Armenia’s Ministry of Finance has released the performance report for the state budget in the first half of 2025, revealing a deficit of 39.2 billion drams—far below the projected 325.3 billion drams, according to Sputnik Armenia.
The ministry’s report stated: “The budget deficit came in lower than planned, primarily due to revenue overperformance and lower spending execution, leading to an increase in available domestic financing. Additionally, only 14.4 billion drams were received in external loans, representing 37.1% of the planned figure.”
According to the report, state revenues for the first half of 2025 rose by 15.2% compared to the same period last year, totaling 1,433.1 billion drams, driven mainly by higher tax and non-tax revenues.
“In H1 2025, state budget revenues amounted to 1,433.1 billion drams, achieving 102.2% of the revised semiannual target,” the report notes.
Government expenditures reached 1,472.3 billion drams—85.2% of the planned figure for the period.
“This marks an execution rate of 85.2% of the revised semiannual plan. Compared to the same period last year, state expenditures increased by 19.4% or 239.6 billion drams, mainly due to growth in capital spending and social benefits and pensions,” the ministry added.
The ministry also noted that all government agencies met their spending obligations during the reporting period.
Public debt servicing costs increased by 10.4%, adding 15.9 billion drams, while capital expenditures surged by 80.7%, reaching 132.1 billion drams.
Regarding grants, the Ministry of Finance reported receiving 3.6 billion drams in official grants in the first half, achieving 69.6% of the planned amount.
“In January–June 2025, official grants received were 14.6% or 611.6 million drams lower than in the same period of the previous year, due to larger-than-expected budget support grants in H1 2024,” the official explanation stated.
According to the approved 2025 state budget, a deficit of 604 billion drams—or 5.5% of GDP—is planned, with a GDP forecast of 10.891 trillion drams, 5.1% economic growth, 2.837 trillion drams in revenues, and 3.441 trillion drams in expenditures. Capital expenditures are set at 734 billion drams.
