Armenia revises 2026 budget: Revenues and expenditures cut, funding for PM's Office increased

The Armenian government has revised its 2026 draft budget, reducing both revenues and expenditures while increasing allocations for several state bodies, including the Prime Minister’s Office.

Presenting the updated version of the budget in the parliament on Wednesday, Finance Minister Vahe Hovhannisyan said the government debt-to-GDP ratio is now projected at 52.9%, down by 0.6 percentage points from the initial estimate of 53.5%.

According to Hovhannisyan, budgeted state revenues have been reduced by 0.2 billion drams, with official grants also declining. Expenditures have been cut by 0.9 billion drams, a change he attributed largely to currency revaluation.

Despite the overall reduction in spending, several institutions will receive additional funding. The Ministry of Economy will see its allocation rise by 38.5 million drams, the Ministry of Justice will receive an additional 1.247 billion drams and the Prime Minister’s Office budget will increase by 157.3 million drams.

Hovhannisyan said that funding for the Supreme Judicial Council (SJC) and the Ministry of the Environment has also been raised.

In contrast, the budget of the Ministry of Finance has been reduced by 3.3 billion drams.