The Armenian government has approved the 2027 state budget draft, projecting 5.8% economic growth, and will submit it to the National Assembly for approval.
Under the draft, Armenia’s 2027 consolidated budget revenues are projected at 3 trillion 829.9 billion drams, while expenditures are expected to total 4 trillion 298.1 billion drams. The budget deficit is projected at 468.2 billion drams.
The government expects economic growth of 5.8% in 2027. In the medium term, average annual economic growth is projected at around 6%.
According to the government’s assessment, knowledge and innovation will be among the key drivers of economic growth. The plan envisages developing an economy based on creating technological and innovative products while continuing infrastructure development.
The state budget draft projects that the government debt burden will remain at around 47% in 2027-2028 before declining to approximately 46.4% until 2029.
As part of its expenditure policy, the government plans to reduce the share of current spending while maintaining capital expenditures above their historical average. By 2029, capital expenditure is projected to reach 5.9% of GDP.
At the same time, the share of current expenditures in GDP is expected to gradually decline from the 24.4% projected for 2026 to 22.5% in 2029.
To increase budget revenues, the government plans to improve tax administration, continue efforts against the shadow economy and use tax legislation to create a more predictable environment for investors.
The government also plans a continued increase in the tax-to-GDP ratio. According to the draft, the indicator is expected to reach 25.7% in 2029. (Pan.am)