Armenia plans to reduce budget deficit to 2.8% of GDP by 2028

The Armenian government plans to reduce the state budget deficit to 2.8% of GDP by 2028, Finance Minister Vahe Hovhannisyan told lawmakers at a joint parliamentary committee debate of the 2026 budget bill.

“Compared to 2025, we have adopted a fiscal consolidation policy, and in the coming years—through 2028—we plan to reduce the deficit to 2.8% of GDP. In 2025, this indicator stood at 5.5%. The goal is to maintain stability, prevent an increase in debt servicing costs and the nominal level of debt, while simultaneously ensuring smooth implementation of investments in economic and human capital as well as our reforms,” Hovhannisyan said.

He stressed that, for the first time, the medium-term expenditure framework in the state budget has been approved not for three years, but for five years, and that the medium-term expenditure program was finalized earlier than in previous years.