Today, on September 29, Tigran Khachatryan presented the RA Draft Law "On State Budget of the Republic of Armenia for 2023".
Below some key points from the Minister's speech:
- In the 8 months of 2022, the economic activity increased by 13.9 percent, as a result of which the tax revenue plan originally set by the state budget is being overperformed. This allows not only to fully finance the expenditure plans and measures defined in this year's budget, but also to allocate additional funds for the implementation of security, economic and social initiatives and accelerate the progress of the implementation of goals set by the Government Program for 2021-2026.
- Current economic developments prompt that 2022 will be summed up with 11-12 percent economic growth. This fact in itself is very positive, but in order to ensure the 7 percent economic growth of the coming year, it is also required to accelerate the reforms that should improve the conditions of the private sector of the economy, as well as increase the effectiveness of the implementation of economic and social programs financed by the state budget.
- Government debt to GDP will be below 53 percent this year, compared to 60.3 percent in 2021. During 2023, the involvement of new debt funds will be carried out in such a way that the total government debt at the end of the year is within 50 percent of GDP. Based on that, we plan that during 2023, the state budget deficit will be 3.1 percent of GDP.
- As a result of financing at the expense of own income and borrowed funds, the sum of expenses in 2023 will be AMD 2 trillion 590 billion or 27.8 percent of GDP. It will exceed the expenditures approved in the State Budget for 2022 by 18.3 percent. This will enable to increase the financing of projects aimed at improving economic and security infrastructure.
By the draft state budget for 2023 it is envisaged to significantly increase capital expenditures on security and economic infrastructure improvements: it will amount to AMD 557 billion, which is about AMD 200 billion more than what was fixed by the State Budget for 2022. In 2023, this indicator will reach 5.9 percent of GDP, against the 4.5 percent initially planned for this year. Allocations to security infrastructures will increase significantly, financial allocations for improving economic infrastructures will continue to be high, construction and overhaul works of social infrastructures, educational and health institutions will increase.