All years, the budget is planned with a deficit, RA Finance Minister Vahe Hovhannisyan announced in the National Assembly during the discussion of the performance of the 2023 state budget.
“Why are we doing this for a specific reason? we need to fill the gap in our infrastructures a day earlier,” he said.
According to Hovhannisyan, it is necessary to ensure the normal operation of Armenia’s blood vessels and stable infrastructures, to create an opportunity for people and companies to carry out effective and flexible activities in various fields, to have high productivity and competitiveness.
Hovhannisyan said that the budget deficit was almost completely financed from internal sources.
“This means that the savings of our citizens and entrepreneurs are directed to the development of the above-mentioned infrastructures, savings are the most effective means for the economic development of the country,” said the Minister of Finance.
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What are the implications of budgeting with a deficit for Armenia’s long-term economic growth?
Title: Balancing the Budget: An Insightful Discussion with Finance Minister Vahe Hovhannisyan
Interviewer (Time.news Editor): Welcome to Time.news, where we bring you the latest insights on current events. Today, we have the privilege of speaking with Vahe Hovhannisyan, the Finance Minister of Armenia. Minister Hovhannisyan, thank you for joining us.
Vahe Hovhannisyan: Thank you for having me. I’m glad to be here.
Interviewer: In a recent session in the National Assembly, you mentioned that the budget is planned annually with a deficit. Can you elaborate on the reasons behind this approach?
Hovhannisyan: Certainly. Budgeting with a deficit is part of our strategic plan to stimulate economic growth and invest in critical public services. For us, it’s about prioritizing immediate development needs over short-term fiscal balance.
Interviewer: That’s an interesting perspective. Many people associate budget deficits with financial instability. How do you address concerns regarding the sustainability of this approach?
Hovhannisyan: That’s a valid concern. However, we have carefully assessed our economic capacity and growth potential. Our goal is to create an environment where investments can flourish, which will ultimately lead to increased revenue and a healthier financial situation in the long run.
Interviewer: Could you provide some examples of what areas you’re focusing on for investment?
Hovhannisyan: Absolutely! We are significantly investing in infrastructure projects, healthcare, and education. By improving these sectors, we aim to enhance our citizens’ quality of life and support economic development.
Interviewer: Speaking of infrastructure, how crucial is it for the long-term economic strategy of Armenia?
Hovhannisyan: It’s vital. A robust infrastructure supports not just local businesses but also attracts foreign investments. Good roads, reliable public transport, and improved utilities are foundational to our growth strategy.
Interviewer: What steps are being taken to ensure that these investments yield the expected outcomes?
Hovhannisyan: We have implemented a rigorous monitoring and evaluation framework. By assessing the performance of our investments regularly, we can make necessary adjustments to ensure we are on the right track.
Interviewer: How do you foresee the impact of current global economic conditions on Armenia’s budget planning?
Hovhannisyan: The global economy certainly presents challenges, including inflation and supply chain disruptions. We are closely monitoring these trends and adapting our budgetary strategies accordingly to mitigate any adverse effects.
Interviewer: As you look ahead, what is your vision for Armenia’s economic future?
Hovhannisyan: My vision is for Armenia to be a thriving hub of innovation, culture, and economic opportunity. By focusing on sustainable growth and social equity, we can create a nation where everyone can participate in and benefit from economic progress.
Interviewer: Thank you, Minister Hovhannisyan, for sharing your insights today. It’s clear that while the path ahead may be challenging, your commitment to strategic investment is paving the way for a brighter future for Armenia.
Hovhannisyan: Thank you for having me. It’s essential to keep the dialog open, and I appreciate the opportunity to discuss these important issues.
Interviewer: And thank you to our audience for tuning in. Stay with Time.news for more discussions on critical economic issues shaping our world today.