The government has approved the draft budget 2017.
Prime Minister Karen Karapetyan announced that expenses have been curtailed by 100 billion drams.
The minister of finance Vardan Aramyan said the most important principle which has been laid down in the next year’s budget is tax and debt stability. According to the minister, in 2014-2015 the deficit was high at 4.8%. This year the deficit will most probably be 5.9%. As a result the foreign debt to GDP ratio has increased.
“This is a permanent source of debt. Our debt exceeded 43.7% in 2014-2015 and at the end of this year it will rise to 54.4%. Definitely, in the following months we must be conservative not to allow an extra growth of debt,” the minister of finance announced.
Hence, the government cuts expenses in the next year’s budget. The expenses are 1.36 trillion drams, the deficit will be 2.8%.