ArmInfo. The draft state budget of Armenia for 2024 is a historic document of historic times, Armenia's Premier Nikol Pashinyan stated at the parliamentary discussions of the 2024 draft budget on November 16.
As the prime minister pointed out, the revenue side of the state budget has doubled compared to 2018 - the figure has increased by 1 trillion 334 billion drams, or more than $3 billion. The expenditure item has more than doubled: in particular, healthcare costs have doubled (170.7 billion drams versus 149 billion drams for the current year), which means a double increase in the level of accessibility of the system for citizens, he emphasized.
In 2024, compared to the figure for 2018, the defense budget will more than double (expenditures through the Ministry of Defense will amount to 555 billion, or 37.7 billion drams compared to 2023 (by 7.3%) - ed.). "But this is not preparation for war, but for defense," the Armenian prime minister hastened to note. He expressed confidence that all neighboring states believe that RA has no desire to attack anyone. In this regard, the Prime Minister considers statements to the contrary to be insincere. In this vein, he recalled that the right and obligation of every sovereign country is to reform and strengthen its army. Pashinyan also pointed out that over the past 10 years, Azerbaijan's military spending has been on average three times higher than that of the Republic of Armenia.
Armenia also increased capital expenditures (net expenditures on non-financial assets will amount to 6.6% of GDP or 23% of expenditure items, and capital expenditures will reach 695.3 billion drams or 126 billion (22%) more than the figure for 2022 - ed.). Compared to the figure for 2018, in 2024 expenditures on the education sector will be more than doubled (about 293 billion drams will be allocated (9.7% of expenditures or 2.8% of GDP) - ed.), he noted.
"Economic growth is the state interest of Armenia and all policies and all concepts must be assessed from the point of view of their compliance with the development interests of the Republic of Armenia. Over the past 5 years, we have ensured GDP growth in Armenia of 28%. This has significantly increased the potential of the Armenian economy," noted Nikol Pashinyan.
According to the forecasts underlying the budget, in 2024, in conditions of ensuring 7% GDP growth (and in the presence of favorable external conditions - all 9%), state treasury revenues will amount to 2 trillion 676 billion drams or 25.5% of GDP, against the expected by the end of this year 2 trillion 365 billion drams or 25.1% of GDP (2 trillion 365 billion drams or 24.3% of GDP for 2022). State treasury expenditures in 2024, compared with the adjusted figure for this year. will increase by 15.9% or approximately 415 billion drams - up to 3 trillion 017 billion 437 million drams or 28.7% of GDP (426.5 billion drams more than the approved figure for this year or 27.6% of GDP). The deficit of 341.1 billion drams will be financed both from internal resources - in the amount of 220.3 billion drams, and from external sources - 120.8 billion drams.
The ratio of public debt to GDP at the end of 2024 will be 50.7%, against those expected by the end of this year. 49.4% and actual 49.3% for 2022. The government's debt will be 48.4%, instead of the 47% expected for 2023 and the actual 46.7% for last year. In dollar terms, the government's debt by the end of 2024 will reach $11 billion 891 million, against the expected $10 billion 900 million for the current year and $10 billion 086 million for 2022. In 2024, 805.2 billion drams will be required to service and repay the government's debt (over $2 billion, estimated US dollar exchange rate 385.9 per $1), of which debt repayments will amount to 483 billion drams, and 322.2 billion drams for interest payments or 3.1% of GDP (2.9% for this year, 2.3% for 2022).
