News - Armenian Parliament Approves 2025 Budget Execution Report

On June 17, the Armenian National Assembly ratified the yearly report on the execution of the national budget for the year 2025. In that fiscal year, Armenia experienced a robust economic growth rate of 7.1%, aligning with the average growth rate of 7.9% over the period from 2021 to 2025. Impressively, the GDP per capita in the nation saw a significant increase, soaring from $4,750 to nearly $9,500, doubling in value. The Minister of Finance, Vage Ovannisyan, while presenting the report in parliament, highlighted the noteworthy rise in capital expenditures, which ascended by 145 billion drams to achieve 6.2% of GDP in 2025. This growth represents a threefold increase compared to 2021 levels. Conversely, current expenses saw a reduction in their share, descending from 25.9% in 2021 to 23%. This reduction indicates a strategic shift towards channeling more resources into future investments rather than immediate consumption. The budget deficit remained steady at an average of 3.2%. The overall budget revenues amounted to 2.886 trillion drams, a notable portion of which, 2.725 trillion drams, came from tax collections and state duties. This figure surpasses the previous year's revenues by over 334 billion drams, reflecting a tangible economic upturn. Prime Minister Nikol Pashinyan pointed out that since 2017, tax revenue inflows have remarkably grown by 135%, effectively doubling since the 'Velvet Revolution' of 2018. This milestone signifies a steady and sustainable economic trajectory, with the economy expanding by 53% since 2018, along with a more than twofold increase in GDP per capita. Pashinyan further reiterated the government’s commitment to pursuing economic and political programs that reinforce Armenia's burgeoning fiscal health. The exchange rate, as of the report, stands at 368.06 drams to the dollar, underscoring stability and consistent economic management.