The Armenian analytical center "Luys" has presented the results of its analysis of Armenia's state budget performance for the first half of 2024. Despite a high economic activity rate of 10.4%, the center's experts have identified several issues in the country's economy.
According to the report, there is a slowdown in the growth of the manufacturing sector, particularly in the jewelry industry, which had been a major driver of economic growth earlier in the year. The growth rate of budget revenues has decreased more than threefold compared to the same period last year, raising concerns among experts.
Total state budget revenues amounted to 1,243.7 billion drams (approximately $3.2 billion), which is 8% below the revised plan, while expenditures reached 1,232.7 billion drams (around $3.16 billion), 12.5% less than planned. Interestingly, instead of the expected deficit of 56.4 billion drams (about $150 million), a surplus of 11 billion drams (around $30 million) was recorded.
The experts at the Luys Center highlight the underperformance in several key programs, including the development of the military-industrial complex and digital transformation. They are particularly concerned that the growth rate of tax revenues is half that of economic activity, which may indicate serious problems in Armenia's economy.
In conclusion, the analysts point to persistent issues in tax administration and the effectiveness of public governance, emphasizing the need for measures to improve the country's economic situation.
