ArmInfo. One of the main tasks of the Armenian government in 2025 will be to strengthen resilience and increase economic potential. This was stated by RA Finance Minister Vahe Hovhannisyan on October 28 during the discussions in the commissions of the National Assembly of the Republic of Armenia on the draft state budget for 2025.
According to him, it will also be necessary to ensure the maintenance of fiscal stability and the management of macro-fiscal risks. In the next financial year, as the minister noted, capital expenditures will amount to about 733 billion drams, which is more than 5.4% higher than the capital expenditure figures envisaged by the state budget for the current year. The share of capital expenditures in the country's GDP will be 6.6%, which is approximately in line with similar indicators for 2024, but will be 0.6% higher than the expected expenditures in 2024. Hovhannisyan noted that 55.5% of all expenditures will be directed to the defense sector, to which 664.4 billion drams will be allocated next year, or 20% more than in 2024. As a result, the volume of defense expenditures will amount to 6% of Armenia's GDP and will exceed the same indicator for the current year by 0.7%.
The Minister also said that social protection expenditures in 2025 will amount to 905 billion drams, or 13.9% more than in 2024. However, as Hovhannisyan emphasized, there will be no significant changes in state policy in this area. As a result, social spending will amount to 82% of GDP, exceeding last year's figure by 0.6%. Hovhannisyan noted that education expenditures next year will amount to 300 billion drams, which will exceed the same figure in the country's 2024 state budget by 4.4%, amounting to 2.7% of GDP, which corresponds to last year's budget figure. In general, as the Minister emphasized, under conditions of ensuring GDP growth of 5.6%, 3.5% GDP deflator and average inflation of 3.6%, the state budget revenues of Armenia in 2025 will grow by 279.5 billion drams - to 2 trillion 873.1 billion drams (about $ 7.4 billion), which is 11% higher than the expected figure for this year, and 22% higher than the actual figure for 2023.
State treasury expenditures are planned at the level of 3 trillion 482.4 billion ($7.8 billion) or 31.5% of GDP. This figure exceeds expectations for 2024 (30.4%) by 13% and actual expenditures for 2023 (27.5%) by 37%. Of the planned expenditures for next year, 2 trillion 749.2 billion drams will be current expenditures (24.9% of GDP). 733.2 billion drams ($1.88 billion) or 6.6% of GDP will be expenses on non- financial operations (capital investments), which is higher than the planned figure for 2024 of 695 billion drams ($1.79 billion) and the expected 639.3 billion ($1.65 billion) - 6.3% of GDP. According to the results of last year, capital expenditures amounted to 472.6 billion drams or 5% of GDP.
The deficit in 2025 will amount to 609.4 billion drams or 5.5% of GDP, against 482.9 billion drams or 4.6% of GDP in the budget approved for the current year and 4.8% according to this document.
