Armenian Finance Minister Unveils 2024 Defense Expenditures, Allocated at $1.4 Billion
Armenia's Finance Minister, Vahe Hovhannisyan, has disclosed the proposed defense expenditures outlined in the 2024 budget, earmarking 554 billion drams ($1,383,884,244) for defense purposes. This announcement came as part of the ongoing debates in parliament regarding the upcoming state budget for the fiscal year.
Minister Hovhannisyan emphasized that the 554 billion drams designated for the Ministry of Defense in 2024 represent a seven percent increase in defense spending compared to the previous year. Despite the augmentation in nominal terms, he clarified that the defense spending as a percentage of the Gross Domestic Product (GDP) is expected to decrease marginally from 5.6% in 2023 to 5.3% in 2024.
Addressing queries about the dip in defense spending relative to GDP, Minister Hovhannisyan clarified during the parliamentary session, "When we say it has decreased by 0.3 percent against the GDP, it doesn’t imply a reduction in allocated funds. Rather, it indicates that our revenue growth surpasses the rate of increase in expenditures allocated for the defense sector."
The minister's statement highlights the government's efforts to balance the allocation of resources for defense while considering the broader economic landscape and revenue growth projections for the upcoming fiscal year.
The disclosure of the defense budget allocation comes amid a backdrop of strategic planning and national security considerations for Armenia. The increase in defense spending signals the country's commitment to fortifying its defense capabilities, albeit within the context of managing fiscal priorities and ensuring financial sustainability.
The parliamentary debates surrounding the 2024 state budget shows the careful deliberation and scrutiny of financial allocations across various sectors, including defense, as the government aims to strike a balance between meeting security imperatives and promoting economic stability and growth.
As discussions on the budget continue, the specifics of how the allocated funds will be utilized within the defense sector are anticipated to be further explained, outlining key areas of focus and strategic priorities in Armenia's defense strategy for the upcoming fiscal year.
