After the economic crisis of 2020, the government of Armenia continues to increase the national debt of the country up to $9,5 billion.

The efficiency of spending of these funds raises concerns.

In 2021 alone, Armenia's state debt increased by $1.3 billion, or 16%, while its GDP grew by only 5.7%. The current authorities have increased Armenia's state debt by $2.7 billion or 39.3% over the past four years.

Only in January-May of this year, the state debt increased by 354.7 million dollars. The increase was carried out due to the growth of the internal debt, the servicing of which is more expensive for the budget than the external one. In 2022, Armenia's foreign debt decreased, while the domestic debt increased.

In May 2022, 62.9% of Armenia's national debt was external debt, and 37.1% was domestic debt. In December 2021, 66.9% of Armenia's public debt was external debt, and 33.1% was domestic debt.

The growth of domestic debt has a negative impact on the amount of investment in the country.

In January-May 2022, tax revenues were 6.6% (761.8 billion AMD) higher than planned, and 23.2% higher compared to the same period of the previous year. In fact, the growth of tax revenues was recorded due to the unprecedented high inflation.

 

Aram Achemyan