13:55, 1 June, 2021

YEREVAN, JUNE 1, ARMENPRESS. Armenia managed to ensure a macro-economic stability in 2020 thanks to the combination of expansionary fiscal and monetary-credit policies, President of the Central Bank Martin Galstyan said while presenting the CBA conclusion over the 2020 state budget performance report.

“The economic crisis caused by the pandemic had its negative effect on the tax revenues. The tax revenues declined by nearly 5.4% in 2020 compared to 2019, however, with the revised program of tax revenues the envisaged figure has been ensured”, he said.

The decline in tax revenues was also connected with the fundamental changes being made in the profit tax in the second quarter.

“In 2020 the state budget expenditures have increased by 16.3% compared to the previous year, mainly connected with the increase in expenses of the coronavirus pandemic, the social benefits connected with the martial law, other expenditures, grants, non-financial assets and pensions”, he said.

The budget deficit has been higher than the capital expenditures. The state budget deficit has increased, reaching 5.4% of the GDP.

“Thanks to the effective combination of expansionary fiscal and monetary-credit policies in 2020, it has been possible to ensure the macro-economic stability, which is a very important achievement given the challenges of the year and their influence. At the same time, the fiscal policy, like in the whole world, immediately responding to the solution of the socio-economic issues caused by the pandemic, has been carried out through the major increase in the debt, deviating from the medium-term and long-term programs”, Martin Galstyan said.

Editing and Translating by Aneta Harutyunyan