We do not borrow for current expenditures like salary and pension increases: Pashinyan

During the discussion of the 2022 state budget execution report, Armenian Prime Minister Nikol Pashinyan addressed the issue of public debt indicators. He stated that the government would be satisfied if the public debt ratio to GDP remains below 60% by 2026.

Pashinyan noted that as of 2022, the debt-to-GDP ratio stands at 46.7%, compared to 58.9% in 2017. “In terms of debt assessment, I want to emphasize that the nominal debt has increased. Moreover, it has increased for understandable reasons, as we have credit programs, and the management of COVID required substantial resources, which also increased external debt at that time,” he said.

The Prime Minister also highlighted that the government spends debt only on capital purposes: “We do not borrow to cover current expenditures such as salary and pension increases.”

Pashinyan also discussed inflation rates, indicating that a certain stabilization is being observed. “As of April, inflation has returned to the projected and planned indicators set in the budget, and we hope that this dynamics will be maintained,” he concluded.