Monday, October 28 2024 12:17
Alexandr Avanesov

Stregthening resilience and increasing economic potential one of  major tasks of Armenia`s government next year - minister 

Stregthening resilience and increasing economic potential one of  major tasks of Armenia`s government next year - minister 

ArmInfo. One of the main tasks of the Armenian government in 2025 will be to strengthen resilience and increase economic potential. This was stated by RA Finance Minister Vahe Hovhannisyan on October 28 during the  discussions in the commissions of the National Assembly of the Republic of Armenia on the draft state budget for 2025. 

According to him, it will also be necessary to ensure the maintenance  of fiscal stability and the management of macro-fiscal risks. In the  next financial year, as the minister noted, capital expenditures will  amount to about 733 billion drams, which is more than 5.4% higher  than the capital expenditure figures envisaged by the state budget  for the current year. The share of capital expenditures in the  country's GDP will be 6.6%, which is approximately in line with  similar indicators for 2024, but will be 0.6% higher than the  expected expenditures in 2024. Hovhannisyan noted that 55.5% of all  expenditures will be directed to the defense sector, to which 664.4  billion drams will be allocated next year, or 20% more than in 2024.  As a result, the volume of defense expenditures will amount to 6% of  Armenia's GDP and will exceed the same indicator for the current year  by 0.7%.

The Minister also said that social protection expenditures in 2025  will amount to 905 billion drams, or 13.9% more than in 2024.  However, as Hovhannisyan emphasized, there will be no significant  changes in state policy in this area. As a result, social spending  will amount to 82% of GDP, exceeding last year's figure by 0.6%.  Hovhannisyan noted that education expenditures next year will amount  to 300 billion drams, which will exceed the same figure in the  country's 2024 state budget by 4.4%, amounting to 2.7% of GDP, which  corresponds to last year's budget figure. In general, as the Minister  emphasized, under conditions of ensuring GDP growth of 5.6%, 3.5% GDP  deflator and average inflation of 3.6%, the state budget revenues of  Armenia in 2025 will grow by 279.5 billion drams - to 2 trillion  873.1 billion drams (about $ 7.4 billion), which is 11% higher than  the expected figure for this year, and 22% higher than the actual  figure for 2023.

State treasury expenditures are planned at the level of 3 trillion  482.4 billion ($7.8 billion) or 31.5% of GDP. This figure exceeds  expectations for 2024 (30.4%) by 13% and actual expenditures for 2023  (27.5%) by 37%. Of the planned expenditures for next year, 2 trillion  749.2 billion drams will be current expenditures (24.9% of GDP).  733.2 billion drams ($1.88 billion) or 6.6% of GDP will be expenses  on non- financial operations (capital investments), which is higher  than the planned figure for 2024 of 695 billion drams ($1.79 billion)  and the expected 639.3 billion ($1.65 billion) - 6.3% of GDP.  According to the results of last year, capital expenditures amounted  to 472.6 billion drams or 5% of GDP.

The deficit in 2025 will amount to 609.4 billion drams or 5.5% of  GDP, against 482.9 billion drams or 4.6% of GDP in the budget  approved for the current year and 4.8% according to this document.  

