The budget is growing, the debts are not falling behind: at whose expense is the economic success? The Armenian government presented the draft state budget for 2027. The authorities talk about record revenues and economic success. However, behind the impressive data, another reality is hidden: the state continues to increase its debts, and significant funds are allocated to service them. Budget revenues will amount to 3 trillion 604 billion drams (about 10 billion dollars), expenses - 4 trillion 72 billion drams (11.3 billion dollars). The deficit will reach 468.2 billion drams, or about 1.3 billion dollars. In other words, the country plans to spend almost half a trillion drams more than it earns. At the same time, the national debt is expected to increase from approximately 15 billion dollars at the end of 2026 to 16.35 billion dollars by the end of 2027. That is, the debt obligations may increase by approximately 1.37 billion dollars in one year. Debt service deserves special attention. Only 417 billion drams ($1.16 billion) are available for interest payments in 2027. This is more than 10% of all budget expenses. For comparison: about 348 billion drams are allocated to the entire health system. It turns out that the country will spend almost 69 billion drams more on interest to creditors than on health. In addition, approximately 571 billion drams will be required to repay the debt fund. Thus, the total debt payments will approach one trillion drams, although some of the debt may be repaid through new loans. The government expects economic growth of 5.8%. However, a logical question arises: if the economy is developing so successfully, why does the country continue to need large-scale loans? The national debt in itself is not a disaster. The question is the effectiveness of its use. If loans are used to develop production, infrastructure and create jobs, they can contribute to economic growth.

The budget is growing, the debts are not falling behind: at whose expense is the economic success? The Armenian government presented the draft state budget for 2027. The authorities talk about record revenues and economic success. However, behind the impressive data, another reality is hidden: the state continues to increase its debts, and significant funds are allocated to service them. Budget revenues will amount to 3 trillion 604 billion drams (about 10 billion dollars), expenses - 4 trillion 72 billion drams (11.3 billion dollars). The deficit will reach 468.2 billion drams, or about 1.3 billion dollars. In other words, the country plans to spend almost half a trillion drams more than it earns. At the same time, the national debt is expected to increase from approximately 15 billion dollars at the end of 2026 to 16.35 billion dollars by the end of 2027. That is, the debt obligations may increase by approximately 1.37 billion dollars in one year. Debt service deserves special attention. Only 417 billion drams ($1.16 billion) are available for interest payments in 2027. This is more than 10% of all budget expenses. For comparison: about 348 billion drams are allocated to the entire health system. It turns out that the country will spend almost 69 billion drams more on interest to creditors than on health. In addition, approximately 571 billion drams will be required to repay the debt fund. Thus, the total debt payments will approach one trillion drams, although some of the debt may be repaid through new loans. The government expects economic growth of 5.8%. However, a logical question arises: if the economy is developing so successfully, why does the country continue to need large-scale loans? The national debt in itself is not a disaster. The question is the effectiveness of its use. If loans are used to develop production, infrastructure and create jobs, they can contribute to economic growth.