Armenia’s Parliamentary Committee on Financial-Credit and Budgetary Affairs today approved the government’s 2026 state budget bill presented by the government

The bill now goes to the parliament for debate.

The government’s bill estimates that Armenia’s gross domestic product will reach AMD 11.934 trillion (US$ 31.199 billion) in 2026, reflecting an economic growth rate of 5.4%.

State budget revenues are projected at AMD 3.091 trillion, of which tax revenues will amount to AMD 2.973 trillion.

State budget expenditures for next year are projected at AMD 3.628 trillion, of which current expenditures will amount to AMD 2.924 trillion and capital expenditures to AMD 704 billion.

This represents 5.9% of GDP. Overall, expenditures will account for 30.4% of GDP, down 0.8 percentage points from the expected 2025 level.

The forecasted 2026 deficit is AMD 537 billion, 4.5% of GDP, down 1 percentage point from this year’s 5.5% deficit.

In the medium term, the government seeks to reduce the deficit to 2.8% of GDP to keep the debt-to-GDP ratio at a manageable level.