Defense spending cut in Armenia for 2026 counterbalanced by significant surge in 2025-Pashinyan

YEREVAN, September 10. /ARКА/. During a government Q&A session in parliament on Wednesday, Armenian Prime Minister Nikol Pashinyan addressed a query regarding the anticipated trends in defense spending amid geopolitical changes.

"In 2025, there was a sharp and disproportionately large rise in defense spending compared to 2024. We made considerable defense investments, some of which were allocated to settle future debts and obligations, including those in the defense sector. Specifically, for loans designated for defense that we are required to repay in 2030 or 2035, we deemed it prudent to alleviate the future debt burden," he stated.

Pashinyan emphasized that, according to the medium-term expenditure program, defense spending in 2026 is expected to grow naturally compared to 2024.

"In other words, had there not been an abrupt disproportionate increase of 115 billion drams in 2025, and had the situation been normal, we would have seen natural growth in 2023, 2024, 2025, and 2026. The fact that we do not anticipate growth in 2026 compared to 2025, but rather a decline, is primarily attributable to this situation," he explained.

While acknowledging other influencing factors, the prime minister mentioned that he could present these details to parliament in a closed session if necessary.

"The policy we are implementing not only does not threaten our security system or render it vulnerable; on the contrary, we are undergoing a process of natural development that will persist," Pashinyan concluded. Analysts from the international rating agency Fitch Ratings have noted that a sustained decrease in geopolitical risks could foster Armenia's economic growth and mitigate exchange rate volatility and fiscal risks by lowering defense expenditures in the medium term.-0-