ArmenPress
Nov 15 2004
PARLIAMENT OPENS DEBATE ON 2005 DRAFT BUDGET
YEREVAN, NOVEMBER 15, ARMENPRESS: The Armenian parliament began
today debates over 2005 draft budget, that has set revenues at 327.9
billion drams, including also official transfers and expenditures at
375.4 billion drams. The budget deficit is projected at 47.5 billion
drams.
The draft budget foresees an 8 percent GDP growth for next year
and a 3 percent GDP deflation and inflation. The exchange rate of one
US Dollar is set at 535 US Dollar.
Presenting the draft budget to lawmakers, prime minister Andranik
Margarian said it did not differ from 2004 budget in terms of its
logic, essence and strategic approaches, being based on the
fundamentals of the Poverty Reduction Plan and approved medium-term
expenditures.
He said the projected volume of the deficit is 3.3 billion less
that the 2004 deficit. “We are working to get rid of the practice to
cover the deficit from foreign credit sources and trying each year to
decrease its volume in view of the GDP growth and domestic
resources,” he said.
He said 55. 4 billion drams are earmarked fro education, which is
a 21.7 percent increase against 2004 funding. In 2005 secondary
school teachers average salary will be around $100. Also 45.4 billion
drams are earmarked for social security sector, a 26.5 percent
increase against 2004. The budget envisages bigger old-age pensions
(around $20) and other social allowances. The health care system is
set to receive 33.3 billion drams, a 31.9 percent increase against
2004.
Margarian said the 2005 draft budget does not include the money
Armenia hopes to get from the Millennium Challenges Account (MCA)
Corporation and also possible funds from the US-based Lincy
Foundation.
He said a team of MCA is in Armenia now working with respective
ministries. Another team is due in a couple of weeks to examine the
projects Armenia is going to submit to MCA. Margarian said by the end
of the year the government may learn how much the US government may
release to Armenia within the frameworks of MCA.
Regarding possible funds from the Lincy Margarian said
negotiations are being held with its managers. “If the Foundation
decides to release new funds to Armenia before the end of the year
they will be included in 2005 budget,’ he said. The 2005 budget
includes a $20 million loan from the World Bank.