Armenian Government Approves $9.5 Billion Draft State Budget for 2026

YEREVAN — The Government of Armenia has approved the draft state budget for 2026, which is projected to total approximately $9.5 billion—an increase of more than 5% compared to this year. According to the proposal, government expenditures next year will reach 3.628 trillion drams.

The Ministry of Defense is set to receive 563 billion drams (about $1.5 billion), which represents a decrease of roughly $265 million in military spending compared to this year.

Presenting the budget, Minister of Finance Vahe Hovhannisyan stated that economic growth is projected at 5.4% for 2026. State revenues are expected to amount to 3.091 trillion drams, including 2.972 trillion drams in tax revenues.

The Ministry of Territorial Administration will see its budget increase by 37 billion drams, reaching over 325 billion drams (approximately $850 million). Healthcare spending will also grow, with 211 billion drams (around $550 million) allocated—an increase of about 45 billion drams compared to this year.

In contrast, the Ministry of Economy will face a reduction of 5 billion drams, bringing its 2026 budget to 74.5 billion drams (about $195 million).

The Ministry of Labor and Social Affairs will remain the largest recipient of state funding, with 993 billion drams (about $2.6 billion) allocated for 2026—an increase of about 90 billion drams over the current year. Of this, approximately 591 billion drams will go toward pensions.

Funding for assistance to displaced persons from Artsakh will also increase significantly, rising from 35 billion drams this year to 55 billion drams (over $140 million) in 2026.

Additionally, the government will allocate more funds for managing Armenia’s public debt, with over 423 billion drams (about $1.1 billion) earmarked solely for interest payments.

The draft budget will now be sent to the National Assembly for further debate and detailed discussions by sector.