YEREVAN, JUNE 26, ARMENPRESS. Finance Minister Vardan Aramyan doesn’t consider the increase of state debt as a problem from nominal perspective, reports Armenpress.

During the discussion of the 2016 state budget performance report at the joint session of parliamentary standing committees, the Minister said it is obvious that if revenues are not enough to carry out the expenses, there is a need to borrow a debt.

“It is impossible without that. Moreover, if we look, we will see that companies are not satisfied only with capital. They invest the capital, then enter borrowed markets and take resources from there in order to develop. All companies have a debt index”, he said in response to a question of ARF faction MP Armenuhi Kyureghyan.

The Minister added that Armenia will continue to borrow a debt, but the important thing is to gradually regulate the relative figures.

“We need to gradually reach the point that GDP-state debt ratio will stabilize or will decline to some extent since over the past years we face a very sharp increase. The more we can reduce the ratio, the calmer environment we will have. On the other hand, we know that we need to borrow a certain amount of debt to have an economic growth. In other words, if we are able to reach the point that our economy grows faster than debt, it means that we run normal policy. We must pay attention to this”, the Finance Minister stated.

According to him, state debt-GDP ratio must stabilize at the expense of GDP growth. He said the right policy is to borrow a debt and serve it for capital expenditures, as well as to make efforts to certainly revise the expenses to increase the productivity of the economy.