Government aims to cut budget deficit to 2.8% by 2028

PanARMENIAN.Net - Finance Minister Vahe Hovhannisyan announced that by 2028, the Armenian government aims to reduce the state budget deficit to 2.8% of gross domestic product (GDP). He made the statement during joint sessions of parliamentary standing committees while discussing the draft law “On the 2026 State Budget of the Republic of Armenia,” Armenpress reports.

“Compared to 2025, we have adopted a policy of fiscal consolidation, and in the coming years, up to 2028, we plan to lower the deficit to 2.8% of GDP. In 2025, this figure stands at 5.5%. The goal is to maintain stability and prevent an increase in debt servicing expenses and nominal debt levels, while also ensuring smooth investment in economic and human capital and the continuation of reforms,” Hovhannisyan stated.

The minister also noted that for the first time, the state budget includes a five-year medium-term expenditure framework instead of the previous three-year period, and this program was approved earlier than in previous years.