Armenia's public debt as of end-2025 amounted to approximately 5.5 trillion drams ($14.5 billion), while its ratio to GDP remained at a controlled level. This was stated on March 23 by Finance Minister Vage Hovhannisyan at a session of the standing parliamentary Committee on Financial, Credit and Budgetary Affairs, during the presentation of the report on the progress and results of the implementation of the Government of the Republic of Armenia's program (2021–2026) for 2025.

According to him, the public debt-to-GDP ratio declined by 0.7 percentage points compared to the previous year, standing at 47.3% — remaining below the 50% target set by Armenia's fiscal and monetary rules.

"An important trend is observed in the structure of public debt. The role of domestic borrowing is increasing," Hovhannisyan noted. The Finance Minister also reported that the majority of budget deficit financing in 2025 was carried out through domestic sources, which reduced the impact of currency fluctuations on public debt.

"During 2025, deficit financing through domestic borrowing amounted to 297 billion drams or 67.7%, while deficit financing through external borrowing amounted to 142 billion drams or approximately 32.3%. As of end-2025, the share of debt denominated in national currency stood at 52.9%, having increased by 2.2 percentage points compared to the same period of the previous year," the government representative specified.

He noted that initial forecasts had projected the debt to exceed the 50% mark, but it actually declined. The positive result, according to Hovhannisyan, was driven by two main factors: higher-than-expected economic growth and higher tax revenues. "First, GDP growth exceeded our expectations by 2 percentage points, and tax collection also came in above our forecasts. We planned for a deficit of 5.5%, but achieved a deficit of 3.7%, and as a result, a reduction in public debt," the Minister added.

Vage Hovhannisyan emphasized that a new tool has been introduced to assess public debt management, enabling broader risk analysis. The new model provides a more complete picture of public debt sustainability.