Tigran Galstyan, the former head of the staff of the National Assembly, has published a comparative analysis, which records a sharp increase in Armenia’s state debt service costs compared to the countries of the region.

According to the chart presented by the expert, which covers the period from 2011 to 2023, the burden of servicing Armenia’s public debt has increased from 5% of the state budget to more than 12%. Galstyan draws attention to the fact that the republic’s indicators are the highest among the CIS and regional partners and show rapid growth. For comparison, let’s note that in Georgia, Kazakhstan and Azerbaijan during the same period, the similar expenditure item remained stable, varying between 2% and 5%.

Even in Kyrgyzstan and Moldova, despite certain growth dynamics in recent years, the debt burden did not exceed the threshold of 6% in 2023, which is twice less than the Armenian index.

In his publication, the former official emphasizes that the created situation deprives the country of development resources. According to his calculations, every eighth dram of the state budget is directed not to the strengthening of defense capabilities, education, health care or infrastructure development, but to the repayment of previously assumed obligations and interest payments. The expert considers such figures to be a direct indicator of the quality of state financial policy.

The analyst warns of serious macroeconomic risks if the current trend is maintained. According to Galstyan, Armenia may face a difficult choice in the coming years. either to attract new loans solely for the purpose of servicing old debts, or to radically reduce government spending in vitally important areas. The expert summarizes that such a trajectory does not lead to development, but to deep financial dependence of the country.

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