POST A COMMENT
Input digits     


News
Armenia`s minister of economy meets with AmCham business communityArmenia`s minister of economy meets with AmCham business community
Qualitative changes in Armenia`s tourism industry - minister Qualitative changes in Armenia`s tourism industry - minister 
Improving quality of services in Armenia`s regions among priorities -  Chairperson of the Tourism CommitteeImproving quality of services in Armenia`s regions among priorities -  Chairperson of the Tourism Committee
USD. RUB trasnactions up in Armenia`s interbank foreign exchange  market Dec 2 to 6USD. RUB trasnactions up in Armenia`s interbank foreign exchange  market Dec 2 to 6
ZMMC CSO Director: In the coming years, the mining industry will have a positive impact on the Armenian economyZMMC CSO Director: In the coming years, the mining industry will have a positive impact on the Armenian economy
Armenia`s service sector revenue reaches nearly $7 billion by November.Armenia`s service sector revenue reaches nearly $7 billion by November.
Armenia`s metallurgical industry grew by 4%   in the first 10 monthsArmenia`s metallurgical industry grew by 4%   in the first 10 months
Electricity generation in Armenia increased by 4.6% in 10 monthsElectricity generation in Armenia increased by 4.6% in 10 months
Armenia`s wine production decreasingArmenia`s wine production decreasing
Armenia`s GDP growth for 2025 revised down to 5.1%Armenia`s GDP growth for 2025 revised down to 5.1%
RA Ministry of Economy, World Bank representatives discuss tourism  cluster development  in Gyumri RA Ministry of Economy, World Bank representatives discuss tourism  cluster development  in Gyumri 
Meeting with WB delegation at Armenia`s Ministry of EconomyMeeting with WB delegation at Armenia`s Ministry of Economy
1,200 Armenian trucks in queue at Upper Lars checkpoint1,200 Armenian trucks in queue at Upper Lars checkpoint
Armenian producers participate in Food Africa exhibitionArmenian producers participate in Food Africa exhibition
Armenian businessmen record 14.5% growth in Wildberries sales in  Jan-Sept, 2024Armenian businessmen record 14.5% growth in Wildberries sales in  Jan-Sept, 2024
EDB develops database of non-sovereign financing in Eurasian region EDB develops database of non-sovereign financing in Eurasian region 
Ardshinbank Partners with the European Investment Bank to Improve Climate Risk ManagementArdshinbank Partners with the European Investment Bank to Improve Climate Risk Management
Ameriabank named the Bank of the Year 2024 in Armenia by The  Banker MagazineAmeriabank named the Bank of the Year 2024 in Armenia by The Banker Magazine
EDB forecasts decline in Armenia`s GDP growth rate from 6% to 5.5% in  2024-2025 EDB forecasts decline in Armenia`s GDP growth rate from 6% to 5.5% in 2024-2025
OPEC Fund to provide 50 million euro loan to Armenia OPEC Fund to provide 50 million euro loan to Armenia
EDB plans to invest $200-250 million in Armenia in 2025-2026- MandronEDB plans to invest $200-250 million in Armenia in 2025-2026- Mandron
GIZ presents water resources management program  in ArmeniaGIZ presents water resources management program  in Armenia
Economic activity growth in Armenia slowed to 8.1% in January-October  2024 Economic activity growth in Armenia slowed to 8.1% in January-October 2024
Armenia and Algeria to collaborate in trade, economy and tourismArmenia and Algeria to collaborate in trade, economy and tourism
EDB ready to support Mastara reservoir construction once a proposal  is submitted - PodguzovEDB ready to support Mastara reservoir construction once a proposal  is submitted - Podguzov
EDB: Armenia withdrew its application for financing Amulsar mine  projectEDB: Armenia withdrew its application for financing Amulsar mine  project
Armenia`s government approves draft agreement between EAEU and  Mongolia  Armenia`s government approves draft agreement between EAEU and  Mongolia  
Armenian Airlines announce seasonal discounts Armenian Airlines announce seasonal discounts 
Events organized to raise Tavush residents` awareness of sustainable  energy technologies Events organized to raise Tavush residents` awareness of sustainable  energy technologies 
Kazakh Central Depository granted membership of Central Depository of  Armenia Kazakh Central Depository granted membership of Central Depository of  Armenia 
Reduced expenses on Armenia`s economic development to reduce budget  potential - Luys FoundationReduced expenses on Armenia`s economic development to reduce budget  potential - Luys Foundation
