Armenian watchdog calls large state bonuses ahead of elections ‘political corruption’

Large bonuses paid to senior Armenian officials and other employees of government agencies at the end of 2025 amount to “political corruption”, according to Varuzhan Hoktanyan, Project Director of Transparency International Anti-Corruption Center (TIAC).

Speaking to Panorama.am on Friday, Hoktanyan said the timing and scale of the payments suggested they were politically motivated rather than based on performance.

“In previous years, either bonuses were not so large, or they did not spark public outcry,” he said. “However, awarding large bonuses in an election year amounts to political corruption as recipients are expected to vote for the ruling Civil Contract party in the parliamentary elections and encourage others to follow suit.”

Hoktanyan argued that the hefty bonuses were not based on “good performance” but were aimed at ensuring political loyalty. By 25 December 2025, 3.58 billion drams from the government’s reserve fund had been allocated for bonuses across the state system.

According to Hoktanyan, the payments were based on several government decisions, including budget reallocations approved under Armenia’s 2025 state budget law, amendments to a December 27, 2024 government decree setting coefficients for incentive funds and a November 27, 2025 decision approving a pilot system for performance evaluation and incentive payments in selected government bodies.

Under these decisions, approximately 381.8 million drams were allocated specifically for performance-based bonuses, he said.

The hefty bonus payments to government officials, which total billions of drams, have drawn criticism from public figures, politicians and economists, who have described them as a “plundering” of the state budget.

Commenting on Prime Minister Nikol Pashinyan’s recent remarks that high compensation is necessary to retain ministers, deputy ministers, and department heads, Hoktanyan said officials should be judged on performance, not on whether they remain in office.

“I would not call it budget plundering if it were transparently proven that their work delivered real benefits,” he said. “In that case, the bonuses could be considered deserved, although the 3.5 billion drams could have been spent on other priorities.”

However, he added that if independent experts determine that the officials did not merit the large bonuses, “then it is plunder”.

Armenia is scheduled to hold parliamentary elections in June 2026.