At April 27 sitting of the NA Standing Committee on Financial-Credit and Budget Affairs, the reference on the execution process of the state budget of nine months for 2020 was debated.
The Chairman of the Committee Arkadi Khachatryan tried to find out from the RA Acting Minister of Finance Atom Janjughazyan in Q & A format what steps are carried out by the Government in the fiscal policy directed to the reduction of the Government debt from 60%, compliance with budget rules, reduction of deficit of volumes, increase of the capital expenditures and regulation or restriction of the growth of current expenditures in the upcoming period of time. As a result of the placement and issue of Euro bonds, we have an abrupt increase of the Government debt in the previous year and this year too. As results of the year, it will be almost 70% of GDP,” Khachatryan said.
“The Government has such obligation by the legislation. We have not already completed the designing of the framework, but we are in the phase of implementing it. According to our forecasts, we should implement fiscal consolidation until 2026 by the logic that it will be possible to reduce the component of the Government debt from 60% by the GDP ratio,” the Acting Minister clarified. It should be on the way of the growth of current expenditures, ensuring higher level of manageability, increasing of the investments directed to the capital infrastructure programs and increasing the growth of economic potential.