ArmInfo.Armenia's draft 2026 state budget envisages increased competitiveness and a significant expansion of investment in human capital, economic infrastructure, and security. This was stated by Martin Galstyan, Chairman of the Central Bank of Armenia, from the podium of the National Assembly of the Republic of Armenia on November 12. According to him, the factors that contributed to significant economic growth in previous years are gradually being neutralized.
Maintaining high GDP growth rates next year will largely depend on government policies aimed at increasing labor productivity, promoting exports, and improving the investment climate. In this context, given the instruction on fiscal consolidation, the Central Bank places particular emphasis on improving the efficiency of expenditures envisaged in the draft state budget. This primarily concerns improving the efficiency of budgetary funds in the implementation of economic and infrastructure programs.
The head of the Central Bank recalled that the draft envisages 5.4% GDP growth in 2026 while ensuring public debt stability. Given the geopolitical uncertainties prevailing globally, the Central Bank emphasizes the significant internal and external risks associated with the country's economic development scenarios. Given these risks, the Central Bank calls for strictly limiting the use of the resources of the government's Reserve Fund, directing them exclusively to mitigating potential risks to macroeconomic stability.
The head of the Central Bank emphasized that active discussions regarding this fund have taken place throughout the current year, and that its creation should be directed exclusively toward preventing all potential risks. It is also important to continuously monitor risks and implement preventative measures.
Galstyan recalled that, according to the document presented, the share of taxes in the country's GDP will increase by another 0.4 percentage points in 2026, bringing taxes to 29.4%. In this context, the need for efficient budget spending was emphasized.
