Evaluating Armenia’s Fiscal Framework
Selected Issues Papers, December 30, 2025
Source details
- Canonical URL
- Evaluating Armenia’s Fiscal Framework
Other formats
Bibliographic details
- Authors: Masud Al Taj, Nazim Belhocine, Vahram Janvelyan, Ervin Prifti
- Published: December 30, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229033732.018
Summary findings
- The paper evaluates Armenia’s fiscal framework, focusing on fiscal rule design and implementation.
- Despite the 2018 reforms strengthening the Armenia’s fiscal rules, limitations persist: rules are somewhat procyclical and complex, ex-post enforcement is not legally binding, coverage is restricted to central government, and operational flexibility is limited.
- Armenia’s fiscal rules have served the country well, but further improvements could be considered.
Limitations and design weaknesses
- Rules are somewhat procyclical and complex.
- Ex-post enforcement is not legally binding.
- Coverage is restricted to central government.
- Operational flexibility is limited.
Recommended reforms and policy options
- Upgrade fiscal rules to improve countercyclicality.
- Simplify rule design.
- Broaden coverage beyond the central government.
- Strengthen transparency and enforcement mechanisms.
- Consolidate expenditure rules.
- Formalize escape clauses.
- Expand coverage.
- Empower independent oversight.
Content in this bundle
- 1. Fiscal Rules