ArmInfo. In 2027, the GDP-to-tax ratio is planned to improve by 0.6 percentage points. This was announced by RA Finance Minister Vahe Hovhannisyan on November 2, while presenting the draft 2027 state budget to the National Assembly committees.
According to him, the tax-to-GDP ratio is planned to be increased to 25.9% next year, but this figure will slow in the medium term, as it is impossible to sustain such a high level of growth in this ratio over a long period of time. Hovhannisyan reported that capital expenditures will account for 5.7% of GDP, and the state budget deficit will be 3.4% of GDP, compared to 4.5% this year. At the same time, the public debt will stabilize at 47%. Annual economic growth in the medium term is planned at 6%.
The minister also noted that capital expenditures will increase by 5.9%. At the same time, public debt will decrease by 46.4%, and the state budget deficit will decrease by 2% compared to the current year.
According to the draft state budget, state treasury revenues will amount to 3 trillion 603.8 billion drams, including taxes and state duties of approximately 3 trillion 462.7 billion drams, subsidies of 14.2 billion drams, and other revenues of 126.9 billion drams. Revenue growth compared to the expected 2026 level will be approximately 11.9%. Expenditures will amount to 4 trillion 72 billion drams. The budget deficit will amount to 468.2 billion drams, or approximately $1.3 billion. The deficit is planned to be financed from both domestic sources (187.5 billion drams) and external sources (approximately 280.7 billion drams). Armenia's nominal GDP in 2027 is expected to be 13.614 trillion drams, compared to 12.465 trillion drams in 2026.
