YEREVAN, October 7. /ARKA/. Armenia’s public debt will remain below 50% of GDP in the medium term, stated the Republic’s Minister of Finance, Vahe Hovhannisyan.
“Debt servicing costs will remain within 11% of revenues, and the deficit will stand at 3.4%, whereas the deficit for 2026 had originally been projected at 4.5%,” he said on Wednesday during the government’s question-and-answer session in parliament.
Hovhannisyan added that the government is committed to reducing the deficit to below 2% in the medium term.
Speaking about the draft state budget for 2027, the minister noted that revenues would exceed 4 trillion drams, with growth ensured across all areas and the implementation of decisions made by the government in the preceding period.
“In essence, this will be the first budget of the new government program, and through it, we will lay the foundation for the effective implementation of all other programs,” Hovhannisyan said.
On public debt
As Hovhannisyan stated in September, Armenia’s public debt stood at 5.12 trillion drams as of June 30, 2026, compared to 5.30 trillion drams on December 31, 2025. In dollar terms, the public debt amounted to $13.9 billion.
Previously, Deputy Minister of Finance Avag Avanesyan stated that the Armenian government aims to bring the public debt-to-GDP ratio down to 45%.
On the State Budget
On October 1, the Government of Armenia approved the draft law “On the State Budget of the Republic of Armenia for 2027,” which will be submitted to the National Assembly in accordance with established procedure.
According to the draft, Armenia’s consolidated budget for 2027 projects revenues of 3.8 trillion drams (excluding inter-budgetary transfers), expenditures of 4.2 trillion drams (excluding inter-budgetary transfers), and a deficit of 468.2 billion drams.
Economic growth of 5.8% is forecast for 2027, with an average annual growth rate of 6% projected for the medium term, aligning with the targets set out in the government’s program.
