The government, at its Cabinet meeting Thursday, approved the draft law on the 2026 state budget of Armenia.

Minister of Finance Vahe Hovhannisyan presented the bill, and noted as follows: “According to the draft budget, [Armenia’s] GDP is forecast at 11 trillion 933 billion drams, economic growth is forecast at 5.4 percent, and the GDP deflator is 3 percent. State budget revenues are expected to be 3 trillion 91 billion drams, of which tax revenues are 2 trillion 972 billion drams.

As a result of improving loan administration, combating the shadow economy, as well as tax policy measures, it is expected to ensure an improvement in the tax/GDP ratio by 0.4 percentage points compared to expectations. Here I would like to note that the expectation for this year is an improvement of 1 percentage point compared to [20]24.

The state budget expenditures are planned at 3 trillion 628 billion drams, of which 2 trillion 924 billion drams are for current expenditures, and 704 billion drams are for capital expenditures, which will account for 5.9 percent of [Armenia’s] GDP in 2026.

The state budget deficit is planned at 537 billion drams, i.e. 4.5 percent of the GDP, compared to 5.5 percent in 2025, decreasing in the medium term to a level of 2.8 percent that keeps the debt burden stable. As a result, the government debt/GDP ratio at the end of [20]26 is forecast at 53.5 percent.