The Armenian government has approved the draft law “On the 2026 State Budget of the Republic of Armenia.”
Finance Minister Vahe Hovhannisyan stated that the GDP for 2026 is projected at 11 trillion 933 billion drams, with 5.4% economic growth and a 3% GDP deflator.
He noted that in line with the government’s program priorities, several key initiatives in social protection, education, healthcare, and economic infrastructure will be implemented in 2026. The approved budget includes the launch of a healthcare insurance system.
“The state budget revenue is projected at 3 trillion 91 billion drams, including 2 trillion 972 billion in tax revenue. Improved tax administration, efforts to combat the shadow economy, and tax policy measures are expected to raise the tax-to-GDP ratio by 0.4 percentage points over current expectations,” the minister said, according to the government’s press service.
He added that budget expenditures are projected at 3 trillion 628 billion drams, including 2 trillion 924 billion in current expenses and 704 billion in capital spending. The latter will amount to 5.9% of GDP in 2026.
The budget deficit is projected at 537 billion drams, or 4.5% of GDP, down from 5.5% in 2025.
The government’s legislative initiative will be submitted to the National Assembly as prescribed.
