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The National Assembly of Armenia has adopted today the draft law on the state budget of the Republic of Armenia for 2017. Finance Minister Vardan Aramyan named fiscal and debt sustainability as the most important principle put in the budget.

To the minister’s words, in 2014-2015, state high deficit of 4.8 percent was recorded, and prediction for the current year is 5.9 percent, which has resulted in the grow of the government debt to GDP.
 
“This the primary source for the debt growth,” Aramyan explained, adding: “ Over the past two years Armenia’s external debt has grown from 43.7 to 54.4 at the end of the year.  Naturally we should be more conservative in the upcoming years to avoid debt increase,” Aramyan said.

It is envisaged that in 2017 consolidated total revenue of the state budget will make up 1 trillion 135 milliard AMD, while expenditure will amount to 1 trillion 360 milliard AMD. The state budget deficit will be 150,1 milliard AMD or 2.8 percent. The budget also envisages 3,2% GDP growth.

Speaking of the state budget, Armenian Prime Minister Karen Karapetyan said: “We plan a tight budget for the year 2017, as evidenced by the numbers projected in the budget. We envisage a growth of 70 milliard [AMD] in revenues and 100 milliard [AMD] decrease in expenditure. All the questions raised about the decrease of the state expenditure appear to be quite actual”.