The country maintained double-digit income growth
Armenia closed 2025 with tax and state duty revenues exceeding budget expectations, according to Eduard Hakobyan, head of the State Revenue Committee (SRC). The results surpassed both the initial and revised fiscal targets, reinforcing the government’s revenue performance.
Revenues surpass budget benchmarks
Total tax and state duty revenue in 2025 reached 2 trillion 725.2 billion drams, representing an increase of 334.3 billion drams, or 14.5%, compared to 2024. The figures confirm that Armenia maintained double-digit revenue growth throughout the year.
Actual collections exceeded the initial state budget target of 2 trillion 720.3 billion drams, reaching 100.2% of the planned amount. Compared to the revised target of 2 trillion 729.4 billion drams, revenue performance stood at 99.8%, reflecting a high level of fiscal accuracy.
Outperformance of medium-term forecasts
Hakobyan noted that the results also exceeded projections outlined in Armenia’s 2026–2028 Medium-Term Expenditure Framework and the 2026 budget message. This overperformance strengthens the government’s fiscal position and provides greater flexibility for future spending and investment priorities.
Tax policy and compliance dynamics
According to the SRC head, the strong performance reflects a tax policy focused on dialogue, partnership, and trust between the state and taxpayers. Authorities continued efforts to improve compliance while maintaining a people-centered approach to administration.
In 2025, around 2,500 unregistered employees were identified, underscoring ongoing measures to reduce the shadow economy. At the same time, the state refunded 382.1 billion drams to businesses and individuals, highlighting the reciprocal nature of the tax system.
Fiscal implications for 2026
Exceeding revenue targets provides Armenia with an added buffer amid external economic uncertainties. Strong tax collection enhances budget resilience and supports macroeconomic stability heading into 2026.
As reported by International Investment experts, Armenia’s ability to exceed tax revenue targets in 2025 reflects both economic momentum and improved fiscal governance. Sustained revenue growth reduces budgetary pressure and strengthens the country’s capacity to navigate medium-term economic challenges.