2024-03-13 16:17:06
A 7 percent level of economic growth has been set for 2023, the Chairman of the Central Bank of Armenia, Martin Galstyan, announced during the discussion of the 2023 state budget draft.
“With the projected economic growth, the 2023 state budget plan aims for a slower growth of taxes in GDP, but an acceleration of the rate of growth of capital expenditures and reduction of debt, as a result of which the behavior of the budget on aggregate demand will have a neutral effect in 2023,” he said.
According to Galstyan, the high economic growth predicted for 2023 is based on the significant increase in the share of key investments, including state investments, necessary for ensuring the growth of productivity and competition, and the formation of stable foundations for export growth.
“Ensuring economic growth will significantly depend on the government’s implementation of large state investments in infrastructure within the specified time and in programmed proportions, as well as the full implementation of the measures to encourage investments and export promotion provided by the program,” he noted.
In 2023, fiscal policy will continue to implement smooth consolidation, helping to reduce the debt burden.
“For 2023, a 0.5 percentage point increase in the tax-GDP index has been set, as a result of which taxes will make up 23.7 percent of the GDP,” said the Central Bank President.
In 2023, under the objectives of the fiscal policy aimed at both promoting economic growth and improving the cost structure, it is planned to significantly increase the share of capital expenditures in GDP to 5.9 percent and reduce current expenditures to 21.9 percent.
“Thus, due to the increase in capital expenditures in 2023, the state budget deficit will increase to 3.1 percent of GDP, and the fiscal policy will be neutral, contributing to a small decrease of the debt burden by 1 percentage point to 49.7 percent,” said Martin Galstyan. :