Republic of Armenia - Fiscal Consolidation and Recovery : Background Papers

World Bank

Republic of Armenia - Fiscal Consolidation and Recovery : Background Papers

2011

World Bank

Armenia's structural reforms since 1999 have led to a strong economic record, including low fiscal deficits and declining public debt over the pre-crisis decade. Between 2001 and 2008 Gross Domestic Product (GDP) grew at an average annual rate of 12 percent and poverty fell from over 50 percent to about 28 percent of the population. Over this period of rapid growth, prudent fiscal management contained fiscal deficits between 0 and 2.5 percent of GDP and helped to reduce public debt from 49 percent to 16 percent of GDP. This fiscal headroom allowed the Government to respond to the crisis with an appropriately large fiscal stimulus. When GDP contracted by more than 14 percent in 2009 and total revenues fell sharply, nominal public spending was increased by 13 percent to shore up the domestic economy and protect the poor and vulnerable. Despite the severity of the crisis, the Government maintained a sound macroeconomic framework while continuing to undertake social protection expenditures to mitigate the impact of the crisis on the most vulnerable people. This was done by securing sizable external financing. The fiscal deficit rose to 7.8 percent of GDP in 2009 and the public debt to GDP ratio rose from 16 percent in 2008 to 40.2 percent. Efforts at fiscal consolidation reduced the fiscal deficit to 5.6 percent of GDP in 2010, but public debt is projected to reach 42 percent of GDP in 2011.The report is in two volumes: a synthesis volume and a background volume. The synthesis volume summarizes the macroeconomic context of Armenia (chapter one), analyzes the recent debt dynamics and its implication for fiscal consolidation (chapter two, then assess the revenue potential the Government can tap (chapter three) while ensuring key growth-sustaining and poverty-reducing expenditures are maintained (chapter four). The background volume provides more details on the assessment of the tax potential of the mining sector (chapter one), and thoroughly analyzes the efficiency of spending on the public sector wage bill (chapter two), health (chapter three) and education (chapter four).

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AGROVOC Keywords

accounting cash flow debt economic growth economic recovery equipment exchange rate expenditure export exports gross domestic product income income tax indebtedness inflation instrument interest rates inventories jurisdiction land use levy market prices natural resources private sector privatization public expenditure public sector returns royalties savings vertical integration

Bibliographic information

Publisher

World Bank

Other Subjects

Tax; Debt levels; International financial statistics; Exchange rates; Policy response; Export sectors; Public spending; Tax system; Currency; Tax policy; Taxpayer; Output; Reserves; Advance pricing agreement; Loan; Tax returns; International interest; Exclusion; Dividend; Point of sale; Fixed rate; Employment taxes; Tax provisions; Tax rules; Tax liabilities; Advance pricing; Public; Public sector employment; Deductions; Tax free; Cost of capital; Tax reform; Added tax; Debt financing; Domestic market; Tax legislation; Investment decision; Public employment; Foreign investors; Tax deduction; Foreign exchange; Taxpayers; Turnover; Dividends; Income flow; Double taxation; Withholding tax; Government finance; Tax provision; Tax revenue; Expenditures; Internal rate of return; Public expenditure review; Deposits; Private investors; Single tax; Amortization; Legal framework; Tax rates; Jurisdictions; Income taxes; Monetary fund; Health spending; Interest payments; Tax administration; Capital investment; Harmonization; Tax code; Financial statements; Capitalization; Taxation legislation; Tax law; Financial performance; International standards; Universal access; Revenue collection; Government spending; Tax payer; Tax benefits; Capital gains; Tax regime; Tax rate; Incomes; Regressive tax; World market; Natural resource; Excess profits tax; Judgments; Accounting rules; Llc; Human resource; Market price; Transaction; Public service; Audits; Withholding taxes; Interest expenses; Consumption expenditures; Investor perspective; Progressive tax; Tax assessments; Capital gains taxes; Licenses; Transfer pricing; Implicit tax; Rate of return; Rents; Corporate profit tax; Tax avoidance; Royalty; Company tax; Tax collections; Export market; Capital costs; Financial transaction; Commodity price; Variable rate; Deposit; Public expenditures; Commodity prices; Commodity; Amount of debt; Tax assessment; Government investment; Government expenditures; Fiscal consolidation; Foreign owners

Language

English

Format

application/pdf, text/plain

License

CC BY 3.0 IGO, http://creativecommons.org/licenses/by/3.0/igo/, World Bank

In AGRIS since: 2024-10-18

Modification date: 2025-05-23

Format: Dublin Core

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