Armenian government approves draft budget for 2023

YEREVAN, Sept. 29. /ARKA/. The Armenian government has approved today a draft state budget for 2023. According to Finance Minister Tigran Khachatryan, the 2023 budget was drafted amid complicated international and regional challenges.

"In recent months, the global economic environment has become more unstable, international trade has slowed, transportation has become more costly, and prices of goods and services continue to rise. These conditions have a direct impact on our economic environment and complicate macroeconomic forecasts for the coming year," he stressed.

At the same time, according to the minister, despite the risks and instability, Armenia's economic activity in the first 8 months of 2022 grew at the rate of 13.9% enabling tax authorities to collect more taxes than projected.

Khachatryan noted that the government's plan of actions designed for 2021-2026 envisages a high economic growth of at least 7% annually. He said current economic developments suggest that the GDP this year will grow by 11-12% and the tax-to-GDP ratio will make 23.2%.

"In 2023 and every year thereafter, the tax-to-GDP ratio should increase by 0.5% per year, which is indicated in next year's draft state budget. The 2023 budget calls for 2.204 trillion drams in revenues, exceeding this year's expected figure by 280 billion drams," he said.

The Finance Minister said that that total budget expenditures in 2023 will amount to 2.59 trillion drams or 27.8% of GDP, exceeding the 2022 budgeted expenditures by 18.3%.

"This will increase funding for programs designed to improve security infrastructure and the economy in all areas. The government will also increase substantially the social funding," he said. ($1 - $408.04 AMD).-0-