Republic of Armenia : Selected Issues.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Middle East and Central Asia Dept.

Series:

IMF Staff Country Reports; Country Report ; No. 2025/324

IMF Staff Country Reports

Language:

English

Physical Description:

1 online resource (21 pages)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2025.

Summary:

This Selected Issues paper evaluates the effectiveness of Armenia’s fiscal framework, with a specific focus on the design and implementation of fiscal rules. Armenia's existing fiscal framework has been effective, but further improvements are necessary to align with international best practices and support the fiscal consolidation outlined in the 2026–28 Medium-Term Expenditure Framework. Key policy recommendations focus on improving the countercyclicality of fiscal rules, such as upgrading the expenditure rule with forecast error adjustments and incorporating structural deficit targets into the balanced budget rule. Simplification is also essential, replacing complex rules with a clearer, more monitorable set, and establishing transparent, well-defined escape clauses to manage economic shocks while preserving discipline. Furthermore, enhancing transparency through legally mandated reporting and consolidating rules in unified legislation is crucial. The framework's coverage should be broadened to include off-budget entities and contingent liabilities. Finally, strengthening enforcement via statutory codification and enhancing institutional oversight, potentially through an independent fiscal council, will bolster the rules' credibility and accountability, supporting Armenia's public finance resilience.

Notes:

Description based on print version record.

ISBN:

9798229033329