13:07,

YEREVAN, NOVEMBER 17, ARMENPRESS. The Central Bank of Armenia says the government’s 2022 state budget draft is quite ambitious. According to the CBA, there will be a certain decline in the debt burden in 2022.

“Overall, it can be said that the 2022 state budget draft is quite ambitious, compared to the government’s medium-term expenditure program, it supposes significant acceleration of the economic growth and potential”, CBA President Martin Galstyan said during today’s debate of the budget draft in the Parliament and reminded that 7% economic growth has been forecast for 2022.

He said that the economic growth of 2022 will be based on large-scale state investments in infrastructure and human capital development areas.

“The quick restoration of gross demand, connected with the increase in both the domestic and external demand, will continue in 2022”, he said, while presenting the CBA conclusion on the budget draft.

As a result of economic recovery, tax administration and legislative reforms, it is expected that the taxes-GDP rate in 2022 will have a 0.9% growth, in case of which the state budget revenues will have a restraining effect on the gross demand. “On the other hand, the 2022 state expenditure policy will be directed to growth promotion, targeting the significant increase in share of public investments and management of the efficiency of spending, at the same time returning to the set fiscal rules”, he said.

Cut in state budget deficit is expected in 2022, by 1.6 percentage point against GDP. “According to our estimations, it will comprise 3.1%, a 0.7% decline in government debt-GDP rate, which will comprise 60.2%”, Martin Galstyan said. “It is estimated that the smooth consolidation behavior and the preservation of the fiscal rules as enshrined by the 2022 state budget draft will contribute to reducing Armenia’s state debt burden and ensuring macro-economic stability”.

Editing and Translating by Aneta Harutyunyan