Armenian Finance Minister Vahe Hovhannisyan presented a forecast for the budget deficit in 2025 during parliamentary discussions on a draft proposal to secure budget support loans.
According to the minister, the deficit funds will be directed towards capital expenditures and measures aimed at long-term economic capacity building for the country.
In 2024, the budget deficit will amount to 4.6% of GDP, exceeding the generally accepted level of 3%. The minister emphasized that despite a deficit of $1.24 billion, the government executed capital expenditures totaling $1.8 billion.
This indicates that more funds were allocated to improving the country’s economic and defense infrastructure than the actual size of the deficit.
On October 24, the country’s parliament is reviewing the possibilities of securing additional loan funds to support the budget amid the growing deficit.
