Armenia’s public debt is expected to remain below 50% of GDP over the medium term, Finance Minister Vahe Hovhannisyan said during a government Q&A session in parliament.
He said debt servicing costs would stay within 11% of budget revenues, while the fiscal deficit would amount to 3.4%. The minister noted that the deficit for 2026 had been planned at 4.5%.
Hovhannisyan added that the government’s commitment for the coming period is to bring the medium-term deficit down to below 2%.
Commenting on the 2027 state budget draft, the minister said revenues would exceed 4 trillion drams. He said increases would be secured across all areas and that decisions adopted by the government in the previous period would be implemented.
He stressed that the 2027 budget would effectively be the first budget under the government’s new programme and would lay the groundwork for the effective implementation of other plans. Earlier, the Finance Ministry said Armenia’s public debt stood at 5.12 trillion drams, or $13.9 billion, as of June 30, 2026, compared with 5.30 trillion drams on December 31, 2025.
On October 1, the government approved the draft law on Armenia’s 2027 state budget. Under the draft, consolidated budget revenues for 2027 are projected at 3.8 trillion drams, expenditures at 4.2 trillion drams, the deficit at 468.2 billion drams, and economic growth at 5.8%.