IDBank donated 10,000,000 AMD to the 27th IDBank donated 10,000,000 AMD to the 27th "For You, Armenia!" Telethon
There is a shadow turnover of funds in the bus transportation sector  - Prime MinisterThere is a shadow turnover of funds in the bus transportation sector - Prime Minister
Gevorg Papoyan: We are now very close to the real volumes of our  exportsGevorg Papoyan: We are now very close to the real volumes of our  exports
1.4% y/y inflation recorded in Armenia in Nov 2024 1.4% y/y inflation recorded in Armenia in Nov 2024 
Armenia`s minister of economy explains higher number of jobs Armenia`s minister of economy explains higher number of jobs 
Armenia`s NA ratifies protocol granting status of independent  international organization to EFSDArmenia`s NA ratifies protocol granting status of independent  international organization to EFSD
Armenian NA approves 2025 draft budgetArmenian NA approves 2025 draft budget
Opposition NA factions vote against government-submitted 2025 draft  budgetOpposition NA factions vote against government-submitted 2025 draft  budget
EFSD to provide Armenia with $200 mln loan for construction of  Kajaran tunnelEFSD to provide Armenia with $200 mln loan for construction of Kajaran tunnel
 Armenian authorities aim to establish a stable and favorable  environment for SMEs in the market Armenian authorities aim to establish a stable and favorable  environment for SMEs in the market
“The Will to Get Back on Your Feet Again” ։ A Film Series Funded by AraratBank
EFSD to become fully independent international organizationEFSD to become fully independent international organization
Fluctuations do not cause changes in 2025 draft budget of Armenia Fluctuations do not cause changes in 2025 draft budget of Armenia 
Upper Lars checkpoint open for transport
RA Finance Minister, German Ambassador discuss projects implemented with KfW supportRA Finance Minister, German Ambassador discuss projects implemented with KfW support
CBA hosting the 27th meeting of the Advisory Council on Monetary Policy for EAEU Member StatesCBA hosting the 27th meeting of the Advisory Council on Monetary Policy for EAEU Member States
Armenia`s gross international reserves 5.8% down by Nov 2024Armenia`s gross international reserves 5.8% down by Nov 2024
Armenian ECPC Chairman leaves for Paris Armenian ECPC Chairman leaves for Paris 
Armenia to host Plenary Session of PABSEC GAArmenia to host Plenary Session of PABSEC GA
RA Minister of Economy: Armenia and Georgia have great potential for  collaboration RA Minister of Economy: Armenia and Georgia have great potential for  collaboration 
863 Armenian trucks waiting to pass through Upper Lars checkpoint863 Armenian trucks waiting to pass through Upper Lars checkpoint
In 2025, Armenia will allow duty-free import of up to 9,000 tons of  cattle meat into the countryIn 2025, Armenia will allow duty-free import of up to 9,000 tons of  cattle meat into the country
EEC Council approves exemption from import customs duty on butter for  ArmeniaEEC Council approves exemption from import customs duty on butter for  Armenia
Wind power generation project discussed with Asian Development BankWind power generation project discussed with Asian Development Bank
Vahe Davtyan: Pressure on ANPP is part of broader geopolitical  competitionVahe Davtyan: Pressure on ANPP is part of broader geopolitical  competition
Gevorg Papoyan: Reducing target inflation threshold in the short term  will have negative economic consequencesGevorg Papoyan: Reducing target inflation threshold in the short term  will have negative economic consequences
 Economy Minister expects construction of Masdar`s solar station to  start in 2025 Economy Minister expects construction of Masdar`s solar station to  start in 2025
Economy Minister attributes Armenia`s economic slowdown to  Statistical Committee`s outdated calculation methodology Economy Minister attributes Armenia`s economic slowdown to  Statistical Committee`s outdated calculation methodology 
Depputy head of Armenia`s State Revenue Committee attends the Global  Forum on Transparency and Exchange of Information on TaxationDepputy head of Armenia`s State Revenue Committee attends the Global  Forum on Transparency and Exchange of Information on Taxation
Read more
Exchange rates
06.12.2024
RUB4.030.1
USD401.31-1.72
EUR424.710.52
GBP512.11-0.46
CAD285.83-0.86
JPY26.65-0.20
CNY55.25-0.23
CHF457.231.26