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Armenia’s fiscal transparency practices have benefitted from public financial management reforms over the last decade, and several planned reforms will bring further progress. Fiscal forecasts and budgets have become more forward looking and policy oriented, with the introduction of a medium-term expenditure framework (MTEF), improved fiscal objectives, and a performance budgeting system. Fiscal risk disclosure, though fragmented, has gradually improved, in particular, in macrofiscal risk assessment, and a PPP law is being drafted. The accrual accounting reform will significantly improve the coverage and quality of the budget execution reports and fiscal statistics that already provide timely and frequent information about the financial position of the government.

Armenia, Republic of

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The Armenian economy continues to perform strongly, and the outlook is broadly positive. Growth is decelerating gradually to more sustainable levels, as foreign exchange and migrant inflows peter out. Inflation has rapidly declined due to low imported food and energy inflation, Dram appreciation, and tight monetary policy. The uncertain external environment, however, poses sizeable risks, including from a slowdown in main trading partners, geopolitical tensions, and a possible reversal of capital flows.

International agencies --- International Agreements and Observance --- International Economics --- International institutions --- International organization --- International Organizations --- Monetary economics --- Monetary Policy --- Monetary policy --- Money and Monetary Policy --- Armenia, Republic of

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The paper explicitly models the dynamic strategic aspects of the interaction between the migrant and the remittance-receiving relative(s), with the migrant behaving as a Stackelberg leader. It is also different from other formalizations of remittance behavior in its treatment of the two parties' interaction to realize potential gains from exchange. We demonstrate that when the migrant and the relative(s) cooperate to maximize the joint utility of the household, this leads to higher level of remittances as well as investment and hours worked by the relative(s). We use data from Armenia to test our predictions regarding implications of remittances flows on behavior of receiving households. Consistent with our predictions, remittance-receiving households work fewer hours and spend less on the education of their children. While saving more, these households are not leveraging their savings to borrow from the banking system to expand their business activities. This evidence suggests that the benefits of remittances might be overstated and emphasizes the importance of measuring their impact in a general- rather than a partial-equilibrium context.

Emigrant remittances. --- Emigrant remittances --- Households --- Population --- Families --- Home economics --- Immigrant remittances --- Remittances, Emigrant --- Foreign exchange --- Econometric models. --- Exports and Imports --- Macroeconomics --- Emigration and Immigration --- Remittances --- International Migration --- Aggregate Factor Income Distribution --- Education: General --- Macroeconomics: Consumption --- Saving --- Wealth --- International economics --- Migration, immigration & emigration --- Education --- Migration --- Income --- Consumption --- International finance --- Emigration and immigration --- Economics --- Armenia, Republic of

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The Armenian government adopted the Poverty Reduction Strategy Paper (PRSP), and the first years of the PRSP implementation have evidently resulted in the significant reduction of both poverty and extreme poverty. The main focus has been sustainable economic growth, institutional reforms, and poverty reduction targeted policy in individual spheres. The annual budget is fully based on the PRSP ideology and was programmed accepting the priorities set up in the PRSP. The government considers the medium-term expenditure framework as a key mechanism to overcome poverty.

Public Finance --- Social Services and Welfare --- Poverty and Homelessness --- Government Policy --- Provision and Effects of Welfare Program --- National Government Expenditures and Related Policies: General --- Welfare, Well-Being, and Poverty: General --- Education: General --- Social welfare & social services --- Public finance & taxation --- Poverty & precarity --- Education --- Expenditure --- Poverty --- Poverty reduction strategy --- Poverty reduction --- Expenditures, Public --- Armenia, Republic of

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This 2008 Article IV Consultation highlights that Armenia’s recent economic performance has remained strong, and the economy is poised for another year of double-digit growth. Rising inflation, a widening current account deficit, and rapid credit growth have raised concerns about overheating. Executive Directors have commended the authorities for the successful implementation of macroeconomic policies under the Poverty Reduction and Growth Facility (PRGF)-supported program that expired in May 2008. Directors have also welcomed the authorities’ intention to withdraw fiscal stimulus during 2008–09 to address current imbalances.

Exports and Imports --- Foreign Exchange --- Money and Monetary Policy --- Public Finance --- Taxation --- Fiscal Policy --- International Lending and Debt Problems --- Taxation, Subsidies, and Revenue: General --- Debt --- Debt Management --- Sovereign Debt --- Macroeconomics --- Currency --- Foreign exchange --- Public finance & taxation --- International economics --- Monetary economics --- Fiscal policy --- External debt --- Tax administration core functions --- Exchange rates --- Revenue administration --- Debts, External --- Tax administration and procedure --- Debts, Public --- Armenia, Republic of