After revision of Armenia's draft budget for 2025, the projected GDP will decrease by 158 billion drams (about $405 million). This was announced by the head of the Ministry of Finance Vahe Hovhannisyan in the Armenian Parliament on Tuesday.
As a result, GDP is forecasted at AMD 10.89 trillion (instead of the previous AMD 11.05 trillion). The authorities also worsened economic growth forecasts - from 5.6% to 5.1%.
As for the budget revenues, they will amount to 2.837 trillion drams, which is 35.5 billion drams less compared to the initial figure. Budget expenditures will amount to RD$3.441 trillion.
“Budget expenditures are reduced by RD$40.8 billion. This is mainly due to the reduction of micro reserves designed to manage the possible risk of GDP decline,” Hovhannisyan noted.
On the other hand, the volume of the government's reserves is to increase by AMD 3.3 billion.
The budget deficit will amount to 5.5% of GDP, or about AMD 604 billion (decreased by AMD 5.4 billion).
The Minister also informed that the expenditures on health care have been increased by 3.5 billion drams. This is conditioned by preparations for the introduction of compulsory medical insurance.
Hovhannisyan explained that the changes are conditioned by the revision of GDP estimates.
Reprinted from https://am.sputniknews.ru/
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