ArmInfo.The public debt-to-GDP ratio decreased in 2025, but the debt-service burden remains high. This is stated in the analysis of the Luys Foundation, which this time examined the performance indicators of the 2025 state budget.
Despite the increase in the absolute volume of public debt, the government's debt-to-GDP ratio decreased from 47.7% to 47.2%. The Fund called this decrease a positive trend, but debt-service costs remain high and a concern.
In particular, interest payments in 2025 amounted to 349.1 billion drams, or 10.6% of total budget expenditures. "The high level of interest payments is a problem, as a significant portion of budget funds is allocated to debt servicing, limiting their use for other priority areas, including capital investments and social programs," the analysts noted.
As a reminder, the 2025 state budget of Armenia ended with revenues of 2 trillion 886.5 billion drams (an execution rate of 101.3%) and expenditures of approximately 3.3 trillion drams. The budget deficit was recorded at 3.7% of GDP. Economic growth amounted to 7.2%, and tax revenues exceeded 2.7 trillion drams. Revenues amounted to 2 trillion 886.5 billion drams (an increase of approximately 12% compared to 2024), while tax revenues and state duties totaled 2 trillion 725 billion drams. Expenditures under the main economic law amounted to 3.3 trillion drams.
Significant funds were allocated to infrastructure development and the social sphere. For example, the actual expenditures of the Ministry of Labor and Social Affairs amounted to 874.1 billion drams. Capital expenditures reached 6.2% of GDP, exceeding the budget deficit (by 283.8 billion drams).
The RA public debt as of March 31, 2026, amounted to 5.311 trillion drams, an increase of 11 billion drams compared to the previous period.
It is worth noting that Armenia's public debt exceeds $14.5 billion, which is approximately 52.9% of the country's GDP. The per capita debt burden is approaching $4,700 per person. The following indicators stand out in the structure of the total public debt: external debt is approximately $6.9 billion, and domestic debt is also approximately $6.9 billion.
