New tax code to help reduce Armenia’s budget deficit by 1.5-2%
The new Tax Code will help cut Armenia’s budget deficit by 1.5%-2%, according to Chief of IMF Mission to Armenia Mark Horton.
Speaking at a news conference on Friday Horton said the new Tax Code provides for the introduction of a stable tax system, aimed at ensuring a stable medium-term revenue collection, which is important in terms of capital investments, including in social programs.
According to him, it will also help reduce the ratio of budget deficit to GDP from the current 3.5% to 2%. According to the IMF official, the new tax system in the medium term will also help reduce the public debt that has grown substantially in recent years.
According to official data, first half budget deficit amounted to about 52 billion drams. Also 549.7 billion drams were collected as budget revenues while the spending was 605. 9 billion drams.
The 2015 budget revenues are planned in the amount of 1 trillion and 191 billion drams. The projected spending is 1 trillion and 305 billion drams or 26.82% of GDP. The projected deficit is 114 billion drams or 2.34% of GDP.
Armenia’s total public debt by the end of July 2015 stood at $4.722.9, an increase of 6.3% from the beginning of the year. The external debt of the government stood at $4.024.4, an increase of 0.96% from June. ($1 – 474.62 drams). --0--