“During the discussions, we received 30 proposals and inquiries from Members of Parliament, most of which concerned increasing expenditures in certain programs by around AMD 4.9 billion drams. These were thoroughly studied by the sectoral ministries, and clarifications were provided,” Minister of Finance of Armenia Vahe Hovhannisyan stated at the December 3 session of the National Assembly, presenting the final version of the 2026 state budget.
Accordingly, 15 of the MPs’ proposals were fully or partially accepted, amounting to AMD 4.2 billion; 3 inquiries received clarifications; and 12 proposals were rejected, with detailed explanations provided.
“No changes are envisaged to the macroeconomic indicators underlying the 2026 state budget. According to our forecasts, nominal GDP will amount to AMD 11 trillion 933 billion, increasing by 5.4 percent, the GDP deflator will rise by 3 percent, and nominal GDP growth will be 8.5 percent,” the Minister said.
The Government’s debt-to-GDP ratio has decreased by 0.6 percentage points compared to the 53.5 percent proposed in the preliminary draft, now standing at 52.9 percent.
Budget expenditures have decreased by AMD 0.9 billion in current expenditures compared to the first version. The reduction is mainly due to exchange rate assessments.
Certain changes were made in expenditures allocated to state bodies. For example, funds for the Prime Minister’s Office increased by AMD 157.3 million, which will be directed toward coordinating the work of the National Committee for the 2027 Francophonie Games.
“Our institutional capacities are developing in line with our rapidly growing opportunities, which indicates that our progress is not accidental or temporary, but a deeply conscious process entirely guided by the development of our state’s key structures. This gives confidence to all Armenians that it is worthwhile to live and create in our country, and assures international investors and partners that Armenia is a predictable, reliable, and attractive place for implementing new economic programs.
A prosperous life in Armenia is no longer a future prospect or a political promise, but a tangible, everyday reality that provides everyone with immeasurable freedom and excellent opportunities to improve and develop right here in our homeland,” he said.
According to the Minister, Armenia is entering 2026 more confident than ever, with a stable economy, a manageable and steady debt level, and strong confidence in the future.
“Based on the most recent analyses of the execution of the 2025 budget, we can predict that by the end of 2025, instead of the projected 5.5 percent budget deficit, we will have a deficit not exceeding 5 percent, as a result of which public debt will not surpass the 50 percent threshold relative to GDP,” he added.
