YEREVAN. – There are several main principles that impacted the formation of Armenia’s state budget for 2018.
Gagik Minasyan, Chairman of the Standing Committee on Financial-Credit and Budgetary Affairs of the National Assembly, noted the aforesaid.
In his words, however, these principles are somewhat different than those of “traditional budgets.”
“Due to long and unfavorable external conditions over the last few years, we [Armenia] had to borrow a certain amount of foreign loans to encourage domestic producers and consumers, as well as to prevent reduction in social spending,” noted Minasyan.
He said the government has noted that the permitted amount of external debt increase of Armenia is 60 percent of the country’s GDP. Minasyan added that Armenia has almost reached this permitted amount, and this explains the makeup of the 2018 State Budget.
Furthermore, he stressed that there is no inflation in the country for almost two years, but rather there is deflation, which shall be about 1.5 percent next year.