Capital expenditures in Armenia's 2026 state budget will amount to 704 billion drams – Ministry of Finance
27.10.2025,
12:38
Capital expenditures in the 2026 budget will amount to 704 billion drams, while in 2027 and 2028, they will amount to 719 billion drams and 803 billion drams, respectively, announced Armenian Finance Minister Vahe Hovhannisyan.
\YEREVAN, October 27. /ARKA/. Capital expenditures in the 2026 budget will amount to 704 billion drams, while in 2027 and 2028, they will amount to 719 billion drams and 803 billion drams, respectively, announced Armenian Finance Minister Vahe Hovhannisyan.
He stated that capital expenditures allocated to the economic and social spheres in 2026 will exceed the level of capital expenditures in the 2025 state budget by 22%.
"We have separated capital expenditures allocated to the Ministry of Defense and economic infrastructure. "As a result, capital expenditures allocated to the economic and social spheres will amount to 3.4% of GDP in 2026, and 3.2% and 3.6% in 2027 and 2028, respectively. "43% of capital expenditures will be allocated to the defense sector in 2026," the minister said during a discussion of the 2026 draft budget in parliament.
According to Hovhannisyan, social protection expenditures will amount to 993 billion drams in 2026, and 1.06 trillion drams and 1.1 trillion drams in 2027 and 2028, respectively. He explained that compared to social protection expenditures in the 2025 state budget, the 2026 figure is 9.6% higher, while the figures for 2027 and 2028 are 9.6%. – by 17.6% and 24%, respectively.
"As a result, social security expenditures will amount to 8.3% of GDP in 2026, maintaining the 2025 level, and will amount to 8.2% and 8%, respectively, in 2027-2028," he added, explaining that the increase in social spending is due to the size of contributions to the state pension fund due to the growing number of employees.
Hovhannisyan noted that healthcare expenditures will amount to approximately 211 billion drams in 2026, 240 billion drams and 249 billion drams in 2027 and 2028, respectively.
The minister explained that the planned figure for 2026 will exceed healthcare expenditures in the 2025 state budget by 26.6%, and for 2027 and 2028, 240 billion drams and 249 billion drams, respectively. – by 44% and 50%, respectively.
"As a result, healthcare spending in 2026 will amount to 1.8% of GDP, then increase to 1.9%," he said.
According to the head of the Ministry of Finance, education spending will amount to 356.4 billion drams next year, and 298 billion drams and 321 billion drams in 2027 and 2028, respectively. These figures exceed the level set in the 2025 state budget by 21.1%, 1.3%, and 9.3%, respectively.
"Therefore, education spending in 2026 will amount to 3% of GDP, an increase of 0.3 percentage points compared to 2025," he said. The minister noted that expenditures on the sector supervised by the Ministry of Territorial Administration and Infrastructure will amount to 325 billion drams in 2026, and 334 billion drams and 365 billion drams in 2027 and 2028, respectively. These figures exceed the level projected in the 2025 state budget by 12.7%, 16%, and 26.7%, respectively. Thus, expenditures on this sector will amount to 2.7% of GDP, with a subsequent increase of 0.1 percentage points.
On September 25, the Armenian government approved the country's draft state budget for 2026. The document projects GDP growth at 5.4%, revenues at 3.9 trillion drams, and expenditures at 3.6 trillion drams. drams, deficit - 537 billion drams or 4.5% of GDP. ($1 - 383.05 drams)
He stated that capital expenditures allocated to the economic and social spheres in 2026 will exceed the level of capital expenditures in the 2025 state budget by 22%.
"We have separated capital expenditures allocated to the Ministry of Defense and economic infrastructure. "As a result, capital expenditures allocated to the economic and social spheres will amount to 3.4% of GDP in 2026, and 3.2% and 3.6% in 2027 and 2028, respectively. "43% of capital expenditures will be allocated to the defense sector in 2026," the minister said during a discussion of the 2026 draft budget in parliament.
According to Hovhannisyan, social protection expenditures will amount to 993 billion drams in 2026, and 1.06 trillion drams and 1.1 trillion drams in 2027 and 2028, respectively. He explained that compared to social protection expenditures in the 2025 state budget, the 2026 figure is 9.6% higher, while the figures for 2027 and 2028 are 9.6%. – by 17.6% and 24%, respectively.
"As a result, social security expenditures will amount to 8.3% of GDP in 2026, maintaining the 2025 level, and will amount to 8.2% and 8%, respectively, in 2027-2028," he added, explaining that the increase in social spending is due to the size of contributions to the state pension fund due to the growing number of employees.
Hovhannisyan noted that healthcare expenditures will amount to approximately 211 billion drams in 2026, 240 billion drams and 249 billion drams in 2027 and 2028, respectively.
The minister explained that the planned figure for 2026 will exceed healthcare expenditures in the 2025 state budget by 26.6%, and for 2027 and 2028, 240 billion drams and 249 billion drams, respectively. – by 44% and 50%, respectively.
"As a result, healthcare spending in 2026 will amount to 1.8% of GDP, then increase to 1.9%," he said.
According to the head of the Ministry of Finance, education spending will amount to 356.4 billion drams next year, and 298 billion drams and 321 billion drams in 2027 and 2028, respectively. These figures exceed the level set in the 2025 state budget by 21.1%, 1.3%, and 9.3%, respectively.
"Therefore, education spending in 2026 will amount to 3% of GDP, an increase of 0.3 percentage points compared to 2025," he said. The minister noted that expenditures on the sector supervised by the Ministry of Territorial Administration and Infrastructure will amount to 325 billion drams in 2026, and 334 billion drams and 365 billion drams in 2027 and 2028, respectively. These figures exceed the level projected in the 2025 state budget by 12.7%, 16%, and 26.7%, respectively. Thus, expenditures on this sector will amount to 2.7% of GDP, with a subsequent increase of 0.1 percentage points.
On September 25, the Armenian government approved the country's draft state budget for 2026. The document projects GDP growth at 5.4%, revenues at 3.9 trillion drams, and expenditures at 3.6 trillion drams. drams, deficit - 537 billion drams or 4.5% of GDP. ($1 - 383.05 drams)
