Public finance contributes 49.61% of total development finance in Armenia, with international public finance accounting for 28.15% of development finance resources. Private lending to the private sector is the primary financing flow at 34.5%; while domestic and external investment only account for 8% of development finance. This was assessed via the Development Finance Assessment (DFA), which is the first systemic map of development finance flows in Armenia, carried out as part of the Joint SDG Fund’s “Making Finance work for transformative change in Armenia: UN-locking Finance for Armenia 2030.” In order to attract private investment, a “Feasibility Study on Innovative Finance Instruments” provided valuable insights and recommendations on the most effective and suitable innovative finance instruments and mechanisms for the region.

Expanding on available evidence, UNDP, UNICEF, and WFP developed an Integrated National Financing Framework (INFF) roadmap to improve public expenditure efficiency and promote private investments in Armenia. With UN support, Armenia integrated detailed costing and funding projections from public and private resources into Labor and Social Protection, Food Security, and Education sector strategies, harmonized with the SDGs. The project also introduced a Climate Change Financial Framework (CCFF) to help the government mobilize, manage and target climate finance.