YEREVAN, November 5. /ARКА/. Macroeconomic stability has emerged as Armenia’s hallmark, characterized by robust economic growth and minimal inflation, as stated by Central Bank Governor Martin Galstyan.
“The reduction of the budget deficit from 5.5% to 4.5% in the pre-election year serves as a significant signal to all potential partners and investors,” he remarked during a discussion regarding the 2026 state budget in the Committee on Financial, Credit, and Budgetary Affairs.
In presenting the primary indicators of the 2026 state budget and the key planned initiatives, Armenian Finance Minister Vahe Hovhannisyan revealed that GDP is projected to reach 11.9 trillion drams in 2026, with an anticipated economic growth rate of 5.4%.
“State budget revenues are projected to be 3.09 trillion drams. The budget is expected to increase by 0.4 percentage points, with tax revenues amounting to 2.97 trillion drams. Due to enhanced tax administration, efforts against the shadow economy, and tax policy measures, the tax-to-GDP ratio is expected to rise by 0.4 percentage points,” Hovhannisyan stated.
The Finance Minister indicated that state budget expenditures for 2026 are planned at 3.6 trillion drams, which includes current expenditures of 2.9 trillion drams and capital expenditures of 704 billion drams.
“In total, this will represent 5.9% of GDP. Consequently, expenditures will account for 30.4% of GDP, which is 0.8 percentage points lower than the anticipated expenditures for 2025. The state budget deficit is projected at 537 billion drams,” Hovhannisyan added.
The commission provided a favorable assessment of the draft law concerning the 2026 state budget.
As per official statistics, Armenia’s GDP experienced a growth of 5.9% in the second quarter, reaching approximately 2.4 trillion drams. The twelve-month inflation rate in October was recorded at 3.7%.-0-
