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.
