Opposition MP Artur Khachatryan warns of a critical surge in Armenia’s national debt, with interest payments expected to surpass combined spending on healthcare and education in 2025.
As of the first three quarters of this year, the national debt has already reached $12.5 billion, evenly split between external ($6.29 billion) and domestic ($6.20 billion) borrowing.
A particular concern is the projected interest payments on this debt, which will exceed $1 billion in 2025. This amount is higher than the combined budget for healthcare, education, and key government operations, including the offices of the president, prime minister, and parliament.
According to Khachatryan, the significant costs of debt servicing are forcing the government to cut funding in critical areas - defense, economy, healthcare, and education. Meanwhile, economic growth remains around 5%, which is insufficient to manage the rising debt effectively.
The situation could further worsen due to the expanding budget deficit. Originally forecasted at $880 million at the start of 2024, the deficit has now reached $1.25 billion, a trend that may continue into the future.
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).
