HANKAVAN, JULY 15, ARMENPRESS. Under Armenia’s 2018-2020 medium-term expenditure program a fiscal policy has been designed which will be in accordance with the ‘golden rule’ known in economics, according to which capital expenditures and deficit ratio should be such that the capital expenditures both in nominal terms and GDP share must be higher aimed at creating stable grounds for long-term economic growth, Finance Minister Vardan Aramyan said during a seminar in Hankavan on July 15 organized for reporters covering the economic sphere, reports Armenpress.

The process of development of Armenia’s state medium-term expenditure program, its ideology, the role of fiscal policy in the context of regulating the economy are being presented at the event.

The discussion is also focused on the objectives and scope of the Government’s debt management strategy, the developments recorded in debt management field from the beginning of last year up to June 2017, as well as the Government’s 2018-2020 debt management strategy.

It was reported that the Armenian Government’s debt/GDP rate of the previous year comprised 52.2% at the end of 2016. The 2017 state budget deficit has been planned taking into account the limitation set by the Law on ‘State Debt’. Deficit financing at the expense of net internal borrowing means comprised 171 billion AMD compared to the 42 billion AMD of 2016.

The figures in the Government’s 2018-2020 debt management strategy are predicted in the following way: nominal GDP 5,785.6 billion AMD for 2018, 6,341.1 billion AMD for 2019 and 6,974.3 billion AMD for 2020.

The predictions for the state budget are the followings: 1,353.5 billion AMD for 2018, 1,495.2 billion AMD for 2019 and 1,614.2 billion AMD for 2020.

The predictions for the priority expenses of the state budget are the followings: 1,373.7 billion AMD for 2018, 1,495.2 billion AMD for 2019 and 1,614.2 billion AMD for 2020.

The state debt under the 2017 state budget program will comprise 2,802 billion AMD, 3,391 billion AMD will be predicted in 2018, 3,391 billion AMD in 2019, 3,559 billion AMD in 2020, by comprising 51.8%, 54.6%, 53.5% and 51% towards GDP respectively.