Emergence of risks should be viewed as source of development by  utilizing existing opportunities and ideas - minister 

ArmInfo.  Armenia's draft 2026 state budget represents the logical culmination of the journey traversed over the past five years. This was stated by RA Minister of  Finance Vahe Hovhannisyan on November 12 at the plenary session of  the National Assembly, presenting the country's draft Basic Economic  Law.

According to the minister, the draft 2026 state budget summarizes all  the priorities defined by the 2021-2026 government program, while  simultaneously moving toward peace and further development, the  foundations for which have been laid in recent years. The minister  noted that, guided by the experience of past years, the state budget  must be flexible, responsive to the almost daily changes occurring in  the world, which are evolving at a faster pace than ever before. For  example, artificial intelligence, which until recently was considered  a phenomenon of the future, is already changing the nature of the  world and even the structure of the economy. Armenia, Hovhannisyan  emphasized, must keep pace with current developments and, in some  cases, even take steps forward, focusing on long- term prospects. In  all cases, he continued, it is necessary to consider all possible  risks, maintaining fiscal stability and more actively developing the  country's economic potential. The minister stated that the emergence  of risks must be viewed as a source of development by harnessing  existing opportunities and ideas. "It is important to recognize these  opportunities and utilize them wisely for the sake of the country's  sustainable development. In other words, in a context of rapid  technological development, it is crucial to embrace new innovations  and unlock human capital, while maintaining social stability and  justice.

Every citizen of Armenia should have the opportunity to express and  apply creative thought in favorable conditions," Hovhannisyan said.

He added that for many years, the Armenian people lived with  expectations of a better life in the future. In the long term, they  dreamed of independence, but in the short term, they faced the  interests of empires. Over the past 30 years, this has been  compounded by expectations of peace. "I am pleased to note that today  we are discussing the draft state budget in peaceful conditions.  Therefore, our future depends solely on us, on our creativity,  productivity, decision-making capabilities, and the pace of change.  Therefore, the future is already today, and today's generation will  reap the fruits of the future," the Minister of Finance noted.

He noted that the work done in this direction is not only visible but  also measurable. The Armenian government's policies have led to  financial stability, increased incomes, a changed investment  environment, and long-term economic growth. A 15.7% decline in global  oil prices (Brent crude) could have a positive impact on the  country's economic growth, reaching $68 per barrel by the end of this  year and $60 in 2026. However, copper prices on global markets have  shown the exact opposite: the price per ton has jumped to almost  $10,000, with this growth projected to continue this year and into  the coming years. Global food prices increased by an average of 6.3%  between January and September of this year. All these factors, the  minister noted, could play a positive role in Armenia's economic  development.

The Minister of Finance noted that Armenia's GDP is projected to grow  by 5.4% in 2026, reaching 11 trillion 934 billion drams. State budget  revenues are expected to reach 3 trillion 91 billion drams, of which  tax revenues will amount to 2 trillion 973 billion drams.  Improvements in tax administration, the fight against the shadow  economy, and the implementation of tax policy measures are expected  to improve the tax-to-GDP ratio by 0.4 percentage points.

The Minister noted that state budget expenditures are planned at 3  trillion 628 billion drams, of which 2 trillion 924 billion drams are  current expenditures and 704 billion drams are capital expenditures.   These expenditures will account for 5.9% of the gross domestic  product. Consequently, expenditures will amount to 30.4% of GDP,  which is 0.8 percentage points less than the expected 2025 figure.  The state budget deficit is planned at 537 billion drams.