From now on have started the debates about the 2018 State Budget projects of the Republic of Armenia at the RA NA Standing Committees. The head of government Karen Karapetyan expressed hope that they will be effective.

"We express our readiness to discuss open, public, constructive and optimal solutions to all issues. I am convinced that as a result of the discussions, we will have the budget for the year 2018, which will best represent the interests of our country and its citizens and will help to implement our development programs, "the Prime Minister said.

Karen Karapetyan underlined that taking into account the government's plans for 2017-2022, the budget of 2018 has drafted amendments to fiscal policy approaches. "In the mid-term horizon, though fiscal politics will continue to be limited to the need for debt sustainability, the fiscal policy will be revised by reviewing the expenditure structure, focusing on the need for capital expenditure to secure sustainable growth."

The prime minister emphasized several provisions underlying the draft budget.

"First of all, in the last few years, Armenia's economy is characterized by negative shocks penetrating from the outside world, resulting in a low level of economic growth and, in this way, reducing the potential for economic growth. The current developments are encouraging, but the bases for economic growth are not yet strong enough to claim a long-term high economic growth, "the Prime Minister said.

According to him, in 2017 a budgetary framework, which characterizes the stabilization of the economic situation, was confirmed. As regards the budgetary framework of 2018, Karen Karapetyan mentioned that by the latter they have planned such a fiscal policy that will determine the future economic developments.

"In other words, the proposed fiscal policy will create grounds for the future to provide an average of 5% economic growth, which will enable us to more effectively solve the problems we face either in terms of sustainable long-term development or social character. The achievement of this indicator will require a lot of effort and extensive work from us, "he said.

The second point, according to the prime minister, is that the state budget expenditure policy will be based on clear rules which focus on the economic growth, the country's security, and social orientation.

"This policy will ensure the level of attractiveness of the country, forming a solid foundation for sustainable, long-term and secure development. Thirdly, our income policy will be balanced both from for the reduction of shadow economy and for improving the business environment. Here it is important to lay the foundations for effective revenue systems that will ensure steady progress in tax revenues from GDP growth, "added Karen Karapetyan.

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