The Armenian government has unveiled an ambitious plan to drastically reduce its budget deficit over the next five years, aiming to bring it down from the current 5.5 percent to just 1 percent by 2030. Finance Minister Vahe Hovhannisyan announced the initiative at a press briefing, highlighting the adoption of the government’s new mid-term expenditure framework.

“This is a very bold and ambitious document,” Hovhannisyan said. “Why do I call it that? Because with this mid-term spending plan, we’re showing our commitment to fiscal discipline. The 2025 budget projects a 5.5 percent deficit, but we plan to reduce it each year, targeting a 1 percent deficit by 2030. That’s a significant step—and it will require strong efforts to balance fiscal consolidation with the continuation of key strategic expenditures.”

He stressed that the government aims to implement deficit reduction without undermining essential development goals or cutting critical public investments.

Alongside these fiscal reforms, Armenia is also experiencing a notable uptick in tourism. According to the Tourism Committee, 181,436 international visitors entered the country in May—up from 167,049 during the same period in 2024. In the first five months of 2025, most visitors came from Russia (37 percent), followed by Georgia (15 percent) and Iran (8 percent). This tourism growth is seen as a positive signal for the broader economy and a supportive factor in the government’s fiscal strategy.