In March 2024, Armenia recorded a budget deficit of 4.7 billion drams. This information is highlighted in the monthly economic development review of Armenia, published by the World Bank.
According to the report, tax revenues in nominal terms increased by 9.5% in March, primarily due to personal income tax and profit tax, which grew by 28% and 44%, respectively. This partly reflects high economic activity and profitability of organizations throughout 2023.
On the other hand, excise tax collection decreased by 40.4% due to a lower volume of imported alcoholic beverages and cigarettes.
Expenditures increased by 16.1%, mainly due to a 26% rise in social spending, including refugee support, and a 25.2% increase in defense spending.
Since the beginning of the year, the budget deficit has remained very small, amounting to 0.01% of GDP, as noted in the report.
Earlier, BMG reported that Armenia's GDP in the first quarter increased by 9.2% compared to the same period last year, exceeding $5 billion. In the first quarter of 2024, Armenia's GDP per capita was 653,721 drams ($1,685) compared to 608,356 drams ($1,560) for the same period last year.
Economic growth in Armenia's state budget for 2024 is projected at 7%, with inflation set at 4% (±1.5%).
