On October 31 the parliament continued to debate the 2006 draft budget. Both the representatives of the parliament political forces and executive power took floor.

The envisaged financing for educational system in 2006 will be 69bn AMD, 20% more than the comparative index of the current year. The general education sphere is of special importance in state programs, for which 53bn 265m AMD is envisaged. On the account of the increase of the expenditure the teachers’ salaries are envisaged to be increased, means are separated also for the transfer to 12-year general education, for retraining the teachers, also for providing the system with computers. An increase of salary is also envisaged for medium specialized educational institutions, 30.000AMD is defined against the previous 17.000. More than 5bn AMD is envisaged by the draft on higher and post graduate education. The state means will be increased in 1bn directed to the science the next year. By the estimation of the Minister, the utmost has been done for the sphere within the possibilities of the budget.

David Lokyan, Minister of Agriculture, gives the numbers for presenting the progress. If in 2003 the financing of the sphere of agriculture is 2bn 600AMD from the state budget, in the forthcoming year it will be 5bn 334m AMD. The executive body was led by the program of strategy of agricultural development as well as of intermediate expenditure The irrigation process, which was begun in current year, will be continued in 2006, it is envisaged to irrigate pastures of 20.000 hectares.The Minister presented that the salaries of the employees of the wood economy for the first time will be paid from the budget means, 760m AMD is envisaged for that purpose.

Aghvan Vardanyan, Minister of Labor and Social Affairssaid that the government tries to solve the social problems consistently and continuously. Especially the salaries, pensions and other payments of 2006 to the population will be increased in 20%. The envisaged sums for social insurance and social security, comparing with 2005 are increased in 8bn AMD and are 54bn. It is already the second year that the system has passed to program financing in the forthcoming year it is envisaged to implement 41 programs.

For the environmental protection sphere in the frameworks of the budget 1bn 367m will be allocated, presented Vardan Ayvazyan, the Minister of Environmental Protection. Sums will be directed also to the fish reserves in amount of 10m AMD, 19m AMD to geo-research activities and 367m AMD for especially protected territories. In this sphere also 32 programs will be financed.

The representatives of the parliamentary four factions and group expressed their viewpoints on 2006 main financial document.

Levon Mkrtchyan, head of the ARF faction highlighted the continuous nature of the budget and noted that it is already several years that being led by medium-term expenditure program a high executive is recorded, and creates opportunities of planning the directions of sphere development. The faction submitted proposals, especially on the base pension of becoming 4500 AMD. Head of the faction noted with satisfaction that the budget has social orientation. In general, the faction estimated the draft budget as a balanced one.

Mkrtich Minasyan, member of the People’s Deputy group considered that there are positive moves in the draft. First of all, comparing with recent years the budget was doubled. For the first time presenting the document to the parliament early, an opportunity of fully debate was created. The MP also considered important that the draft is of stressed social nature. By the way the group is for the proposal of the faction ARF of the basis pension to become 45000 AMD. The parliamentary group welcomed the government’s politics of increasing the salaries, pensions, increasing the sums for allowances and increasing the salaries of medical staff by 20%. Though the means directed to the science are increased by 1bn AMD in the draft the role and place of the science in Armenia needed to be reviewed, said the MP. The faction considered of great concern that from 3 capable citizens one is unemployed, and the incomes of 2/3 are from the agro and trade activity. The group is ready to say “yes” to the draft, after the debate of the submitted proposals.

Tatul Manaseryan, the MP of Ardarutiun (Justice) faction considered, that sufficient time wasn’t given to the MPs for getting familiarized with the draft budget, before estimation the document should be studied. The opposition MP had a reserved attitude towards the index of economic growth, saying that it was recovery growth. In his speech the MP didn’t ignore also the issue of the deposits, before the budget adoption a separate law on deposit compensation should be adopted, considered he. By the estimation of Tatul Manaseryan, the government doesn’t pay considerable attention to the sphere of science.

Samvel Balasanyan, head of the “Orinats Yerkir” (Country of Law) faction stressed that the draft budget of 2006 is in compliance with the “Poverty Reduction Strategy Paper” and medium term expenditure program, in which the approved 4-year program in the parliament of 2003 is reflected, which in its turn consists of the pre-election programs of coalition political forces. The head of the faction noted with satisfaction, that in the expenditure part it was succeeded to cross the threshold of 1bn AMD. He once again drew the attention of those present to the macro economic indices characterizing the 2006, to the rise of the salaries. The head of the faction stated with satisfaction especially the education system amendments and concerning the expenses directed to the sphere. The head of the faction reminded that their initiative of returning the deposits on envisaging sums in 2005 budget, got no response and noted with satisfaction that in 2006 the return of the sums will begin. The compensation of the deposits the MP observed as a social issue. The faction OYe will be for the draft budget of 2006.

Galust Sahakyan, head of the RPA faction didn’t agree that the opposition would present the draft budget in “black” and the others in “rose.” The head of the faction also didn’t agree with the sounded criticism, that the deputies haven’t read the draft, reminding the active debates of the committees. The RPA didn’t say that everything is O.K. especially that there isn’t a noticeable positive move for the people. Yet, three are many unsolved problems, said Galust Sahakyan, noting that the economy has developed and the political system was left behind. Therefore, system amendments are necessary. The head of the RPA faction also considered that more budget means are to be directed to science, but he also reminded that if a several years ago the issue of allocating 500m AMD to science was debated now they speak about 5bn AMD. He also reminded that in 2000 the state had 72m AMD inner debt, and even at that time there was a suspicion. “There are programs and we must go ahead,” said Galust Sahakyan. There should always be criticism no matter what kind of budget we'll have.

According to the Rules of Procedure of the National Assembly, the sitting is stopped for 4 days, after the end of which within 24 hours the parliamentarians will have the opportunity of presenting the proposal to the executive body. In the result of those debates, the government will submit to the parliament the final variant of the draft budget.