The Armenian government plans to reduce expenditures on state administration by 4% in 2025, announced Finance Minister Vahe Hovhannisyan while presenting the draft state budget for the upcoming year in Parliament.
According to the minister, Armenia's economy is entering a new phase where growth rates and revenue generation are trending toward more sustainable levels. "In these circumstances, we must spend every tax dollar paid by our citizens more prudently, while continuing to combat the shadow economy," Hovhannisyan emphasized.
The minister noted that reducing spending on the state apparatus demonstrates the government's readiness to step out of its comfort zone and increase its own efficiency. The main goal for 2025 remains achieving significant progress on the government’s program while using resources wisely.
"We intend to fund programs that ensure long-term national security, guarantee citizens' living standards, and expand economic potential," the finance minister stated, expressing confidence that successfully executing the 2025 budget will further affirm the government’s commitment to its programmatic promises.
Earlier, BMG reported that the 2025 state budget bill recently approved by the government envisions significant increases in both revenue and expenditures.
According to the draft, state budget revenue in 2025 is projected to reach 2.873 trillion drams (about $7.39 billion), 11% higher than the expected figure for 2024 and 22% above actual 2023 revenue levels.
Expenditures for 2025 are set at 3.482 trillion drams (roughly $8.95 billion), marking a 13% increase from the anticipated 2024 level and 37% above 2023 expenditures.
The budget deficit for 2025 is projected at approximately 609 billion drams ($1.57 billion).
