Armenian finance minister Vahe Hovhannisyan made a statement regarding the budget deficit-to-GDP ratio for 2023.
During an extraordinary session of the permanent parliamentary Committee on Financial-Credit and Budgetary Affairs on March 21, he presented the report on the progress and effectiveness of the government's five-year program for 2023.
According to him, the deficit-to-GDP ratio was 5.2%, indicating a budget deficit.
Hovhannisyan also noted that an analysis had been conducted to reassess the optimal debt-to-GDP thresholds. According to him, the current multi-level debt-to-GDP threshold system of 40%, 50%, and 60% remains relevant.
To support the stability of the state debt, the process of advancing dram-denominated loans into the budget deficit financing structure continued. Additionally, Ovannisyan reported that over $187 million worth of euro bonds with a yield of 7.15% were redeemed for 2025.
The actual budget expenditures in 2022 amounted to approximately AMD 2 trillion 243 billion ($5.1 billion), while in 2023, this figure increased to AMD 2 trillion 547 billion ($6.5 billion).
Armenia's budget revenues in 2023 increased by 15.1% compared to 2022, reaching AMD 2 trillion 455 billion, which, according to the average dram-to-dollar exchange rate for 2023, is equal to $6 billion 255 million.
