Armenia’s budget remained in surplus through April, despite a projected deficit

YEREVAN, June 25. /ARKA/. Armenia’s budget remained in surplus through April, despite a projected deficit, according to World Bank’s Armenia Monthly Economic Update – June 2025.

Tax revenues (including mortgage-related income tax) grew 16.5 percent (yoy) in nominal terms in April. This was mostly driven by profit tax (up 16.4 percent, yoy) and VAT (up 33.5 percent, yoy) collection. Total expenditure grew 21.9 percent (yoy), driven by a 15.1 percent (yoy) increase in current expenditure, with higher interest payments (up 16.6 percent, yoy) and social spending (up 15.7 percent, yoy).

Capital expenditure more than doubled (yoy), mostly driven by defense spending. April saw a GDP surplus of 0.4 percent, bringing the cumulative surplus over the January-April period to 0.6 percent of GDP, compared with a projected deficit of 2.4 percent of GDP. The gap is driven by overperformance in revenue and underperformance in capital expenditure (ytd 

According to the Ministry of Finance, budget revenues for January-April 2025 amounted to 992.2 billion drams (an increase of 14.9% compared to the same period in 2024), and expenditures to 931.3 billion drams (an increase of 14%).  The resulting budget surplus of 60.9 billion drams was recorded, compared to 46.3 billion drams for the same period of the previous year. ($1 – 385.29 drams).-0-

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