Armenian Finance Minister assesses risks to 2025 budget
YEREVAN, December 5. /ARKA/. Armenian Finance Minister Vahe Hovhannisyan assessed the risks that could threaten the implementation of the 2025 state budget.
"Naturally, events in the region and the processes unfolding around us create significant instability. However, when drafting the budget, we develop scenarios, assess their likelihood, and allocate sufficient reserves aimed at mitigating or neutralizing a substantial portion of potential risks," Hovhannisyan said on Public Television of Armenia.
According to him, for example, there were issues with tax collection this year, but the government was able to mitigate them using reserves
Touching upon the measures to overcome the challenges, Hovhannisyan outlined three key tools being implemented by the Armenian authorities.
"Firstly, this involves increasing tax revenues, not by raising tax rates, but through improved administration, which includes reducing the shadow economy and abolishing existing benefits. The second measure is new borrowings, and the third is savings, meaning a reduction in the expenditure items of the state budget," the minister said.
According to him, government agencies have been instructed to reduce maintenance costs by 4%. This can be achieved by cutting the number of official vehicles, travel expenses, bonuses, utility payments, and other costs.
About the Draft State Budget for 2025
On December 4, 2024, the National Assembly of Armenia approved the updated draft state budget for 2025, which projects a GDP growth of 5.1% for the coming year.
The planned average inflation rate is 3.5%. State budget revenues are expected to reach approximately 2.84 trillion drams, while expenditures will total around 3.4 trillion drams. (Exchange rate: $1 = 402.72 drams).
