Armenia's state budget deficit to rise to 5.5% of GDP in 2025 - Fitch

YEREVAN, January 29. /ARKA/. Armenia's state budget deficit will increase to 5.5% of GDP in 2025 from 4.7% in 2024, reflecting expansionary fiscal policy, Fitch Ratings said in a report.
“This includes integration costs for some 65,000 refugees from Nagorno-Karabakh and higher military spending,” the report said.
Fitch analysts also point out that the planned introduction of a universal health insurance program from 2026 will increase spending by about 1.3% of GDP/year, with the deficit remaining at 5.4% of GDP in 2026.
Armenia's state budget approved on December 4, calls for 2.84 trillion drams in revenue and 3.4 trillion drams in spending (of which 2.7 trillion drams are current expenditures and 734 billion drams are capital expenditures. The deficit is projected at 604 billion drams.
Economic growth is planned at the level of 5.1%, the average inflation at 3.5%. The ratio of government debt to GDP is projected at 54.3%. ($1 - 398.36 drams)