Sat, 26 July
35.1 C
Yerevan
USD: 383.94 RUB: 4.85 EUR: 450.25 GEL: 141.78 GBP: 516.63

Armenia raises national debt ceiling

YEREVAN, December 20. /ARKA/. A set of amendments passed today in the second and final reading to Armenian laws related to the state budget and the national debt, provide for three national debt ceilings – 40%, 50% and 60% of the GDP.

According to finance minister Vardan Aramyan, the amendments clarify the principles of fiscal policy regarding public finance management and, with the help of additional legal norms, provide for more regulated and flexible processes in the preparation and implementation of the state budget.

According to the minister, under the 40% national debt ceiling government’s capital expenditures should exceed the budget deficit. In his words, this logic underlies the state budget for 2018. Under the 50% ceiling the need to ensure the growth of current expenditures is added to the previous requirement. Under the 60% ceiling the approaches are even more toughened, and current expenditures are tied to domestic revenues.
The minister recalled that under the current law if the level of public debt exceeds 50% of GDP, then next year’s budget deficit should not exceed 3% of the average GDP over the previous three years.

Opposition Yelk and Tsarukyan factions in the parliament voted against this document. Naira Zohrabyan from the Tsarukyan bloc said they oppose the attraction of additional loans because they would increase the already high level of public debt.

“These amendments provide the government with the opportunity to attract new loans, thereby increasing the financial burden on the Armenian economy. Next year, the amount of per capita state debt will exceed $2200, which is unacceptable, “Zohrabyan said.

According to the National Statistical Service, Armenia’s overall state debt at the end of September 2017 stood at $6.307.9 billion, having increased by 0.76% or $48 million from the previous month. By the end of this year it is expected to reach $6.245 billion against $5.849 billion in 2016. -0-

spot_img

POPULAR

A scheme for stealing funds through fake investment platforms  exposed in Yerevan

A criminal group operating in one of the capital's business centers and stealing citizens' money through Internet calls has been exposed in Armenia, the Investigative Committee of Armenia reports.

Fitch expects inflation in Armenia to remain within the target level until 2027

International rating agency Fitch expects inflation in Armenia to remain within the target level until 2027, although soft fiscal policy and the projected moderate weakening of the dram create certain risks.

Fitch forecasts Armenia to tighten fiscal policy after 2027

Fitch Ratings analysts forecast a tightening of fiscal policy by the republic's authorities in a new report on Armenia.

Ranking of most profitable banks in Armenia based on results of first quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the first quarter of 2025.

Armenia’s economy to stabilize on 5.5% growth trajectory in 2025 – EDB forecast

According to EDB forecasts, Armenia's economy will stabilize on a 5.5% growth trajectory with domestic demand remaining the main driver of development.

LATEST NEWS

spot_imgspot_imgspot_img