If we were to speak about the general features of the 2027 state budget, then first, perhaps, is the tax-to-GDP ratio, which is set to improve by 0.6 percentage points. The capital expenditures will amount to approximately 5.7% of GDP, the state budget deficit will stand at 3.4% down from the 4.5% planned for 2026, the public debt will stabilize at around 47%, and the economic growth over the medium term is expected to be in the range of 6%. The RA Minister of Finance Vahe Hovhannisyan said, at the joint sitting of the standing committees of the National Assembly on November 2, submitting for debate the draft law On 2027 State Budget of the Standing Committees of the National Assembly.
In his report, the Minister touched upon the general indices of the state budget, the current economic developments, the macro-economic forecasts and fiscal framework.
It was particularly, noted that in 2029, the tax-to-GDP ratio will reach 25,7%, the capital expenditures – 5,9%, the debt of the Government will decrease 46,4%, and the deficit will be below 2 per cent.
The Minister referred to economic developments in the world, noting: “Certain stabilization trends are being observed in the U.S. and the Eurozone; in China, weak domestic demand continues to constrain economic development; and in the Russian Federation, some activity in domestic demand has been noted in recent months. The inflationary pressures persist in Russia, and the policy interest rate has been maintained at 14 percent level. It is noteworthy that the budget deficit has reached 2.5 percent during the January-August period, compared to 1.8 percent the previous year. Against the backdrop of ongoing tensions in the Middle East, the inflationary pressures persist in the U.S. and the Eurozone. The Minister also presented other data.
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According to Vahe Hovhannisyan, the level of tax revenues for 2027 is designed at 3 trillion 463 billion drams. The capital expenditures in the coming year will amount to 761 billion drams, and by 2029, they will reach nearly 1 trillion drams, almost – 957 billion drams. 44 percent of these capital expenditures will be directed toward meeting the needs of the Ministry of Defence.
The budget for the Ministry of Labor and Social Affairs was planned at 1 trillion 84 billion drams, expenditures are set to increase by 9.2 percent, and which will amount to 8 percent of the GDP.
Regarding the Ministry of Health, expenditures in the coming years will be in the range of approximately 350 billion drams. There is a significant increase – about 63.9 percent – compared to 2026, with expenditures amounting to 2.6 percent of the GDP.
There is also a continuous increase regarding the Ministry of Education, Science, Culture and Sports; the target is to raise its share of the GDP from 3.2 percent in 2027 to 3.9 percent by 2029. Compared to 2026, expenditures in this sector have increased by 3.8 percent.
Expenditures in the Ministry of Territorial Administration and Infrastructure are set to increase by 11.6 percent compared to 2026; in 2027, these expenditures will reach 2.7 percent of GDP, amounting to 362 billion drams.
Vahe Hovhannisyan also stated that state budget revenues in 2027 will increase by approximately 500 billion drams compared to 2026.
The total expenditures in 2027 will amount to 4 trillion 72 billion drams, with current expenditures at 3 trillion 311 billion drams and capital expenditures at 771 billion drams.
The Minister answered the MPs’ various questions.
