Armenia's state budget deficit in March was equivalent to 0.1% of estimated annual GDP – WB
20.05.2026,
10:03
In March, Armenia recorded an overall budget deficit equivalent to 0.1% of estimated annual GDP, according to the World Bank's "Armenia Monthly Economic Update – May 2026."
YEREVAN, May 20. /ARKA/. In March, Armenia recorded an overall budget deficit equivalent to 0.1% of estimated annual GDP, according to the World Bank's "Armenia Monthly Economic Update – May 2026."
The study notes that total revenues and grants in nominal terms increased by 16.7% (y-o-y) in March.
"Tax revenues increased significantly – by 21.3% – thanks to active collection of environmental taxes, which increased more than 12-fold after a decline the previous year; income taxes – by 10.3%; state duties – by 50.9%; and VAT – by 4.5%," the document notes.
World Bank analysts indicate that overall expenditures declined by 1.3%, driven by a 24% decline in capital expenditures, primarily due to lower defense spending.
"Current expenditures increased moderately by 2.1%, offset by an 8.3% year-on-year decline in social benefits. Following the introduction of universal health insurance in 2026, health expenditures by functional classification, which primarily represent current expenditures, rose sharply in March (a 2.5-fold increase)," the report states.
In the first quarter of 2026, an overall budget surplus equivalent to 0.5% of estimated annual GDP was recorded, against a budgeted deficit of 1.7% of GDP for the period.
The study notes that total revenues and grants in nominal terms increased by 16.7% (y-o-y) in March.
"Tax revenues increased significantly – by 21.3% – thanks to active collection of environmental taxes, which increased more than 12-fold after a decline the previous year; income taxes – by 10.3%; state duties – by 50.9%; and VAT – by 4.5%," the document notes.
World Bank analysts indicate that overall expenditures declined by 1.3%, driven by a 24% decline in capital expenditures, primarily due to lower defense spending.
"Current expenditures increased moderately by 2.1%, offset by an 8.3% year-on-year decline in social benefits. Following the introduction of universal health insurance in 2026, health expenditures by functional classification, which primarily represent current expenditures, rose sharply in March (a 2.5-fold increase)," the report states.
In the first quarter of 2026, an overall budget surplus equivalent to 0.5% of estimated annual GDP was recorded, against a budgeted deficit of 1.7% of GDP for the period.
