2 minute read
The Parliamentary Committee on Financial-Credit and Budgetary Affairs approved the 2026 state budget bill presented by the government. The bill will be debated in the upcoming plenary session of parliament.
Minister of Finance Vahe Hovhannisyan presented the bill to lawmakers.
The government forecasts that Armenia’s gross domestic product will reach AMD 11.934 trillion in 2026, reflecting an economic growth rate of 5.4%.
“State budget revenues are projected at AMD 3.091 trillion, of which tax revenues will amount to AMD 2.973 trillion. As a result of improvements in tax administration, measures to combat the shadow economy, and other tax policy initiatives, the tax-to-GDP ratio is expected to improve by 0.4 percentage points, reaching 24.9% of GDP,” Hovhannisyan said.
State budget expenditures for next year are projected at AMD 3.628 trillion, of which current expenditures will amount to AMD 2.924 trillion and capital expenditures to AMD 704 billion. This will represent 5.9% of GDP. Overall, expenditures will account for 30.4% of GDP, down 0.8 percentage points from the expected 2025 level.”
The deficit is projected at AMD 537 billion, or 4.5% of GDP, down 1 percentage point from this year’s 5.5% deficit. In the medium term, the government aims to reduce the deficit to 2.8% of GDP to keep the debt-to-GDP ratio at a manageable level.
“If our expectations unfold as planned, the debt-to-GDP ratio will be around 53%,” Hovhannisyan noted.