MEDIUM-TERM EXPENDITURE PROGRAMME ADOPTED

Azat Artsakh Nagorno Karabakh Republic [NKR]
15 Sept 05

In accordance with the law on the NKR Budget System the government
adopted the medium-term expenditure programme for 2006-2008 by the
August 29 decision No. 374. The programme was extended to the National
Assembly. The macroeconomic side of the programme foresees an 11.2 per
cent increase of the GDP in 2006-2007 and an 11.5 per cent increase of
the GDP in 2008. By the medium-term programme the state budget
receipts in correlation with the GDP are estimated to total 16.3 per
cent in 2006, 17.2 per cent and 17.8 per cent in 2007 and 2008
respectively. Return on tax in correlation with the GDP is estimated
13.4 per cent in 2006, 14.5 per cent in 2007 and 15.2 per cent in
2008. In 2006-2008 the return on tax is estimated to mount to 9.3
billion, 11.2 billion and 13.3 billion drams respectively. For the
upcoming three years annual increase of salaries and the retirement
benefit is foreseen by the medium-term expenditure programme. In
2006-2008 the average salary of teachers will increase from 50.5
thousand drams to 58.8 thousand, 64.2 thousand and 70.1 thousand drams
respectively. The salary of administrative workers will increase
too. The average salary of doctors will be 48.7 thousand, 54 thousand
and 60 thousand drams respectively and the salary of other health
workers will be 31.8 thousand, 35 thousand and 38.8 thousand drams
instead of the present 25.8 thousand drams. The basic pension will
increase up to 4250 drams in 2006, 4500 drams in 2007 and 5000 drams
in 2008. The value of one year of service will be 180 drams in 2006,
210 in 2007 and 250 in 2008. In the years 2006, 2007 and 2008 the
average retirement benefit will increase from 10.9 thousand to 12.4
thousand, 13.7 thousand and 15.5 thousand drams respectively. The
programme also provides for an increase of the allowances of certain
categories of children. It is planned to increase the basic salary of
civil servants as well. In 2006-2008 their salary will increase from
20 thousand to 30 thousand, 35.5 thousand and 42 thousand drams
respectively. In the upcoming years the government will focus on the
social problems of refugees and the programme of raising birthrate. In
2006-2008 considerable sums will be directed at the construction and
improvemenst of irrigation systems in the country.

AA.
15-09-2005