In 2026, 43% of Armenia’s capital spending will be directed to the defense sector, Finance Minister Vahe Hovhannisyan announced during preliminary budget discussions at a joint session of parliamentary standing committees.
“Capital expenditures will total 704 billion drams in 2026, increasing to 719 billion in 2027 and 803 billion in 2028. We’ve highlighted the capital spending levels for the Defense Ministry and economic infrastructure. Next year, 43% of capital expenditures will go to defense,” Hovhannisyan said, according to Sputnik Armenia.
Social protection spending is projected at around 993 billion drams in 2026, rising to 1.062 trillion in 2027 and 1.123 trillion in 2028. This marks a 9.6% increase over 2025.
Hovhannisyan added that capital expenditures in the social and economic sectors are expected to grow by 22% in 2026 compared to the previous year, equaling 3.4% of GDP. The ratio will be 3.2% in 2027 and 3.6% in 2028.
Separately, Prime Minister Nikol Pashinyan announced that starting January 1, 2026, the duration of mandatory military service will be reduced from two years to 1.5 years.
