The Armenian government plans an average of 5.3% economic growth in 2018-2020. The executive approved the state medium-term expenditure program for 2018-2020, which predicts the economic indices of the coming years. Particularly, expected average growth of 5.3% of GDP in the medium term will be mainly due to services and industry branches. It is projected to be 3.3 percent for 2017 and 4.7, 5.4 and 5.7 percent respectively in 2018-2020. The contribution of services and industries to the average GDP growth will be 2.3 and 1.4 percentage points, respectively.
RA Minister of Finance Vardan Aramyan noted that the introduction of medium-term public expenditure planning system aims to solve the following problems: to improve macroeconomic balance forming a realistic and comprehensive package of resources, to promote inter-sectoral and intra-sectoral redistribution of budget allocations at the expense of state finances, to minimize the existing uncertainty between policies and their funding improving the quality of project development by setting strict budgetary limitations for sectoral ministries (agencies) and creating conditions and incentives for targeted and effective use of available resources, improving budgetary appraisal system and increasing the transparency of public finance management.
"Medium-term government expenditure planning is a continuous process and, in essence, is a logical chain of " policy formulation - planning and budgeting ". It provides an opportunity to alleviate the potential discrepancy between available budgetary resources and the required costs, as well as make adequate changes to public policy changes of public spending", Aramyan said.

The program expects that the ratio of state budget revenues to gross domestic product in 2018-2020 will range from 23.4 to 23.6 per cent and 22.8 to 23.3 per cent of revenues generated from internal resources. Based on the actual budget revenue forecast, the government plans to maintain the average annual level of expenditure within 26.1-25.7% of GDP for 2018-2020.

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