At an extraordinary meeting held on July 12, the Armenian government approved the Medium-Term State Expenditure Program for 2022-2024 and the strategic plan for debt reduction for the Republic of Armenia for 2022-2026.
It should be noted that the state's medium-term expenditure program is formulated for the upcoming three-year period.
Accordingly, the revenues of the RA state budgets for 2022, 2023, and 2024 are projected to be 1,819.2, 1,966.7, and 2,148.3 billion drams, respectively. The annual program volumes of revenues will be primarily sourced from tax revenues.
As for the economic growth, for the years 2022-2026, the RA government aims to ensure an average annual economic growth of 7 percent.
While presenting the document at the meeting, the acting Minister of Finance of the Republic of Armenia stated, 'In the medium-term expenditure plan, we propose a high-growth scenario of 7 percent for the upcoming period. This scenario includes a proposal for stable economic growth, with ambitions that it can be even higher.
It is noted that in order to achieve such high growth, in the future years, the economy of Armenia should develop according to the model of economic growth based on the offer outlined by the plan of the RA government. The government's fiscal policy will be aimed at reducing the government's debt burden and promoting long-term economic growth. In the conditions of high economic growth, it is planned to smoothly reduce the government's debt burden.
In the event of implementing the mentioned scenario starting from 2023, we will achieve a debt-GDP ratio below 60 percent, indicating that we do not rule out the possibility of discussing additional capital expenditures," noted the acting minister.
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