YEREVAN, December 23. /ARKA/. During a meeting on Tuesday, the Council of Elders of Yerevan approved the city’s budget for 2026. The budget outlines projected revenues of 151.4 billion drams and expenditures of 156.7 billion drams, with a significant focus on initiatives aimed at modernizing the city’s infrastructure.
Key Budget Figures for 2026
David Hakopyan, head of the accounting and revenue collection department at Yerevan City Hall, presented the detailed financial plan. The projected own receipts for 2026 are set at 94.8 billion drams. This figure represents a notable increase of 4.6 billion drams, or 5.2%, compared to the financial projections for 2025.
In addition to local revenues, the state budget of Armenia is expected to contribute a subsidy of 8.2 billion drams. This allocation is based on the principle of financial equalization, ensuring a balanced distribution of resources across various administrative units.
Further financial provisions include 1.3 billion drams specifically earmarked for financing expenses related to targeted allocations and subsidies. A substantial portion, 46.9 billion drams, has been designated for the execution of powers assigned to the mayor of Yerevan, reflecting the scope of mayoral responsibilities and planned urban development projects.
Expenditure and Financial Adjustments
Hakobyan highlighted that the planned expenditure for 2026 is set at 156.7 billion drams. This represents a decrease of 2.7 billion drams compared to the expenditure approved in the 2025 budget. This reduction is primarily attributed to two factors:
- A decrease in funds from the state budget allocated for the execution of delegated powers.
- A reduction in the subsidy amount related to financial equalization.
These adjustments reflect a strategic recalibration of financial resources, likely influenced by broader economic considerations and revised national fiscal policies.
Focus on Infrastructure Modernization
The approval of the 2026 budget underscores Yerevan’s commitment to urban development and improvement. The emphasis on infrastructure modernization initiatives suggests planned investments in critical areas such as transportation networks, public utilities, and urban planning. These efforts are expected to enhance the quality of life for residents and support the city’s ongoing growth and development.
The budget approval follows a period of economic activity in Armenia, with the World Bank reporting a cumulative growth of economic activity from January to October 2025 reaching 8.1% on an annual basis, surpassing initial forecasts. The International Monetary Fund (IMF) also noted that Armenia’s growth potential is about 5 percent per year, and the government’s fiscal policy is supportive of meeting priority spending needs while preserving debt sustainability.
The exchange rate at the time of the budget approval was 1 US dollar to 381.55 drams.
