ArmInfo. Today, chaired by Prime Minister Nikol Pashinyan, a consultation was held in the Government, during which the budget fulfillment of first quarter of 2023 was discussed, the Premier's press service reports.
The Ministry of Finance presented a summary report on the financial performance of state budget programs and measures during the mentioned period. Reference was made to departmental appropriations and capital and current expenditures. The volume of revenues and expenses of the state budget in the first quarter, as well as GDP growth estimates were reported.
A discussion was held on the mentioned topics. Issues related to macroeconomic developments, the effective implementation of the state budget, improvement of procedures and legislative framework, future actions were touched upon.
The Prime Minister emphasized the fulfillment of the state budget at a proper level and instructed to be consistent in the implementation of planned capital and current expenditures and programs that are a state priority.
It should be noted that the underperformance of capital expenditures in Armenia has become a sad tradition. Earlier, experts from the Luys Foundation noted that among the reasons for underperformance are often unrealistic (or at least insufficiently substantiated from the point of view of performance) indicators of state budget planning.
Moreover, this observation is relevant both for the state budgets of past years, and in the case of the main financial document for 2023. "It seems that just to make the budget "pleasing to the ear," it initially included unrealistic indicators, and then, during the year, the government does not take enough practical steps to implement them," the study said.
In 2022, Armenia collected taxes for 1 trillion 926 billion drams, against the planned 1 trillion 844 billion drams. In 2023, in the context of a 7% GDP growth (nominal GDP will amount to 9 trillion 317.9 billion drams), a 5% deflator and 5.6% inflation, they plan to collect tax revenues (taxes and state duties) for 2 trillion 203.7 billion drams (23.7% of GDP). In general, state treasury revenues will reach 2 trillion 302 billion drams (24.7% of GDP), while expenditures will reach 2 trillion 591 billion drams (27.8% of GDP), of which current expenditures - 2 trillion 043.3 billion drams (21.9% of GDP), and the deficit - 288.9 billion drams (3.1% of GDP). According to the forecast of the financial authorities, in 2023 the capital expenditures of the Republic of Armenia will reach 5.9% of GDP against 4.7% planned for 2022.
