Finance minister: Armenia's government debt-to-GDP ratio projected at 53.5% by end of 2026

Presenting the draft 2026 state budget at a cabinet meeting on Thursday, Finance Minister Vahe Hovhannisyan said Armenia’s government debt-to-GDP ratio is expected to reach 53.5% by the end of 2026, well below the legally mandated ceiling of 60%.

According to the draft, GDP is projected at 11.93 trillion drams with economic growth of 5.4% and a GDP deflator of 3%. Budget revenues are set at 3.9 trillion drams, of which 2.9 trillion are tax revenues. Hovhannisyan noted that the tax-to-GDP ratio will improve by 0.4 percentage points compared with the medium-term outlook and by 1 percentage point compared with 2024.

Planned budget expenditures amount to 3.6 trillion drams, including 704 billion for capital spending. The budget deficit is projected at 538 billion drams, or 4.5% of GDP, down from the 5.5% expected in 2025.