2024-08-01 03:47:47
The plan of the RA state budget in 2022 is quite ambitious, the Chairman of the RA Central Bank, Martin Galstyan, announced in the National Assembly.
According to him, compared to the government’s medium-term spending plan, a significant acceleration of economic growth and potential is assumed. “In the conditions of economic targets set by the RA government’s five-year plan aimed at increasing the potential of Armenia’s economy, and in the conditions of expected favorable external economic developments, a 7 percent economic growth rate has been set for 2022,” he said.
According to Martin Galstyan, the high economic growth planned for 2022 is based on the implementation of large-scale state investments in infrastructure and human capital development sectors, as well as measures aimed at promoting the export sector of the economy, which will contribute to increasing the country’s competitiveness and general productivity.
“In 2022, the rapid recovery of aggregate demand will continue due to increases in both domestic and foreign demand. the increase in domestic demand in the period under review will be due to high increases in both public and private investment under the government’s investment promotion policy. Therefore, from the point of view of the impact on the economic potential, we consider it important to have a clearer discussion of the measures planned in the direction of investment promotion and export promotion in the discussions of the budget plan,” said the Central Bank President.
He said that as a result of economic recovery and continuous improvement of tax administration, as well as the implementation of legislative reforms, in 2022 it is expected that the tax-GDP indicator will grow significantly by 0.9 percentage points, under which the state budget revenues will have a restraining effect on aggregate demand.
Martin Galstyan noted that under the restraining effect of taxes and the expansion of spending, a reduction of the state budget deficit by 1.6 percentage points of GDP is planned in 2022.
“According to our estimates, it will be 3.1 percent and the reduction of the government’s debt-GDP ratio by 0.7 percentage points, which will be 60.2 percent,” he emphasized.