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The Armenian government held a regular meeting, chaired by Prime Minister Karen Karapetyan. Finance Minister Vardan Aramyan presented macroeconomic outlook with the rate of economic growth projected to be increased. 

“The 2017 budget envisaged 3.2% economic growth, yet the index of economic activity which is currently 5.5% as well as individual sector developments show our economic growth will stand at 4- 4.8%,” Aramyan said, adding that justified the decision to put economic growth forecast at 4.3% in the 2018 budget bill. 

Aramyan stressed the 2018 budget envisages current expenditure growth totaling to 2.2-2.5%, instead focusing on capital expenditure increase. 

“We need to earmark 5% or more economic growth and create respective basis for that. With the upcoming budget bill, we are increasing defense sector funding. The capital expenditure will comprise 175 billion AMD to compare with 95 billion of the year 2017, while 246,8 billion drams will be allocated to the defense sector, 37 billion more than in the previous budge bill,” Aramyan explained.

The finance minister next noted the cabinet has adopted a conservative stance on budget expenditure with expected 1,247.9 trillion to be collected in tax revenues.

The overall budget expenditure will amount 464.2 billion for 2018, the capital expenditure will stand at 175 billion. The state budget deficit in GDP may make 2.7% in 2018, comprising 156.9 billion AMD.