Armenia will modernize the state procurement system. minister

Against the backdrop of impressive economic growth in 2025, Armenia is preparing for a large-scale digital transformation. The outdated public procurement system will finally be a thing of the past, giving way to an innovative platform developed by the global IT giant, which is scheduled to launch in early 2027.

RA Finance Minister Vahe Hovhannisyan announced the expected fundamental changes on March 23 at the session of the National Assembly’s Committee on Financial Credit and Budgetary Issues. Presenting the 2021-2025 performance of the government program, the head of the department noted that the existing electronic platform for public procurement is hopelessly outdated and no longer meets the growing volumes of public expenditures and the pace of reforms. In order to solve this problem, the government has already held an international competition and signed a contract with a world-renowned technology company specializing in similar solutions.

Now the parties are discussing in detail the road map for the introduction of the new system, which will provide ample opportunities for in-depth analyzes and increasing the transparency of processes.

Despite the ambitious plans, the minister acknowledged the fact that there are some obstacles on the way to full digitization. In particular, some communities still prefer paper document circulation, but the government intends to complete the complete transition to electronic format already this year. Another acute problem remains the shortage of qualified professionals in the field of procurement.

For the comprehensive solution of these issues, the executive will present a large package of legislative initiatives next week, which is intended to prepare the ground for the full launch of the new platform from January 1, 2027.

The need for infrastructure modernization is directly dictated by the rapid growth of the country’s economy. According to the published data of 2025, the GDP per capita in Armenia reached 9,474 dollars, increasing by 10.7% in one year in dollar terms, and almost 2.5 times compared to 2017.

With economic growth of 7.2% recorded last year, the five-year average annual index was an impressive 7.9%.

The economic rise was logically reflected on the state treasury. In 2025, budget revenues exceeded 2.88 trillion drams, registering an increase of almost 12%. Due to this, the government managed not only to exceed the tax collection plan, but also to direct record funds to the development of the country. The capital expenditures of the budget increased by 26%, exceeding 702 billion drams.

At the same time, investments in economic and social sectors, including subsidies to communities, increased by almost a third compared to the previous year, exceeding 2018 indicators by 3.5 times.

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