Results of Armenia's fiscal policy in 2024 deviated from the target indicators - the head of the Central Bank

YEREVAN, June 4. /ARKA/. In the conditions of macroeconomic uncertainty that emerged in 2024, the results of the implemented fiscal policy in Armenia deviated from the medium-term and long-term targets, in particular, in terms of tax collection, said the Chairman of the Central Bank of the Republic Martin Galstyan.

"Thus, tax revenues increased by 5.1% compared to 2023, and the tax-to-GDP ratio decreased by 0.5 percentage points and amounted to 23.6%. It should be noted that the tax-to-GDP ratio decreased by 1.3 percentage points. was lower than the planned indicator for the year, falling short of the target medium-term indicator,” he said on Wednesday in parliament during the discussion of the report on the implementation of the Armenian state budget for 2024.

In this context, according to Galstyan, the Central Bank attaches importance to ensuring the necessary measures of sectoral redistribution arising from the structural features of economic growth, as well as the planned volumes of state capital expenditures.

The head of the Central Bank also noted that the implementation of capital expenditures in 2024 has slightly worsened. Thus, according to him, the implementation of capital expenditures under the revised programs amounted to 84.7% against 95.8% in the previous year, and to the initial budget implementation program - 78.5%.

In this regard, Galstyan attached importance to increasing the efficiency of the implementation and control of the capital expenditure program. “Moreover, any insufficient implementation of capital expenditures creates risks for ensuring the target indicator of potential economic growth,” he emphasized. As part of an effective combination of fiscal stability and economic stimulus in the medium term, the Central Bank emphasizes the importance of consistent implementation of effective measures to ensure the achievement of the targets set by the government.