YEREVAN, January 11. /ARKA/. The key challenge of the fiscal policy remains the ability to improve domestic revenue mobilization effort and raise tax revenues, Jean-Michel Happi, the World Bank’s Country Manager for Armenia, said in an interview with ARKA News Agency.
This could be done through improvements of the tax administration and streamlining of the tax policy. After massive counter-crisis expansion in 2009, he said, the Government is left with a very little room for fiscal maneuver, if required. To remain on debt-reducing path the long-term fiscal deficit needs to remain below 3 percent of GDP.
“At the same time, the Government is facing the need to maintain pro-poor expenditures and sustain public infrastructure to create and support foundations for future economic growth,” Happi said.
In the government budget, tax revenue is projected to make 21.88% of GDP in 2013 against 17.36% in 2012.
The consolidated budget revenue is planned to total AMD 1 trillion 32.7 billion and expenditure AMD 1 trillion 152.5 billion. Deficit is projected at AMD 119.7 billion or 2.6% of GDP. -0----