Finance Minister unveils 3-year capital spending plan

The Armenian government’s capital expenditures are projected at 704 billion drams in 2026, 719 billion drams in 2027, and 803 billion drams in 2028, Finance Minister Vahe Hovhannisyan told lawmakers at a joint parliamentary committee debate of the 2026 budget bill.

“Capital expenditures allocated to Armenia’s economic and social sectors in 2026 will exceed the level set in the 2025 state budget by more than 22%. In 2026, these expenditures will amount to 3.4% of GDP, while in 2027 and 2028, they are projected at 3.2% and 3.6% of GDP, respectively,” Hovhannisyan said.

He noted that the main increase in social spending is due to the rise in the number of registered employees in the country, as state contributions to the funded pension system are also increasing.

“The social protection expenditures in 2026 will amount to about 993 billion drams, and in 2027 and 2028, they will reach 1.062 trillion and 1.123 trillion drams, respectively,” the minister said.

Due to the introduction of the health insurance system, healthcare expenditures in 2026 will amount to approximately 211 billion drams, and in 2027 and 2028, they are projected to reach 240 billion and 249 billion drams, respectively. “The 2026 figure will exceed the healthcare expenditures set in the 2025 state budget by 26.6%,” Vahe Hovhannisyan said.

In 2026, 43% of capital expenditures will be allocated to the defense sector. Spending on education will amount to 356.4 billion drams in 2026, and 298 billion and 321 billion drams in 2027 and 2028, respectively. Expenditures for sectors overseen by the Ministry of Territorial Administration and Infrastructure will reach 325 billion drams in 2026, and 334 billion and 365 billion drams in 2027 and 2028, respectively.