Budget performance leaves to be desired - minister 

ArmInfo. In 2024, the tax revenues of the state treasury of Armenia will be about 200 billion drams less than the program indicator. This led to a reduction in the expenditure items of the state budget. This was stated by the head of  the department Vahe Hovhannisyan on December 25 at the final press  conference.

Thus, according to the minister, despite the fact that in absolute  figures the tax revenue indicators are higher than last year, the  actual budget execution is lower than the program indicator.

<This is due to the fact that this year tax revenues will be about  200 billion drams less than planned. In this regard, we tried to  restrain the implementation of a number of expenditure items in order  to avoid additional problems>, - he specified.

In particular, in order to avoid problems with the country's  financial stability, the authorities cut expenses, for example, in  the area of school construction programs. But next year, school  construction will be carried out on an unprecedented scale - 150  schools will be included in the program, concluded Hovhannisyan.

According to the Ministry of Finance, the revenues of the state  treasury of Armenia amounted to 2 trillion 268.9 billion drams in  January-November 2024. Compared to the same period last year, the  figure increased by 9.6% or 199.2 billion drams. The expenditures of  the state budget of the Republic of Armenia amounted to 2 trillion  501.1 billion drams. Compared to the same period last year, the  figure increased by 17.3% or 368.7 billion drams. During the  reporting period, the deficit amounted to 232.2 billion drams,  compared to 62.7 billion drams for the same period in 2023.

However, as it became known, the financial authorities had previously  adjusted their expectations for the main macroeconomic indicators for  2024. Thus, in the law <On the state budget of the Republic of  Armenia for 2025>, by the end of the current year, the state treasury  of Armenia, with a GDP growth of 5.8% (today the head of the Ministry  of Finance announced a figure of 5-5.5% - ed.), compared to the  program indicator for the current year, will lose revenues in the  amount of 130 billion drams, the shortfall in tax revenues and state  duties will amount to 157.8 billion drams. State budget expenditures  will be cut by 130.5 billion drams. Current expenditures are planned  to be reduced by 74 billion drams. Expenses on non- financial assets  are expected to fall by 56 billion drams - to 639.3 billion drams. As  a result, the only constant is a deficit of 482.9 billion drams.