Armenian government budget deficit in July 2023 turns to AMD 38 billion, 3.6 times the deficit recorded in July 2022

YEREVAN, October 2. /ARKA/. In July, the Armenian government budget turned to an AMD 38 billion deficit, 3.6 times the deficit recorded in July 2022, according to the World Bank's "Armenia monthly economic update - september 2023" review.

Total revenues were flat compared to July of last year, while expenditures were 14 percent higher (yoy), mostly driven by 87 percent higher capital expenditures (including defense).

Current expenditures were also higher in July by 7 percent (yoy), mostly due to a 13 percent (yoy) increase in social protection spending.

Two-thirds of July’s deficit was financed by foreign sources. Cumulatively, during January-July 2023 the budget still registered a surplus (AMD 96 billion) despite the budget plan having envisaged a deficit of more than AMD 100 billion.

Revenues in the first seven months of 2023 increased by 15 percent (yoy), driven by a higher collection in VAT, profit, and income taxes. In the same period, current and capital expenditures increased by 11 and 27 percent (yoy), respectively.--0--