During a session of the National Assembly of Armenia on December 3, Finance Minister Vahe Hovhannisyan presented an updated draft of the 2025 state budget, with significant adjustments to key indicators.
According to the new estimates, the country’s GDP in 2025 is expected to reach $27.9 billion, which is $405 million lower than the initial forecast. The economic growth forecast has also been reduced by 0.5 percentage points to 5.1%.
State budget revenues are projected to total $7.3 billion, $91 million less than previously planned. This decrease is attributed to a revision of tax revenues while maintaining their share of GDP at 25%. At the same time, the volume of official grants has increased by $4.1 million.
The expenditure side of the budget has been reduced by $104.6 million, now amounting to $8.8 billion. Of this, $6.9 billion is allocated for current expenses, and $1.9 billion for capital investments. According to the minister, the main reduction in expenditures comes from a decrease in macro reserves by $123.8 million, which were initially earmarked for managing risks associated with potential GDP declines.
The budget deficit remains at 5.5% of GDP, amounting to $1.5 billion, which is $13.8 million less than the initial version. The government’s reserve fund has been increased by $8.5 million.
