Armenian Finance Minister Vahe Hovhannisyan presented the 2025 defense budget proposal to parliament, which is set to reach a historic high. Defense spending will amount to $1.7 billion, a 20% increase from 2024 levels.
“In 2025, capital expenditures in the country will total approximately $1.89 billion, which is 5.4% higher than the 2024 state budget. Of this, 55.8% will be allocated to defense,” the minister stated during the budget discussion in parliament on October 28.
According to Hovhannisyan, with this increase in funding, defense spending will reach 6% of the country's GDP, up by 0.7 percentage points from 2024.
Earlier, BMG reported that the 2025 Armenian state budget proposal, recently approved by the government, anticipates a significant increase in both revenue and spending.
The projected state budget revenue for 2025 is set at 2.873 trillion drams (approximately $7.39 billion), which is 11% higher than the anticipated figure for 2024 and 22% above the actual revenue level of 2023.
The expenditure side of the 2025 budget is planned at 3.482 trillion drams (roughly $8.95 billion), marking a 13% increase from the expected 2024 level and 37% above the actual expenditures of 2023.
The budget deficit for 2025 is expected to be around 609 billion drams ($1.57 billion).
