YEREVAN – On Wednesday, the Armenian National Assembly adopted the updated 2025 state budget bill with 66 votes in favor and 30 against.
According to the approved draft, economic growth in 2025 is projected at 5.1 percent, down from the previously anticipated 5.6 percent. State budget revenues are expected to reach approximately 2.84 trillion drams, which represents a reduction of 35.5 billion drams from the initial estimate. Tax revenues are also forecasted to decrease by 39.6 billion drams.
The revised draft outlines state budget expenditures of 3.4 trillion drams, marking a decrease of 40.8 billion drams. This includes 2.7 trillion drams in current expenditures and 734 billion drams in capital expenditures. (Exchange rate: $1 = AMD 399.59.)
Finance Minister Vahe Hovannisyan attributed the revisions to a slowdown in Armenia’s GDP growth. During budget discussions on November 12, Hovannisyan noted that the domestic economy is expected to grow by 5.8 percent this year and 5.6 percent next year.
The final version of the budget, approved by the parliament, includes a more than 7 percent increase in public spending, projected at 3.44 trillion drams ($8.6 billion). In contrast, government expenditures this year were set to rise by 23 percent.
National defense stands out as the sole area receiving significantly increased funding in 2025. Military spending will grow by 20 percent, reaching almost 665 billion drams (approximately $1.7 billion).
Hovannisyan emphasized the need for cautious public spending due to the slower economic growth while reaffirming the government’s commitment to intensifying efforts to combat tax evasion.
