Armenia’s finance minister, Vahe Hovhannisyan, revealed that the government is aiming for a debt-to-GDP ratio of 53.5% by the end of 2025 during discussions about next year’s budget with Cabinet ministers. The draft state budget for 2025 includes a deficit of 609 billion dram.
Hovhannisyan highlighted that the 2025 tax-budgetary framework prioritizes high levels of capital expenditures, leading to a budget deficit of 5.5% that will eventually decrease to 3% in the mid-term. This strategic approach aims to maintain a stable debt burden, resulting in the projected debt-to-GDP ratio of 53.5% by the end of 2025.