Martin Galstyan Presents Conclusion of CB on Budget Draft
“A 7% level of economic growth has been set for 2023 as part of the government’s five-year program aimed at increasing economic potential. The high economic growth predicted for 2023 is based on the significant increase in the share of key investments, including state investments, and the formation of stable foundations for export growth, which are necessary to ensure the growth of productivity and competitiveness. Therefore, the provision of economic growth will significantly depend on the implementation of large state investments in infrastructures, in the specified terms and in the programmed proportions by the Government, as well as the full implementation of the measures for the investment and export promotion provided by the program,” the RA CB Governor Martin Galstyan said, presenting the conclusion of the Central Bank on the draft law on the RA State Budget for 2023 at the RA NA regular sitting on November 16.
Referring to the goals outlined by the draft law on the state budget for 2023, the speaker noted that the fiscal policy will continue the implementation of smooth consolidation next year, contributing to the reduction of the debt burden, at the same time combining it with a policy of significant increase in public investment aimed at promoting economic growth. Taking into account the significant progressive growth of demand observed in the current year, especially in the service sector, as well as relatively modest indicators of improvement in the tax-GDP ratio for 2022, the implementation of tax reforms aimed at strengthening the levers for improving tax collection in 2023 and ensuring the potential level of taxes was emphasized, which will contribute to macroeconomic stability by restraining aggregate demand, at the same time forming the necessary resources to ensure the continuity of economic growth.
Concluding his speech, the CB Governor noted that that the implementation of coordinated monetary and fiscal policies is emphasized in the current situation, therefore, it will be necessary to implement a significant restraining fiscal policy in 2023 in order to regulate progressive demand and ensure macroeconomic stability. The speaker stated that the full implementation of reforms and measures aimed at improving budget expenditures, increasing the share of capital expenditures, as well as improving tax collection will form necessary bases in order to increase the GDP-potential level and ensure long-term stable growth.
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National Assembly of the Republic of Armenia