Armenia has made significant progress in its development journey by improving its macro-fiscal management towards becoming an upper-middle income country in 2018. With its prudent and disciplined macro-fiscal policy management, Armenia also demonstrated its ability to withstand shocks in recent years. Despite this, Armenia needs to address key constraints to support more inclusive and sustainable growth, by improving its spending efficiency and meantime to withstand with the spending pressures due to government ambitious reforms plans and the recent refugee crisis. This Public Finance Review (PFR) seeks to address the critical questions associated with these challenges. As a landlocked country with limited natural resources, improving fiscal performance, enhancing human capital, and boosting productivity are crucial for Armenia's future prosperity. The recent refugee crisis has further underscored the importance of mobilizing resources and optimizing the use of public resources. Some of the questions that this PFR seeks to address include: How can public finances simultaneously increase its spending efficiency while improving human capital? Is Armenia's education system equipped to provide the necessary skills for the future generation in an equitable way? How can the country mobilize additional resources to achieve these goals without impeding growth or exacerbating inequity?