Armenian government approves draft state budget for 2025, economic growth is planned at 5.6%

YEREVAN, September 26 /ARKA/. The Armenian government approved the draft state budget for 2025 at a meeting on Thursday, according to which the country's economic growth is planned at 5.6%. 

As stated by the Armenian Minister of Finance Vahe Hovhannisyan, the budget for next year has been formed taking into account the revised expenditure strategy for 2025-2027. 

"For 2025, the Gross domestic product (GDP) volume is projected at 11 trillion 50 billion drams, economic growth at 5.6%, GDP deflator index at 3.5%, average inflation at 3.5%. State budget revenues are planned at 2 trillion 873 billion drams, of which 2 trillion 760 billion drams are tax revenues," the minister said. 

According to him, as a result of improved administration, the tax-to-GDP ratio will increase by 0.7%, reaching the government's target of 25%. "State budget expenditures are planned at 3 trillion 482 billion drams, of which 2 trillion 749 billion drams are current expenditures, and 733 billion drams are capital expenditures," he said. 

The Minister noted that capital expenditures are at a historically high level in order to strengthen economic and defense infrastructures. Hovhannisyan emphasized that the spending policy will be aimed at strengthening the country's defense system in order to increase the country's resilience to possible risks. 

"The state budget deficit is planned at the level of 609 billion drams. The framework of the fiscal policy was outlined with a high level of capital expenditures, the impact of which is felt by deficit, which will grow to 5.5% in 2025, but will decrease to 3% in the medium term. By the end of 2025, the ratio of government debt to GDP will be 53.5%," Hovhannisyan said. ($1 - 387.50 drams). -0-