Defense Spending in Armenia to Decrease by Nearly 16% in 2026 as Government Approves Budget Proposal

The Armenian government has approved the draft law on the state budget for 2026 during its meeting. Finance Minister Vahe Hovhannisyan stated that the budget aligns with the priorities of the government's program and includes significant initiatives in social, educational, health, economic, and infrastructural sectors.

In 2026, defense spending in Armenia will be reduced by nearly 16%. According to the draft budget published on the government’s website, defense expenditures will reach 560 billion 98 million drams, which will cover the maintenance of combat readiness ensuring strategic stability of the Armed Forces, and the protection of the state borders from external threats.

The draft state budget allocates 563 billion 127 million drams to the Ministry of Defense. It is noteworthy that in 2025, Armenia had increased its military spending by 20%, reaching 664 billion drams.

Prime Minister Nikol Pashinyan had previously announced that there would be no significant increase in defense spending in 2026. "There will be no significant increase in defense spending in the 2026 state budget, or it will not happen at all. This is logical. Of course, we will continue to analyze the situation operationally," Pashinyan stated.