IMF says Armenian 2026 budget and medium-term fiscal consolidation are appropriate
04.12.2025,
15:53
The Armenian authorities’ 2026 budget and medium-term fiscal consolidation planned in the authorities’ MTEF are appropriate, the International Monetary Fund (IMF) said after concluding the 2025 Article IV consultation, and completing the sixth review under the Stand-By Arrangement (SBA).
YEREVAN, December 4. /ARKA/. The Armenian authorities’ 2026 budget and medium-term fiscal consolidation planned in the authorities’ MTEF are appropriate, the International Monetary Fund (IMF) said after concluding the 2025 Article IV consultation, and completing the sixth review under the Stand-By Arrangement (SBA).
It says the planned fiscal stance in 2026 is mildly contractionary, while accommodating spending on refugee support, health, and public investment.
Over the medium term, further deficit reduction while creating fiscal space for priority social and capital spending will be underpinned by additional revenue mobilization through broadening the tax base as well as revenue administration measures, and fiscal structural reforms to raise spending efficiency.
According to the draft state budget for 2026, expenditures will amount to 3.6 trillion drams, revenues to 3.091 trillion drams, and the deficit to 537 billion drams. The revenue-to-GDP ratio will be 25.9%, tax revenues to 24.9%, expenditures to 30.4%, and capital expenditures to 5.9%.
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. ($1 = 381.2 drams).-0-
It says the planned fiscal stance in 2026 is mildly contractionary, while accommodating spending on refugee support, health, and public investment.
Over the medium term, further deficit reduction while creating fiscal space for priority social and capital spending will be underpinned by additional revenue mobilization through broadening the tax base as well as revenue administration measures, and fiscal structural reforms to raise spending efficiency.
According to the draft state budget for 2026, expenditures will amount to 3.6 trillion drams, revenues to 3.091 trillion drams, and the deficit to 537 billion drams. The revenue-to-GDP ratio will be 25.9%, tax revenues to 24.9%, expenditures to 30.4%, and capital expenditures to 5.9%.
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. ($1 = 381.2 drams).-0-
