The Budget Office of the National Assembly of Armenia has released data on tax revenues for the country’s state budget. As of August 10, 2024, tax revenues and state fees amounted to 1.4 trillion drams (approximately $3.5 billion).
This figure represents 72.8% of the planned amount for the first nine months of the current year. Notably, the growth rate of tax revenues shows a positive trend compared to previous years.
According to the Budget Office, the current figure exceeds the same period last year by 8.4%. Even more impressive is the growth compared to 2022 and 2021, with increases of 25.1% and 57.3%, respectively.
However, experts find the report of rising government revenues problematic due to the lack of clear information on the shortfall from the planned tax revenues for the current year. In the first half of the year, the budget received 1.18 trillion drams ($3 billion) instead of the planned 1.3 trillion drams ($3.34 billion), which economists believe adds extra pressure on state finances.
Earlier, Armenian Finance Minister Vahe Hovhannisyan stated that despite high economic growth, the country faces the risk of not meeting its tax revenue targets for 2024. His projections suggest a shortfall of more than 100 billion drams (over $250 million).
BMG reminds that Armenia's budget revenue for 2024 is projected at 2.7 trillion drams (over $6.9 billion), accounting for 24.9% of GDP, while expenditures are expected to reach 3.2 trillion drams (over $8.2 billion). The budget deficit is projected to increase by approximately 142 billion drams (over $364 million) compared to the initial plan, reaching about 483 billion drams (over $1.2 billion) or 4.6% of GDP.
