At today's session of the Armenian government the draft state budget of 2018 was approved.

Presenting the macroeconomic forecast for the next year's government, RA Minister of Finance Vardan Aramyan noted that the government has raised the index of economic growth in its predictions.

"By the 2017 budget, we fixed 3.2 percent economic growth, but the economic activity index, which is currently 5.5 percent, and all sectoral developments indicate that our economic growth will be within the range of 4-4.8 percent. And on this basis we have raised the current expectations of 4.3% this year. Thus, we forecast a 4.5% economic growth next year, "the Finance Minister said.

Vardan Aramyan said that in 2018 plans to increase current expenditures within the range of 2.2-2.5%. Instead, according to him, the government emphasizes capital expenditure.

"We need to make an economic growth of 5 and above, so we need to build its bases," the minister said, adding that last year's budget will also increase funding for the defense sector.

Thus, capital and defense expenditures have been raised, in particular, 175 billion drams will be spent on capital expenditures, instead of 95 billion in 2017, and defense expenditures - 246.8 billion drams - 37 billion drams instead of 209.8 billion this year.

Vardan Aramyan also said that the government is adopting a more conservative approach to budget expenditures. The draft budget for the next year envisages the collection of 1 trillion 247.9 billion drams of tax revenues.

The state budget expenditures for 2018 will amount to 1 trillion 464.2 billion drams, capital expenditures - 175 billion. As for the deficit, the government will be restrained. The GDP deficit is projected at 2.7% and it will be 156.9 billion drams.

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