The drafts of the state budget for 2022 and 2023 are based on the principle of provision of macroeconomic stability, said Armenian Minister of Finance Tigran Khachatryan on Wednesday during the discussion of 2023 state budget draft at the sitting of National Assembly of Armenia.

He explained what macroeconomic stability is in terms of fiscal policy and, particularly, the principles of applying the law on state budget. First of all, it means that the authorities should substantially increase tax revenues.

This, in particular, is stipulated in the program of activities of the Government. This approach is exactly the guarantee that will provide reliable funding for government programs in the medium term, said the minister.

According to him, the program of government activities for 2021-2026 provides for a large-scale increase of the ratio of tax revenues to gross domestic product. So, in 2026, the authorities, according to the plan, will have to reach 25% of tax revenues in relation to GDP.

Moreover, the capital expenses planned by the draft of the state budget for 2023 will also increase significantly.

Khachatryan noted that they will amount to approximately AMD 548bln, which will exceed the previous year's capital expenses by 49%. Thus, capital expenditures will reach 5.9% of GDP, which is 1.5% more than in 2022.

This level is expected to be maintained in the coming years, which is already high. ¾ of all capital expenditures will be used to finance defense infrastructure, as well as security, he added.