Higher-than-projected revenues enabled pension increase, finance minister says

Finance Minister Vahe Hovhannisyan has attributed the Armenian Government’s ability to raise pensions in 2026 to higher-than-projected revenues and improved tax collection.

Opposition MP Edgar Ghazaryan questioned how the Government had managed to raise pensions in 2026, given that during previous budget discussions its representatives had said there were no financial resources available for such an increase.

In response, Hovhannisyan explained that the state budget is drawn up based on the economic and tax forecasts available at the time. According to him, the assessments made in September 2025 did not allow for a pension increase, but the actual results for the year turned out to be better.

“When we had higher revenues and stronger economic growth based on the actual results for 2025, it was already clear to us that 2026 revenues would be at least AMD 45–50 billion higher than we had planned. This was already clear to us at the beginning of the year,” the minister said during a joint parliamentary committee hearing on the 2027 state budget bill.

He said the additional revenues had made at least half of the funding needed for the pension increase available. Subsequent economic developments and the pace of tax collection also allowed the Government to use the macroeconomic risk reserve, which is intended to cover potential revenue shortfalls.

The minister also reported that the economic growth forecast for 2026 had been revised upward from 5.4% to 5.6%. He said that if actual growth and tax revenues exceed projections, the Government will decide how to allocate the additional funds.