In light of regional instability, the Armenian government has developed a comprehensive plan to safeguard the state budget against potential risks. Finance Minister Vahe Hovhannisyan announced the strategy in an interview with Armenian Public Television.
The minister provided a detailed analysis of the current economic situation and measures aimed at ensuring financial stability in 2025. Despite significant regional challenges, he stated that the government has allocated sufficient reserves to mitigate potential threats to the economy.
Hovhannisyan highlighted the effectiveness of existing contingency mechanisms, citing the current year as an example, when tax collection difficulties were successfully addressed thanks to preemptive measures.
The government’s strategy for tackling economic challenges focuses on increasing tax revenues through improved administration and combating the shadow economy without raising tax rates, utilizing new borrowing options, and optimizing state expenditures.
As part of its cost-cutting policy, all government agencies have been instructed to reduce maintenance expenses by 4%, the minister said. This will involve cuts to the number of official vehicles, travel expenses, bonuses, and utility payments.
Earlier, BMG reported that the Armenian Parliament approved the 2025 state budget. The budget forecasts GDP growth of 5.1% with a target inflation rate of 3.5%. Revenues are projected at $7.1 billion, while expenditures are set at $8.5 billion.
The budget deficit remains at 5.5% of GDP, amounting to $1.5 billion, which is $13.8 million less than the initial proposal. The government’s reserve fund has been increased by $8.5 million.
