After the economic crisis of 2020, the Armenian government continues to increase the country’s public debt, bringing to $ 9.5 billion, writes News.am.
Only in 2021, the Armenia public debt increased by $ 1.3 billion or 16%, and GDP increased only by 5.7%. Over 4 years, Armenia public debt increased by $ 2.7 billion or 39.3%.
Only in January-May of this year, the public debt increased by $ 354.7 million. An increase in the indicator was carried out due to the growth of internal debt, the maintenance of which costs the budget more expensive than external. In 2022, the external debt of Armenia decreased, and the internal debt increased.
In May 2022, 62.9% of the indicator accounted for external debt and 37.1% for internal debt. In December 2021, 66.9% of the public debt of Armenia was external debt and 33.1% – internal debt.
The growth of internal debt has a negative impact on the volume of investment in the country.
In January-May 2022, the tax revenue indicator was 6.6% (761.8 billion drams) above the planned, and compared to the indicator of the same period of the previous year by 23.2%. In fact, the growth of tax revenues was recorded at the expense of unprecedentedly high inflation.