Armenia faces a challenging choice between managing public debt, increasing expenditures, and optimizing tax policy, stated Eduard Hakobyan, Head of the State Revenue Committee (SRC), while commenting on the parameters of the approved 2025 budget.
According to the document passed by parliament, budget revenues will amount to $7.2 billion, while expenditures will reach $8.7 billion. With a projected GDP growth of 5.1%, the ratio of public debt to GDP is expected to be 54.3%.
Hakobyan noted that the country is compelled to significantly increase spending on security and support for compatriots from Karabakh, while striving to maintain economic growth. "The question is whether the current level of taxes is sufficient to address these challenges," emphasized the SRC head.
Hakobyan believes that success will come to those countries capable of finding an optimal balance among three key indicators: public debt, expenditures, and tax revenues.
