Republic of Armenia - Fiscal Consolidation and Recovery : Background Papers

Republic of Armenia - Fiscal Consolidation and Recovery : Background Papers

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...

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Bibliographic Details
Main Author:	World Bank
Format:	Other Public Sector Study
Language:	English
Published:	World Bank 2012
Subjects:	ACCOUNTING ACCOUNTING RULES ADDED TAX ADVANCE PRICING ADVANCE PRICING AGREEMENT AMORTIZATION AMOUNT OF DEBT AUDITS CAPITAL COSTS CAPITAL GAINS CAPITAL GAINS TAXES CAPITAL INVESTMENT CAPITALIZATION CASH FLOW COMMODITY COMMODITY PRICE COMMODITY PRICES COMPANY TAX CONSUMPTION EXPENDITURES CORPORATE PROFIT TAX COST OF CAPITAL CURRENCY DEBT DEBT FINANCING DEBT LEVELS DEDUCTIONS DEPOSIT DEPOSITS DIVIDEND DIVIDENDS DOMESTIC MARKET DOUBLE TAXATION ECONOMIC GROWTH ECONOMIC RECOVERY EMPLOYMENT TAXES EQUIPMENT EXCESS PROFITS TAX EXCHANGE RATE EXCHANGE RATES EXCLUSION EXPENDITURE EXPENDITURES EXPORT EXPORT MARKET EXPORT SECTORS EXPORTS FINANCIAL PERFORMANCE FINANCIAL STATEMENTS FINANCIAL TRANSACTION FISCAL CONSOLIDATION FIXED RATE FOREIGN EXCHANGE FOREIGN INVESTORS FOREIGN OWNERS GOVERNMENT EXPENDITURES GOVERNMENT FINANCE GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROSS DOMESTIC PRODUCT HARMONIZATION HEALTH SPENDING HUMAN RESOURCE IMPLICIT TAX INCOME INCOME FLOW INCOME TAX INCOME TAXES INCOMES INDEBTEDNESS INFLATION INSTRUMENT INTEREST EXPENSES INTEREST PAYMENTS INTEREST RATES INTERNAL RATE OF RETURN INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL INTEREST INTERNATIONAL STANDARDS INVENTORIES INVESTMENT DECISION INVESTOR PERSPECTIVE JUDGMENTS JURISDICTION JURISDICTIONS LAND USE LEGAL FRAMEWORK LEVY LICENSES LLC LOAN MARKET PRICE MARKET PRICES MONETARY FUND NATURAL RESOURCE NATURAL RESOURCES OUTPUT POINT OF SALE POLICY RESPONSE PRIVATE INVESTORS PRIVATE SECTOR PRIVATIZATION PROGRESSIVE TAX PUBLIC PUBLIC EMPLOYMENT PUBLIC EXPENDITURE PUBLIC EXPENDITURE REVIEW PUBLIC EXPENDITURES PUBLIC SECTOR PUBLIC SECTOR EMPLOYMENT PUBLIC SERVICE PUBLIC SPENDING RATE OF RETURN REGRESSIVE TAX RENTS RESERVES RETURNS REVENUE COLLECTION ROYALTIES ROYALTY SAVINGS SINGLE TAX TAX TAX ADMINISTRATION TAX ASSESSMENT TAX ASSESSMENTS TAX AVOIDANCE TAX BENEFITS TAX CODE TAX COLLECTIONS TAX DEDUCTION TAX FREE TAX LAW TAX LEGISLATION TAX LIABILITIES TAX PAYER TAX POLICY TAX PROVISION TAX PROVISIONS TAX RATE TAX RATES TAX REFORM TAX REGIME TAX RETURNS TAX REVENUE TAX RULES TAX SYSTEM TAXATION LEGISLATION TAXPAYER TAXPAYERS TRANSACTION TRANSFER PRICING TURNOVER UNIVERSAL ACCESS VARIABLE RATE VERTICAL INTEGRATION WITHHOLDING TAX WITHHOLDING TAXES WORLD MARKET
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333038_20111214222420 http://hdl.handle.net/10986/2808

Description
Summary:	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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