Alexander Pracht
Armenia’s cabinet has drafted the country’s state budget for 2027. The projected budget was published by the government today.
The budget draft suggests an increase in military spending of about 9.5%, to roughly $1.7 billion. This almost equals the budget Armenia had in 2025 before it was reduced for this year, triggering widespread criticism. Although Armenia usually devotes more than 6% of its GDP to defense, analysts stress that consistent growth is necessary for modernization.
Projected spending for healthcare is expected to grow most significantly, by 64%, to roughly $960 million. This is due to the fact that Armenia continues to roll out the universal medical insurance program, launched late last year. Though citizens will be required to spend a portion of their income on the insurance, the government has said it will subsidize the fees for children, the elderly, and low-income groups, so the program requires substantial investments.
Also read: Armenia’s finance minister reveals details behind plan for universal health insurance (2025)
Additionally, the government said it plans to cut education spending slightly, by about 2%, to around $964 million, despite the fact that the government continues to pursue the creation of a major university campus outside Yerevan, a project known as the Academic City, with major investments in infrastructure and education capabilities.
The budget draft is subject to a vote in parliament by the end of the year.
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