The Government of Armenia has approved the draft law on the State Budget of the Republic of Armenia for 2026, which will now be submitted to the National Assembly in accordance with the established procedure.
According to Finance Minister Vahe Hovhannisyan, the draft budget forecasts a Gross Domestic Product (GDP) of AMD 11.933 trillion, with an economic growth rate of 5.4% and a GDP deflator of 3%. Total revenues are projected at AMD 3.091 trillion, including AMD 2.972 trillion from taxes. The minister noted that improvements in tax administration, anti-shadow economy measures, and fiscal policy initiatives are expected to enhance the tax-to-GDP ratio by 0.4 percentage points compared to projections.
The total budget expenditures are planned at AMD 3.628 trillion, including AMD 2.924 trillion for current expenditures and AMD 704 billion for capital expenditures, representing 5.9% of GDP in 2026. The budget deficit is projected at AMD 537 billion, or 4.5% of GDP, down from 5.5% in 2025.
Minister Hovhannisyan emphasized that the budget aligns with the Government’s priorities and will fund key social, educational, healthcare, economic support, and infrastructure programs. Among the main initiatives are:
- Implementation of a comprehensive health insurance system.
- Continuation of social support programs for forcibly displaced persons, including housing assistance, totaling AMD 55 billion.
- Nationwide rollout of a new family vulnerability assessment system, piloted in 2025, aimed at reducing extreme poverty.
- Support for individuals outside the labor market or in partial formal employment with AMD 9.7 billion allocated.
- Expansion of post-payment support for pensioners receiving cashless payments, with AMD 20 billion earmarked, an increase of AMD 7.6 billion over 2025.
- Funding for the Academic City project with AMD 4.9 billion for design, construction, international consultancy, and contract management.
- Salary increases for teachers in general education schools, vocational and extracurricular institutions, and staff of pedagogical-psychological support centers, following evaluation and certification processes.
- Continuation of school and kindergarten construction, renovation, and equipment procurement.
- Rehabilitation and maintenance of interstate, republican, and regional roads, including bridges and tunnels, with a budget of AMD 66.2 billion.
The government’s draft budget reflects its focus on social welfare, infrastructure development, and economic growth, aiming to enhance public services and improve living standards across Armenia.
