Vahan Kerobyan: Economy Ministry`s budget to increase by 47% in 2024

ArmInfo. The budget of the Ministry of Economy of Armenia for 2024 will be 92.2 billion drams,  which is 47% higher than a year ago. Minister of Economy of Armenia Vahan Kerobyan stated on October 31 at the RA NA  Standing Committees discussions on the draft state budget for 2024.

Of this amount, 20.4 billion drams will be allocated to support SMEs,  which is several times higher than the figure a year ago. The  minister noted that over the past 2 years, state assistance in this  direction has increased 5-fold. In this regard, he referred to the  economic modernization program, which involves the modernization of  equipment and production lines, which about 3 thousand business  entities took advantage of. The program portfolio amounted to 167  billion drams, and it could reach 200 billion drams by the end of the  year.

"This means that we are dealing with a portfolio of $500 million.  This is a large portfolio for the Armenian economy. With the  implementation of the program, we see an increase in tax payments  from the latter, an increase in the level of productivity," he said,  noting that the program will raise labor productivity in the country  to a qualitatively new level.

According to the Minister, funding for the implementation of  activities within the framework of the export strategy has been  increased almost 2-fold - from 300 million drams to 577 million  drams, 500 million drams will be used to finance logistics services,  in particular those related to the costs of subsidizing ferry  services.

As good news, Mr. Kerobyan also announced an increase in funding for  capital expenditures for the modernization of the quality  infrastructure system from 30 million drams in 2023 to 1,030 billion  drams for 2024. He noted that several new laboratories will be  established with these funds. "This indicates the government's  intention to develop quality infrastructure and improve the quality  of goods and services exported from Armenia so that the latter meet  international standards," he emphasized.

According to the Minister, next year the funds will also be used to  develop a strategy for the textile and pharmaceutical industries,  attract highly qualified specialists, retrain the Ministry's  employees, develop complex legislative initiatives with the  involvement of consulting companies, acceleration and incubation  programs for SMEs, programs for increasing the scientific component  in entrepreneurial activities, attracting investments, diversifying  exports, etc.

He also announced a program that will soon be presented to the  government and will concern preferential lending to start-up and  small businesses. The minister noted that expenses for this program  have not yet been included in the department's draft budget for next  year. "We plan to ensure an environment in which there will be high  financial accessibility specifically for beginning entrepreneurs,"  Mr.  Kerobyan noted.