Armenia Unveils 2027 Budget With Nearly 614 Billion Drams Allocated to Defence

YEREVAN – Armenia’s parliamentary committees began reviewing the government’s proposed 2027 state budget on November 2, with total expenditure projected at approximately 4.072 trillion drams against revenues of 3.603 trillion drams.

The draft foresees a budget deficit of approximately 468.18 billion drams, financed through both domestic and external borrowing sources. Defence remains a major component of government spending.

The Ministry of Defence is allocated approximately 616.5 billion drams, including 613.8 billion drams for maintaining the armed forces’ combat readiness, strategic deployment and protection of Armenia’s borders.

Meanwhile, pension expenditures are projected at approximately 674 billion drams, exceeding the main defence programme’s allocation by roughly 60 billion drams.

The budget discussions come amid continuing uncertainty surrounding Armenia’s regional security environment.

Although the government has emphasized progress toward peace with Azerbaijan, opposition representatives and security observers continue to raise concerns about the country’s defence capabilities and the need for credible long-term security arrangements.

The allocation of financial resources alone does not establish whether Armenia’s military modernization requirements are being adequately addressed.

Questions remain regarding the effectiveness of defence procurement, improvements in military readiness, modernization of border infrastructure and the strengthening of domestic defence capabilities.

The proposed budget must also balance these strategic needs against growing social obligations, including pensions and essential public services.

As parliamentary scrutiny continues, the central issue will be whether the government’s financial priorities translate into measurable improvements in Armenia’s security, economic resilience and public welfare.