During a Cabinet meeting, Finance Minister Vahe Hovhannisyan stated that Armenia’s gross domestic product (GDP) for 2026 is projected at 11.933 trillion drams, assuming 5.4% economic growth and a 3% GDP deflator.
According to him, the government debt-to-GDP ratio is forecast at 53.5% by the end of 2026, as reported by Panorama.am .
The legally defined ceiling for this ratio is 60%.
“The draft budget sets GDP at 11.933 trillion drams, with economic growth projected at 5.4% and a 3% GDP deflator. State budget revenues are forecast at 3.9 trillion drams, including 2.9 trillion in tax revenue,” Hovhannisyan said.
He noted that the tax-to-GDP ratio is expected to increase by 0.4 percentage points compared to current projections and by 1 percentage point over 2024 levels.
“Budget expenditures are set at 3.6 trillion drams, of which 704 billion will go toward capital spending,” the minister added, noting that the budget deficit is projected at 538 billion drams, or 4.5% of GDP. This marks a decline from 5.5% in 2025.
The government has approved the draft law “On the 2026 State Budget of the Republic of Armenia.” The legislative initiative will be submitted to the National Assembly as prescribed.
