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Armenia PM: Tax Revenues in 2022 Surge by 66.35% Compared to 2017, 53% Compared to 2018

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BNN Correspondents
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Armenia's Economy Booms with Unprecedented 12.6% Growth in 2022, Record Tax Revenues Collected

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Image Credit: News.Am

Armenia experienced an extraordinary economic growth rate of 12.6% in 2022, marking the highest recorded indicator in the past 15 years. This substantial growth led to tax revenues surpassing expectations, totaling 1 trillion, 926 billion drams for the 2022 state budget. Prime Minister Nikol Pashinyan attributed this success to a combination of economic growth, reduced shadow economy, and effective government reforms.

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Unprecedented Economic Growth in Armenia

Armenia's economy witnessed a remarkable surge in 2022, registering an unprecedented growth rate of 12.6%. This impressive achievement surpassed all expectations and demonstrated the resilience and potential of the country's economic landscape. With a growth rate unseen in the past 15 years, Armenia solidified its position as a rising economic force in the region.

Surpassing Tax Revenue Projections

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The positive economic growth translated into a significant increase in tax revenues, exceeding the initial projections. The tax revenues for the 2022 state budget reached an impressive 1 trillion, 926 billion drams, surpassing the original plan by 4%. This surplus of 82 billion drams served as a testament to the strength of Armenia's economy and its ability to generate substantial government income.

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"In other words, when the NA adopted the 2022 budget in December 2021, the revenue part was planned to be 82 billion dram less. But I also want to emphasize that the 2022 budget indicators are 399 billion drams or 21.4 percent higher than 2021 in terms of tax revenues. Compared to 2017, tax revenues in 2022 are more by 2 billion 20 million drams or 66.3 percent, and compared to 2018—by 670 billion drams or 53 percent," Pashinyan explained.

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Factors Behind the Revenue Surge

Prime Minister Nikol Pashinyan identified three key factors that contributed to the remarkable increase in budget revenues. First and foremost was the impressive economic growth itself, which played a vital role in boosting tax revenues. Additionally, the government's efforts to combat the shadow economy, an underground sector that avoids taxation, proved fruitful in capturing previously unaccounted revenues. Lastly, the successful implementation of reforms by the Armenian government fostered an environment conducive to economic expansion and revenue generation.

The Prime Minister highlighted the record-breaking tax revenue collected in April 2023, amounting to 296.8 billion drams. This achievement marked the highest monthly collection of tax revenue in Armenia's history. Comparing it to previous years, the difference was striking, with April 2018 only witnessing tax revenues of 126 billion drams, showcasing a significant increase over time.

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(Read Also: Armenian Prime Minister Addresses Tense Politico-Military Situation in the Region)

Reflecting on the first four months of the year, Pashinyan noted that the budget received more funds during this period than in any single year between 2000 and 2010. This highlights the sustained growth and positive trajectory of Armenia's economic landscape, setting the stage for a prosperous future.

In conclusion, Armenia's economy soared in 2022, experiencing unprecedented growth and surpassing all expectations. The remarkable increase in tax revenues demonstrated the country's economic resilience and the government's effective policies. With a booming economy and record-breaking tax revenue collections, Armenia positions itself as an emerging economic force in the region.

EconomicGrowth recordbreaking ArmenianEconomy EmergingEconomy TaxRevenues
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