Construction Increased by 20% from January to August, Says Head of the State Revenue Committee

The government has approved a reallocation and amendments to the law on the state budget of the Republic of Armenia for 2025, as well as changes to Decision No. 2060-N of December 27, 2024 of the Government of the Republic of Armenia.

“This is about the need to increase the resources allocated for the return of income taxes related to the payment of mortgage loan interest,” explained the head of the State Revenue Committee, Edward Hakobyan.

“From January 1, 2025, as we all know, the restrictions of the income tax return system directed at the payment of mortgage loan interests have entered into force. These restrictions, combined with historical dynamics, have led to a situation where the number of beneficiaries has sharply increased, especially at the end of 2024, when the state budget was already approved. In 2024, we had about 50,000 beneficiaries. This year, that number has already risen to 62,000, meaning an increase of 12,000 beneficiaries. Due to the increase in the number of beneficiaries, there has been a need for inter-budget reallocations throughout the year. Specifically, the 2025 budget had planned for 84 billion AMD, and by January-September we have already spent 70 billion AMD from that amount. This is more than what we spent in the entire previous year, as we had 69 billion AMD last year. Considering these trends, in order to have adequate means and to properly support our citizens benefiting from this program, there is a need to increase our annual program by an additional 12.6 billion AMD, which we propose to do at the expense of savings from the separate program of the state budget. As a result, by the end of the year, we will reach about 100 billion AMD, more specifically, 97 billion AMD. This indicates a projected increase of about 28 billion AMD compared to 2024. Such an increase has never been recorded since the initiation of this program,” said Hakobyan.

“Let us note that the construction sector has come out of the shadows in such large volumes,” emphasized Deputy Prime Minister Mher Grigoryan. “The sector has been significantly stimulated, and it may be the only sector that currently has a fairly high growth. If we look at January-August, construction has increased by 20%. In terms of our tax payments, it is one of the key sectors, a major taxpayer. Regarding future trends, current forecasts suggest that we will have a growth trend in the next one to two years, after which it will return to normal systems against the backdrop of restrictions,” added Edward Hakobyan.