Armenia maintains substantial reserve funds to safeguard against economic risks, with a financial "safety cushion" totaling over half a billion dollars across a reserve fund and stabilization account.
During a budget discussion for 2025 on October 30, Finance Minister Vahe Hovhannisyan outlined Armenia’s conservative reserve fund policy. He noted that the government decided to keep around $129 million (50 billion drams) from the 2024 reserve fund unspent.
Initially, the 2024 reserve fund amounted to $345.6 million (134 billion drams). The 2025 budget projects a reduction to $283.5 million (110 billion drams), with $245 million (95 billion drams) allocated for risk management and unforeseen expenses.
An additional stabilization account, currently holding approximately $283.5 million (110 billion drams), further reinforces financial protection. According to the minister, these funds may serve as an extra buffer in the event of unexpected risks.
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).
