The National Assembly began the third day of the four-day sittings by voting. The parliament adopted the bill “On Making Amendment to the Law ‘On Minimum Monthly Salary’” in the first reading and the draft “On Pre-School Education” in the second reading. The executive body also ratified an agreement signed between Armenia and International Development Association (IDA).

By continuing the debates of the government submitted legislative initiative “On Making Amendments to the Law ‘On State Pensions,’” the parliamentarians expressed their viewpoints. It was noted that the ARF faction decided the minimal salary of 2007-2008 to reach to the threshold of 20.000 AMD. By the characterization of Viktor Dallakyan, the secretary of “Ardarutiun”/Justice faction, the proposed additions weren’t also sufficient and he drew the legislators’ attention to the necessity of seeking additional sources of sums. As an additional sum Mr. Dallakyan noted the necessity of reducing the corruption level in the country, citing the figure published by the World Bank, according to which, Armenia is the 89^th among 159 countries in corruption index. Only the fuel shadow circulation is 1,3% of GDP, according to Viktor Dallakyan. In figures it is 55m USD.

The next agenda issue also had a social orientation. In this case the pension of the disabled and the families of deceased military servants is envisaged to increase by 20%, through making amendments to the law “On Social Security of Military Servants and Their Family Members.” At the same time the government envisaged to increase the amount of the aid by 1000 AMD given to this group for enjoying certain services. In the same amount will be increased the additional sum for each person of families consisting of 5 and more members. Both the NA Standing Committees on Social Affairs, Health Care and Environment and on Defense, National Security and Internal Affairs endorsed the legislative initiatives and proposed to adopt it.

The executive body also submitted the draft “On Making Amendments to the Law ‘On Veterans of Great Patriotic War,” through which it is envisaged to define 10.000 AMD honorable payments instead of 4.500 AMD. In case of adoption of the draft, 540m AMD will be required, which is already envisaged by the 2006 draft state budget. The NA Standing Committee on Social Affairs, Health Care and Environment greeted this abrupt growth and endorsed the draft.

By the drafts “On Regulation of Public Services and Obligatory Payments” and on making addendum to the Law ‘On RA Budget System” the government defines a new kind of obligatory payment. New savings check bond is envisaged to release through the initiative “On Making Amendment and Addenda to the RA Civil Code.” The executive body also proposed to make additional amendment to the law “On Local Self Governance.” The parliamentary leading committees endorsed all the noted drafts.

Other picture has been developed in case of government’s legislative initiative pertaining the draft “On Making Amendments and Addenda to the laws ‘On Payments of Obligatory Social Insurances’” and also on amending 5 more laws. It got the endorsement of the NA Standing Committee on Social Affairs, Health Care and Environment, and the opinions were shared in the draft in the NA Standing Committee on Financial Credit, Budgetary and Economic Affairs. Though later the Committee Chairman Gagik Minasyan endorsed the bill. The government proposed changes in the rates of social payments. In case of today’s salary up to 20.000 AMD, the accounted 5.000 AMD social payment the government proposed to be 7.000 AMD, in other accounts also to use this threshold. As Armen Alaverdyan, deputy head of state tax service adjunct to the RoA government, assured it is envisaged to have the average level of the pension 14.500 AMD in 2008, by the “Strategy Poverty Reduction Paper” program. By the same program in 2006 the same index will be 11.270 AMD, instead of today’s 9.800 AMD. There are 475.000 pensioners and 430.000 employees. The function of social insurance collecting in the result of passing to tax service from social insurance fund, in the direction of this kind in 2005 the revenues are expected to be added in 12bn AMD, said Mr. Alaverdyan and added, that additional 46bn AMD is necessary for collecting the demanded sums of 2006 and for realization of the noted program. Nearly 8bn AMD from 14 is necessary to collect by the adoption of this draft. By the information of the tax body representative, from the registered 67.000 individual entrepreneurs 47.000 do not make any payments.

Noting, that in connection with liquidation process today there is a discontent:, NA President A. Baghdasaryan tried to find out from the main speaker how they were going to realize the process. The head of the parliament considered that it should be led as far as it is possible without shocks.

Mr. Alaverdyan assured, that “the concern of the liquidation process activity is assigned to the state bodies” and additional complexities will not arise. To the NA President’s next question about the size of the necessary sum for reaching the pension up to 15 thousand - the deputy head of state tax service noted, that more than 85bn will be necessary, and the country will come nearer to this threshold only in 2008.

As it is envisaged by the Rules of Procedure, at the end of the second day of the parliamentary four-day sittings, the MPs had an opportunity to make announcements.