## Evaluating Armenia’s Fiscal Framework

_Selected Issues Papers, December 30, 2025_

## Source details

**Canonical URL:** [Evaluating Armenia’s Fiscal Framework](https://www.imf.org/en/publications/selected-issues-papers/issues/2025/12/30/evaluating-armenias-fiscal-framework-572927)

## Other formats

- [Markdown version](/en/publications/selected-issues-papers/issues/2025/12/30/evaluating-armenias-fiscal-framework-572927/index.md)
- [Structured JSON version](/en/publications/selected-issues-papers/issues/2025/12/30/evaluating-armenias-fiscal-framework-572927/index.json)
- [Bundle manifest](/en/publications/selected-issues-papers/issues/2025/12/30/evaluating-armenias-fiscal-framework-572927/bundle-manifest.json)

## Bibliographic details
- Authors: Masud Al Taj, Nazim Belhocine, Vahram Janvelyan, Ervin Prifti
- Published: December 30, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229033732.018

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### Summary findings
- The paper evaluates Armenia’s fiscal framework, focusing on fiscal rule design and implementation.
- Despite the 2018 reforms strengthening the Armenia’s fiscal rules, limitations persist: rules are somewhat procyclical and complex, ex-post enforcement is not legally binding, coverage is restricted to central government, and operational flexibility is limited.
- Armenia’s fiscal rules have served the country well, but further improvements could be considered.

### Limitations and design weaknesses
- Rules are somewhat procyclical and complex.
- Ex-post enforcement is not legally binding.
- Coverage is restricted to central government.
- Operational flexibility is limited.

### Recommended reforms and policy options
- Upgrade fiscal rules to improve countercyclicality.
- Simplify rule design.
- Broaden coverage beyond the central government.
- Strengthen transparency and enforcement mechanisms.
- Consolidate expenditure rules.
- Formalize escape clauses.
- Expand coverage.
- Empower independent oversight.

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## Content in this bundle

- **1. Fiscal Rules**
  - [1. Fiscal Rules (Markdown version)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025155.pdf.md){rel="alternate" type="text/markdown"}
  - [1. Fiscal Rules (PDF)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025155.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/12/30/evaluating-armenias-fiscal-framework-572927_