Defense spending in Armenia's 2025 state budget surges by 20%

The Armenian parliament has approved the state budget for next year, with 61 MPs in favor and 30 MPs (mainly opposition) against, Report informs, citing Armenian media.

According to the budget, the total expenditure will be 3.42 trillion drams ($7.8 billion), a 13% increase from this year. Defense spending is set to rise by 20% to 665 billion drams ($1.713 billion).

The country’s Ministry of Internal Affairs will see a 15% increase in its budget, amounting to 105 billion drams ($270 million), and the Ministry of Finance’s budget will grow by 13% to 399.4 billion drams ($1.029 billion).

However, there will be a 3% reduction in healthcare spending, down to 163 billion drams ($420 million), due to the completion of several general medical insurance programs.

By the end of 2025, Armenia’s state debt is expected to rise by 877 billion drams, reaching approximately 6 trillion drams ($14 billion), which will increase the debt-to-GDP ratio from 49.8% to 53.5%.

Debt service costs will also go up by 14%, totaling 394.1 billion drams ($1.015 billion). Planned budget revenues are set at 2.87 trillion drams ($7.4 billion), an 11% increase from the 2024 figures.