On October 14, the debates of the draft of the 2006 state budget continued in the National Assembly.

At the joint sitting of the NA Standing Committees on State and Legal Affairs and on Financial-Credit, Budgetary and Economic Affairs, the envisaged financing issues of the state, local self-government and judicial bodies of the power in the RA draft law “On RA 2006 State Budget” were debated.

Pavel Safaryan, Deputy Minister of Finance and Economy, noted that 35417.0mln AMD is allotted to the current expenses for the protection of legislative, executive, and judicial bodies in the 2006 state budget, which is correspondingly 136,8 and 123,4% towards the fixed relevant indexes for budget year of 2004 and for 2005 FY. The expenses of the bodies of legislative, executive and judicial authorities for 2006 are envisaged in amount of 18959,9mln AMD, which exceed the level of 2005 with 3035,6mln AMD. The growth is conditioned by the creation of the new management bodies in the result of the amendment implementation of the state government, by the increase of the fund salary of civil servants and forced executors, by the increase of the salary within 20% of the rent workers of implementing civic work, persons implementing technical services. It was noted that there are structural changes in the systems of the government, agricultural and labor and social affairs and ministries of energetic. The deputy minister added that the expenses of the government system protection are increased with 6.7bln AMD, the number of the 14,525 employees of 2005 is envisaged to be reached to 15.074, the average salary of the civil servants is to be reached to 86.700AMD in stead of the 64.000AMD of the previous year, it is envisaged to have the average monthly salary of the civil servant in the legislative body to be reached to 131.900AMD, in the executive power body – 102.900AMD, 107.100AMD in the judicial power body. It was noted that the increase of the transport expenses was nearly 459mln AMD, nearly 1bln AMD is allotted for the equipment in the management staff.

Artashes Tumanyan, Head of the staff of the RA President, noted that there aren’t essential amendments comparing with 2005, in the allotted articles for the expenses of the preservation of the staff, in 2006 it is envisaged 1,9AMD, which in comparison with the previous year has a growth of 62mln.

Hayk Kotanyan, Head of the NA Staff, stressed that a growth of 14,3% is envisaged in expenses for the protection of the staff, in which the envisaged sums for the increase of the salaries of the civil servants and technical service staff are the main part. The increases are connected with the normative changes in different services. A certain sum has also been envisaged by the article to get equipment.

Manuk Topuzyan, Head of the RA Government, said that there aren’t essential amendments in their part of 2006 state budget, it is envisaged 1.109.676.5 thousands of AMD in the expenses of the preservation of the staff.

Arushan Hakobyan, Head of the Staff of the Constitutional Court, noted that by the budget of 2006, it is envisaged to have 235.010 thousands of AMD for the expenses of the preservation of the staff. Aghvan Hovsepyan, the Procurator General, stressed that by the 2006 state budget, 1.904.263.4 thousands AMD is envisaged to allot the Procurator’s Office for the preservation of the staff, for capital restoration, for transport services and for getting automobiles.

The Ombudsperson Larisa Alaverdyan expressed her suspicions, noting that they presented an application of 171mln AMD, but the government allotted 130mln AMD. According to her, the allocation is not sufficient for the activity, only 20mln is allotted for renting the institute. As opined Mrs. Alaverdyan, the institute of the ombudsman should have its representative in at least four marzes- Shirak, Syunik, Gegharkunik, Tavush.

Robert Nazaryan, Chairman of the Public Services Regulatory Commission, A. Shahnazaryan, and Chairman of the State Committee on RA Economic Competitive Defense, M. Badalyan, Chairman of the Council of RA Civic Service noted that the allocations of 2006state budget are sufficient for the realization of the expenses for apparatus protection.

Kamo Areyan, Yerevan’s Deputy Mayor informed that they have no rejection concerning the allotted finances. In 2006, 389.760.9 thousands of AMD was allotted for the expenses for the protection of the city, 5mld AMD is envisaged to be allotted for the donation of the communities.

By the draft of the state budget of the 2006, 168.038.7 thousands of AMD is envisaged to be allotted to Aragatsotn municipality, 175.979.4 thousands of AMD to Ararat, 286.363.6 thousands of AMD to Armavir, 266.369.1 thousands of AMD to Gegharkunik, 218.836.6 thousands of AMD to Lori, 215.271.5 thousands of AMD to Kotayk, 247.598.6 thousands of AMD to Shirak, 183.419.5 thousands of AMD to Syunik, 133.832.7 thousands of AMD to Vayots Dzor and 154.005.6 thousands of AMD to Tavush marz. At the joint sitting of the NA Standing Committees on Foreign Relations and Financial-Credit, Budgetary and Economic Affairs, the issues of financing the Ministry of Foreign Affairs and the pay for becoming members to international institutions, RA foreign state debt service issues were debated.

Atom Janjughazyan, RA Chief Treasurer, presented the RA foreign state debt. In case fully receiving the means from foreign sources, envisaged by the law of 2005 on state budget, the foreign state debt of RA (credit responsibilities of the RA Government and the RA CB and allotted foreign guarantees) at the end of 2005 will be nearly 1227mln USD.

It’ll be nearly 102.8mln USD during 2005 on foreign responsibilities. In 2005 the general service will be nearly 65.3mln USD on foreign state debt. Only on RA Government (involving the guarantee service) in 2005 it’ll be nearly 28.7mln USD, 19.3mln USD is reduction and 9.4mln USD percentage pay (interest.) In the direction of the CB responsibilities the service will be 36.6mln USD, 35.6mlnUSD from which is to be covered and 1mlnUSD – the interest pay.

Pavel Safaryan, Deputy Minister of Finance and Economy, presenting the means of protecting the activity of foreign policy, noted, that it is envisaged to allot 8.117.820.8 thousands of AMD. The foreign political institution will be allotted 820.368.6 thousands of AMD, 700.570.7 thousands of AMD from which will be allotted for the expenses of the preservation of the Ministry of Foreign Affairs, 119.797 thousands of AMD - to RA state service, 1.053.543.3 thousands of AMD will be the membership pays for Armenia to international institutions, the expenses for the preservation of RA embassies and missions are increased and will be 4.164.784.7 thousands of AMD, 200.000.0 thousands of AMD will be allotted for the purchase of the buildings of the embassies. It was noted that the salary of the diplomatic employees of MFA will be increased by 40%.

Touching upon the allotted means to the sphere, Gegham Gharibjanyan, Deputy Minister of Foreign Affairs, noted that the sums allotted to the ministry were sufficient and will enable to pursue a productive foreign policy.