In the draft of Armenia’s 2024 state budget submitted to parliament for approval, the authorities plan to allocate 41 percent of capital expenditures to support the defense sector. A pro-government MP, Andranik Kocharyan, the Chairman of the Parliamentary Committee on Defense and Security Affairs, expressed during the budget debates that the upcoming year’s budget can be considered as a “security budget.”

“But the main idea placed in the content of armaments is that aside from being defensive, they must be brand new. The Republic of Armenia will never acquire used defensive armaments," the MP said.

In 2024 Armenia’s capital expenditures are projected to increase to 710 billion drams. Of this, 555 billion drams will be allocated to the Ministry of Defense, marking a 7 percent increase from 2023. Defense spending is expected to constitute 5.3 percent of the country’s GDP.

During the presentation of the 2024 state budget draft in the National Assembly of Armenia, a reference was made to the “Crossroads of Peace” by the Minister of Finance, Vahe Hovhannisyan. He emphasized that the realization of the project should involve the active participation of other countries in the region.

The finance minister mentioned that if an agreement is reached on the “Crossroads of Peace” project and it progresses through its proper phases, there are unallocated funds in the reserve fund for capital expenses. This would provide enough funds for the infrastructure development of the project. Additionally, the budget draft allocates significant funds for overall infrastructure development.