Sun, 19 October
20.1 C
Yerevan
USD: 382.59 RUB: 4.71 EUR: 447.25 GEL: 141.36 GBP: 513.89

Armenia’s 2020 government budget deficit to increase to 6.2% – central bank’s report

YEREVAN, December 30. /ARKA/. Armenia’s government budget deficit in GDP will increase by 4.8 percentage points in 2020, compared to last year, and will reach 6.2%, which is mainly due to tax cuts, according to the monetary policy program for the fourth quarter and the central bank’s report on the implementation of monetary policy for the third quarter of this year.

“According to estimates, in 2020 tax revenues will significantly shrink in comparison with the indicator prescribed in the law on the state budget of Armenia for 2020. As a result, the ratio of taxes to GDP will be 22%, having decreased by 0.3 percentage points compared to 2019,” the report says.

In 2020, the GDP will increase significantly – by 11.6 percentage points. The government debt will also increase – it will reach 61.5%.
The report notes that in 2021 compared to 2020, the tax-to-GDP ratio is expected to increase by 0.3 percentage points, and the ratio of deficit to GDP to decrease by about 1 pp.

“Under thesecircumstances, fiscal policy will be somewhat restrictive in order to create conditions for reducing government debt in the medium term and ensuring fiscal stability,” the document says.

On April 29, 2020, the National Assembly of Armenia approved a revision of budget indicators that was prompted by COVID-19 situation. Taking into account the adverse impact of the situation with the coronavirus, the budget forecast for GDP was revised downward – to a decline of 2% (previously, the budget had laid down an increase of 4.9% for the current year), and the deficit was increased to 340 billion drams, or 5% of GDP ( previously 2.3%). ($ 1 – AMD 522.3). -0-

spot_img

POPULAR

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

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

Investor of the new era: how the capital management culture is changing in Armenia

Interest in investments in Armenia is growing, but it is too early to talk about an established capital management culture.

The UAE instead of Europe : why Armenia needs to change its approach to crypto regulation – EXCLUSIVE

The Armenian Forum on Cryptocurrency Assets, organized by the Cilicia Business Club, was recently conducted in Yerevan.

Net loan portfolio of Armenian banks in Q2 2025 increased by 6.11% to AMD 6.8 trillion

The combined loan portfolio of 17 Armenia-based commercial banks upped  by 6.11% in Q2 2025 compared to Q1 2025, amounting to AMD 6.82 trillion, according to a ranking compiled by  the ARKA news agency.

Armenia is experiencing an investment boom: opportunities, barriers and main misconceptions

Armenia's investment market is experiencing a period of active development: the number of issues is growing, digital technologies simplify access to financial instruments.

LATEST NEWS

spot_imgspot_imgspot_img