Armenian government approves draft state budget for 2026: GDP expected to reach 11.93 trillion drams, with growth of 5.4%
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YEREVAN, September 25. /ARKA/. During a meeting on Thursday, the Armenian government sanctioned the draft state budget for 2026.
Finance Minister Vahe Hovhannisyan revealed at the meeting that Armenia's GDP is expected to reach 11 trillion 933 billion drams in 2026, with an anticipated economic growth of 5.4%.
"The GDP deflator is projected to be 3%. The planned revenues for the state budget are set at 3 trillion 91 billion drams, with tax revenues estimated at 2 trillion 972 billion drams," stated Hovhannisyan.
He further explained that due to initiatives aimed at enhancing tax administration, tackling the shadow economy, and refining tax policy, the tax-to-GDP ratio is expected to increase by 0.4 percentage points above the anticipated level (the current year's figure is projected to be 1 percentage point compared to 2024).
The minister also indicated that state budget expenditures are projected at 3 trillion 628 billion drams, which includes 2 trillion 924 billion drams allocated for current expenditures and 704 billion drams for capital expenditures (this will represent 5.9% of GDP in 2026).
"The anticipated state budget deficit is 537 billion drams, equating to 4.5% of GDP, a decrease from 5.5% in 2025. The medium-term decline is expected to be 2.8%. Consequently, the government's debt-to-GDP ratio at the conclusion of 2026 is projected to be 53.5%," Hovhannisyan remarked. ($1 - 382.72 drams).-0-
