Armenia's budget deficit for the first nine months amounted to 0.73% of GDP, compared to the projected 5.5% for 2025 – WB
26.11.2025,
11:14
Armenia's cumulative budget deficit from the first to third quarters reached 0.73% of the annual projected GDP, compared to the projected 5.5% of GDP for 2025. This is stated in the World Bank's "Armenia Monthly Economic Update – November 2025."
YEREVAN, November 26. /ARKA/. Armenia's cumulative budget deficit from the first to third quarters reached 0.73% of the annual projected GDP, compared to the projected 5.5% of GDP for 2025. This is stated in the World Bank's "Armenia Monthly Economic Update – November 2025."
"In September, a deficit of 0.1% of the annual projected GDP was recorded," the study notes.
The report indicates that tax revenues (including mortgage-related income tax) increased by 8.7% year-on-year in nominal terms in September, driven by higher VAT (25.4%), income tax (10.7%), and corporate income tax (12.6%) collections.
"Social payments increased by 13.3%, and turnover tax collections increased by 53.1% due to a higher turnover tax rate in 2025. However, environmental tax collections decreased by 22.5%," the publication states.
World Bank analysts note that overall expenditure increased by 23%.
"Capital expenditure increased by 79.5%, mainly due to a 50.7% increase in defense spending. Education spending nearly doubled, driven by school construction and rehabilitation programs. "Current expenditures increased by 7.8% in nominal terms, primarily due to social protection expenditures (an 8.9% increase)," the report notes.
Armenian Finance Minister Vahe Hovhannisyan previously stated that the budget deficit is planned to be reduced from 5.5% to 4.5% in 2026, to 3.5% in 2027, then to 2.8%, and then to 1% by 2030.
"In September, a deficit of 0.1% of the annual projected GDP was recorded," the study notes.
The report indicates that tax revenues (including mortgage-related income tax) increased by 8.7% year-on-year in nominal terms in September, driven by higher VAT (25.4%), income tax (10.7%), and corporate income tax (12.6%) collections.
"Social payments increased by 13.3%, and turnover tax collections increased by 53.1% due to a higher turnover tax rate in 2025. However, environmental tax collections decreased by 22.5%," the publication states.
World Bank analysts note that overall expenditure increased by 23%.
"Capital expenditure increased by 79.5%, mainly due to a 50.7% increase in defense spending. Education spending nearly doubled, driven by school construction and rehabilitation programs. "Current expenditures increased by 7.8% in nominal terms, primarily due to social protection expenditures (an 8.9% increase)," the report notes.
Armenian Finance Minister Vahe Hovhannisyan previously stated that the budget deficit is planned to be reduced from 5.5% to 4.5% in 2026, to 3.5% in 2027, then to 2.8%, and then to 1% by 2030.
