ArmInfo. According to preliminary estimates, Armenia's national debt reached 48.4% of the GDP by the end of 2023 against 49.2% the previous year, Minister of Finance Vahe Hovhannisyan told a press conference.
"It is gratifying that the share of non-resident and non-bank investors is growing, which means Armenia is becoming a country that international institutional investors are interested in. There are also positive trends in bond yields; there has been a certain decline, which is due to a prolonged reduction in the refinancing rate by the Central Bank," the minister said.
In 2023, tax revenues of the state treasury grew at an accelerated pace - up to 24.1% of GDP. The minister recalled that the program for the activities of the cabins plans to increase the figure to 25%. Thus, last year tax revenues (taxes and state duties) increased by 295.9 billion drams or 15.4% - up to AMD 2,221.9bln, against AMD 1,962.5bln (23.1% of GDP) for 2022. Thus, in 2023, Armenia exceeded the program target for collecting tax revenues by approximately AMD 18bln. At the same time, despite the fact that the approved state budget for 2023 planned to collect tax revenues worth AMD 2,203.7bln (23.7% of GDP), in the law "On the State Budget of the Republic of Armenia for 2024" expectations were adjusted to AMD 2,277.8bln (24.1% of GDP).
The execution of the state budget expenditures amounted to 97%. Financial authorities also improved the indicator on capital expenditures. If in 2022 the figure was 95%, then last year it increased by 1 percentage point, noted the head of the Ministry of Finance. Thus, in 2022, the implementation of programs implemented with external assistance was 81.6%, then in 2023 the figure reached 92%. 96.3% of the planned programs were completed through external resources, and 99% through the Ministry of Defense.
According to the Ministry of Finance, in 2023, Armenia increased its public debt by 11.4% or $1,207.6mln - up to $11,845.3mln. During the reporting period, government debt in American currency increased by $1,208.3mln or by 12% - from $10,086.4mln by the end of 2022 to $11,294.6mln, and in drams - by AMD 602.3bln or 15.2% - up to AMD 4,571.9bln.
According to the law "On the State Budget of the Republic of Armenia for 2024", the public debt by the end of this year will reach AMD 5,314bln (50.5% of GDP), instead of AMD 4,659bln expected by the end of 2023 (49.3% of GDP), and AMD 4,659bln actual for 2022 (49.2% GDP). The government's debt will amount to AMD 5,082.9bln (48.3% of GDP) or $11,892bln, against AMD 4,446.1bln (47% of GDP) or $10, 910mln, expected at the end of 2023 and AMD 3,969.7 bln or AMD $10,086mln - for 2022 (46.7% of GDP). In 2024, the government will need AMD 805.2bln to repay and service the debt, of which AMD 483.0bln will be debt repayment, and AMD 322.2bln will be interest payments. At the same time, as the head of the Ministry of Finance Vahe Hovhannisyan said on December 22 in parliament, presenting the corresponding draft decision, after the Armenian government assumes most of the financial obligations of the government and citizens of Nagorno-Karabakh, the government debt by the end of 2023 in relation to GDP will increase by 2.4 p.p. - up to 49.4%.
