Problem of underfulfillment of both current and capital expenditures  remains pressing - minister 

ArmInfo. The problem of underfulfillment of both current and capital expenditures remains pressing. Armenian Finance Minister Vahe Hovhannisyan stated this on  November 24 at a meeting of the parliamentary committee on financial,  budgetary, and credit issues, presenting a report on the state budget  execution for the first nine months of this year.

In particular, the minister explained, the current expenditure  variances primarily relate to social benefits and pensions, grants  and other expenses, and the purchase of goods and services. In terms  of capital expenditures, the underfulfillment is primarily related to  defense programs, road network improvements, and the implementation  of school and preschool construction and renovation programs.

The minister indicated that, according to the clarification, revenues  by the end of 2025 should exceed the 2 trillion 873.6 billion drams  projected in the current year's state budget (of which 2 trillion  720.3 billion drams will be tax revenues and state duties) by 20  billion drams. Expenditures will exceed the planned 3 trillion 441.6  billion drams (of which 2 trillion 706.8 billion drams will be  allocated for current expenditures) by 33.3 billion drams, and the  deficit is expected to increase by 12.5 billion drams compared to the  recorded 604 billion drams.

During the reporting period, RA state budget revenues for the first  nine months amounted to 2,125.5 billion drams, achieving 101.6% of  the target set in the revised nine-month program.

Compared to the same period last year, state budget revenues  increased by 14.3%, or 265.1 billion drams.  RA state budget  expenditures amounted to 2,205.4 billion drams, achieving 85.7% of  the target set in the revised nine-month program. Compared to the  same period last year, state budget expenditures increased by 14.1%,  or 272.1 billion drams.

For the first nine months of 2025, the RA state budget was executed  with a deficit of 79.9 billion drams, compared to the planned 480.3  billion drams for the first nine months and 73 billion drams for the  same period last year. In the first nine months of 2025, Armenia's  export revenues decreased by 46.8%, primarily due to a sharp decline  in the re-export of gold, platinum, and silver. Meanwhile, exports of  goods of Armenian origin increased by 9.1%.

Over the same period, imports of goods decreased by 33.4%, again due  to a sharp decline in re-export volumes. "Excluding this factor, the  growth in imports is in line with the growth in domestic demand," the  minister noted.  During the reporting period, tourist influx to  Armenia increased by 0.8%. However, a decline was recorded in the  number of tourists from Russia and India (1.7 and 0.7%,  respectively).

From January to September, the economic activity indicator increased  by 7.6% (due to growth in the services and construction sectors). The  number of officially unemployed individuals decreased by 15%,  reaching 36,821, while the number of employees increased by 4.8%,  reaching 788,647. The average monthly salary increased by 5.3%,  reaching 295,042 drams. The average salary in the public sector was  227,888 drams, while in the private sector it was 320,901.

"Against a backdrop of 3.3% inflation, the real growth of the average  monthly salary was 1.9%,> the Finance Minister stated.

Over the first nine months, the dram appreciated by 1.2% against the  US dollar. The dram devalued by 1.6% against the euro and 5.3%  against the Russian ruble.

Armenia's public debt reached $14.2 billion (5.4 trillion drams) as  of October 1, 2025, accelerating its annual growth from 10.4% to  13.5%. This is due to improved external debt dynamics, while domestic  debt growth continues to slow. Specifically, external debt reversed  its annual trend from a 3.4% decline to a 9.6% increase, exceeding  $6.9 billion (2.6 trillion drams), while domestic debt continued to  stall, growing from 29.1% to 17.5%, reaching $7.3 billion (2.8  trillion drams). Moreover, domestic debt began to outweigh external  debt in July of this year, subsequently strengthening its dominance  by a more pronounced margin each month.