Thursday, 25 September 2025
The Government approves the bill of the Republic of Armenia “On the State Budget of the Republic of Armenia for 2026”
Today, the regular Cabinet meeting took place, chaired by Deputy Prime Minister of the Republic of Armenia Tigran Khachatryan.
The Government approved the billof the Republic of Armenia “On the State Budget of the Republic of Armenia for 2026”. The legislative initiative of the Government of the Republic of Armenia will be submitted to the National Assembly in accordance with the established procedure.
As noted by the Minister of Finance Vahe Hovhannisyan, the gross domestic product is forecasted at 11 trillion 933 billion drams, economic growth is forecasted at 5.4%, and the GDP deflator is 3%. “The state budget revenues are expected to be 3 trillion 91 billion drams, of which tax revenues are 2 trillion 972 billion drams. As a result of improving tax administration, combating shadow economy, as well as implementation of tax policy measures, it is expected to ensure an improvement in the tax/GDP ratio by 0.4 percentage points compared to expectations," the minister said.
Vahe Hovhannisyan noted that the state budget expenditures are planned to be 3 trillion 628 billion drams, of which 2 trillion 924 billion drams for current expenditures, and 704 billion drams for capital expenditures, which will make up 5.9% of the gross domestic product in 2026. The state budget deficit is planned to be 537 billion drams, i.e. 4.5% of GDP compared to 5.5% in 2025. The Minister informed that in line with the priorities of the Government Program, a number of priority measures in social, educational, healthcare areas, and economic support will be implemented in 2026.
The Government adopted a decision to provide the necessary financial resources to ensure the continuation of the measure of providing refunds to pensioners and beneficiaries from non-cash payments in October-December 2025. Accordingly, it is proposed to allocate 3 billion 219 million drams.
Approval was given to the proposal to sign Loan Agreement No. CAM 1030 01 between the Republic of Armenia and the French Development Agency for the implementation of a budget support program in the form of a loan aimed at improving the efficiency and sustainability of public service delivery in Armenia, as well as the development of the financial sector.
