ArmInfo. The implementation of the capital expenditure program provided for by the state budget of Armenia in 2023 will not differ much from the indicators in 2022, RA Minister of Finance Vahe Hovhannisyan stated on October 31 at a hearing on the draft state budget of Armenia Vahe Hovhannisyan, in response to a question by MP Tadevos Avetisyan of the opposition Armenia.
The MP inquired about the implementation of the capital expenditure program, which is underfulfilled every year. In particular, as of September 15, the implementation of the budget for capital expenditures was only 47%. From the beginning of the year to September 15, it was planned to carry out capital expenditures in the amount of AMD 411bln, and carried out AMD 194bln.
In response, the minister agreed with the existing problem, which is beginning to become systemic. According to him, in the first quarter, capital expenditures are underfulfilled, and by the end of the year these volumes increase significantly, which, however, is understandable, since payments are made after the completion of construction work and the signing of acts of commissioning of the facility. Another question, Hovhannisyan noted, is that this process must be properly planned by month. He proposed planning the results of fulfillment of state budget provisions on capital expenditures for the fourth quarter.
Speaking about the risks associated with meeting the planned GDP growth rate for 2024 of at least 7%, the minister noted that they are associated with various internal and external factors. These risks are assessed based on various scenarios. There are estimates of the scale of influence of certain risks on the development of the country's economy. In order to manage these risks, it is planned to increase the volume of reserves, that is, "safety cushion". "There are revenues that have not been distributed, and if problems arise, including those related to the level of tax collection, the volume of available reserves will be reduced. Risks also include sharp fluctuations in exchange rates and insufficient economic growth, which can negatively affect tax collections. We should not discount various external shocks that can affect the country's GDP growth rate," the minister emphasized.
According to the bill, in 2024 the economic growth rate is planned at at least 7%. State treasury revenues are provided at AMD 2,600.566bln, which is 15.4% higher than the plan for 2023, and expenses - AMD 7bln, or 15.9% higher. Among expenses, capital expenditures will amount to AMD 695bln, or 22% more than the plan for 2023. At the end of next year, the tax-to-GDP ratio is planned to increase by 0.75%. The budget deficit will be about AMD 340bln or 3.2% of GDP. As a result, by the end of 2024, the government's public debt to GDP ratio will be 48.4%, that is, below 50%.
