An analysis of Armenia’s fiscal policy clearly shows that it remains technical rather than strategic. This is the view of David Ananyan, former Chairman of the State Revenue Committee.
According to him, the current system ensures discipline and transparency but does not serve as a tool for economic growth or structural transformation. “In other words, our budget merely counts but does not develop. The current system maintains order but does not create new opportunities or growth,” he emphasized.
Another significant issue, as Ananyan pointed out, is that fiscal policy lacks predictable rules and countercyclical flexibility. As a result, the budget remains procyclical, failing to mitigate economic downturns and, in fact, exacerbating them. “The state’s purse should work for us, not against us. But today, instead of cushioning crises, it often aggravates them,” he explained.
Ananyan also noted that tax policy is disconnected from the fiscal framework and does not stimulate economic development. There is a lack of optimal distribution of the tax burden, effective incentives, and a connection between the quality of tax administration and economic outcomes. “In reality, the tax system is barely linked to the lives of people and businesses. There is no fair burden, no incentives for investment or labor,” he stated.
In conclusion, Ananyan stressed the need for a new design: fiscal policy must become a tool of economic strategy, and the tax system should be structured to simultaneously ensure stable state revenues, encourage new investments, and guarantee social justice. “Taxes and the budget must serve three goals: stable revenues for the state, new investments for the economy, and fairness for society,” David Ananyan emphasized.