Armenia's state budget deficit reached 0.6% of projected GDP in January-July - WB

YEREVAN, September 30. /ARKA/. Armenia's cumulative state budget deficit for the January-July period reached 0.6% of projected annual GDP, according to the World Bank's "Armenia Monthly Economic Update – September 2025."
It is noted that in July, the budget recorded a deficit of 0.2% of projected annual GDP.
Tax revenues (including mortgage-related income tax) increased by 18.1% (year-on-year) in nominal terms, driven by increases in VAT collection (by 20.7%); income tax (by 14%); and corporate income tax (by 46.7%). "VAT rates were increased, which increased revenue by 29%," the study states.
According to the report, overall expenditures decreased by 4.8%.
"This was due to a 42.7% decline in capital expenditures, driven by a 39.1% drop in defense spending. Specifically, education spending increased by 19.7% due to the construction and rehabilitation of schools, as planned in the government's Five-Year Program (2021–2026). Current expenditures increased by 4.7%, primarily due to subsidies (a 21.3% increase)," the report notes.
According to the Armenian Ministry of Finance, the state budget for the first half of 2025 was executed with a deficit of 39.2 billion drams, compared to the planned deficit of 325.3 billion drams. State budget revenues for the reporting period amounted to 1,433.1 billion drams, or 102.2% of the revised budget (a 15.2% increase compared to the same period last year), while expenditures amounted to 1,472.3 billion drams, or 85.2% of the planned volume (a 19.4% increase).
In September of this year, RA Finance Minister Vahe Hovhannisyan announced plans to gradually reduce the state budget deficit from 5.5% to 4.5% in 2026 and, ultimately, to 1% in 2030. ($1 = 382.75 drams)