“The state debt in GDP will decrease by one percentage point. Since 2014 the state debt in GDP was increasing by about 13%, in other words, it was increasing by 5-7% every year. But this year efforts were made to stop this increase by 3-4%, and in 2018, according to assessments, the debt/GDP rate will decrease by one percentage point”, the minister said.
The discussions are focused on revising and upgrading the fiscal rules, the macro-economic framework of the budget of 2018, including the developments of external world, Armenia’s macro-economic developments and predictions, revenues and expenditure framework.
It was stated that the world economies responded to the crisis through promoting fiscal policy. As a result the government debt/GDP rates have increased after the crisis. Moreover, after the crisis the fiscal policy has deviated from the golden rule in terms of current state expenditures. It also has deviated from the golden rule in terms of capital expenditures. The golden rule defines that the capital expenditures of the state budget should be higher than the state budget deficit. Armenia’s state investments are at relatively low level. As a result the state debt surpassed 50% in 2016. The risk of passing the state debt’s line of 60% is at...
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