The “LOUIS” foundation analyzed the budget performance of the Republic of Armenia for 2023 in relation to the implementation of state programs. Despite budget cuts, external organizations that contribute to the country’s economy have continued to grow, resulting in new positive trends that surpass previous economic projections. In 2022, the country’s economic growth reached 8.7%, while the budget allocation foundation grew 7.0%. By 2023, the budget allocation foundation had increased to 7.4% due to decreased public debt/GDP ratio and increased government spending. However, the decline in the growth rates of the gold industry between November and December had a significant impact on the overall economic growth. It is important to note that this trend is influenced by temporary external factors that may have a negative impact in the future.

The growth rate of taxes/GDP has increased from 22.7% to 23.4%, despite a decrease in the overall tax burden of individuals and individual entrepreneurship. The banking system, specifically the growth in assets and the paid asset tax in 2022, contributed to this increase. However, the growth of assets did not continue in the same manner in 2023, potentially affecting short- and medium-term growth in other sectors of the economy. Capital expenditures saw positive growth primarily due to economic development programs, such as infrastructure construction, rural development projects, and research in national and technological security. These programs have seen growth rates exceeding 10%, and in some cases, even 20-30%. This trend reflects the positive outcomes from planned economic development programs.

Despite the increase in government debt, the government’s obligation/NDS ratio has also increased. This is mainly due to higher external borrowing compared to the allocated government allocation, the depreciation of the Armenian dram against the US dollar, and an increase in the real interest rate. However, the government’s debt burden has been reduced, thanks to economic growth and a decrease in public debt. The registration of civil activities for significant programs, such as infrastructure projects, urban development, and scientific research, has also been recorded. Some of these programs have exceeded 20-30% of their planned implementation. These trends highlight the need to address personal negative trends resulting from unplanned economic development programs.

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