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YEREVAN, DECEMBER 3, ARMENPRESS. The government has reduced the projected revenues, expenditures and growth predictions in the 2025 state budget draft.
Finance Minister Vahe Hovhannisyan presented to parliament the revised bill on December 3.
He said the economic growth for 2025 is projected at 5,1%.
The revenue, expenditures and deficit were revised in order to re-estimate the GDP, reflect the new realities in the bill.
“The 2025 state budget draft’s revised version projects the GDP at 10 trillion 891 billion drams, and economic growth at 5,1%,” Hovhannisyan said. The figures have been reduced by 158 billion drams and 0,5% respectively.
Revenues are projected at 2 trillion 837 billion drams, which is 35,5 billion less compared to the initial version. The minister said the projection has been reduced due to the reduction of tax revenues resulting from the re-estimation of the GDP.
Expenditures will amount to 3 trillion 441 billion drams (2 trillion 706 billion in current expenditures and 734 billion in capital expenditures). The spending has been reduced by 40,8 billion drams. Capital expenditures increased by 1,7 billion drams.
The reduction in expenditures is mostly associated with reduction in macro-reserves with a size of 48,3 billion drams, which was envisaged for management of the risk of possible decrease in GDP, the finance minister said.
The reserve funds increased by 3,3 billion drams in the budget.
The deficit is still at 5,5% of the GDP and amounts to 604 billion AMD, a decrease by 5,4 billion compared to the first phase.
The 2025 debt-to-GDP ratio is projected at 54,3% instead of the initial 53,5%.