ARMENIAN GOVERNMENT APPROVES ANNUAL REPORT ON 2005 STATE BUDGET EXECUTION

Noyan Tapan
Apr 27 2006

YEREVAN, APRIL 27, NOYAN TAPAN. At the April 27 sitting, the Armenian
government approved the draft law on approval of the annual report
of the 2005 RA state budget execution, which will be submitted to the
National Assembly in prescribed order. RA Deputy Minister of Finance
and Economy, Chief Treasurer Atom Janjughazian told reporters following
the sitting that under the RA legislation, each year the government
shall submit the annual report on execution of the previous year’s
state budget to the National Assembly until May 1. According to
the 2005 report, GDP made 2 trillion 143.9 billion drams. The real
economic growth made 14% in 2005 on 2004. A 0.2% fall in prices was
registered in late 2005, while the average inflation made 0.6%. In
the year under review, the Armenian dram appreciated by 7.3% compared
with 2004. GDP per capita made 697,421 drams (about 1,550 USD),
which exceeds the previous year’s index by 17.6%. Unemployment made
8.1% or 98 thousand people, which is by 1.5 percentage points lower
than in 2004. According to A. Janjughazian, the state budget revenue
collection index made 99.9%. Revenues accounted for 16.7% of GDP,
which is by 0.9 percentage points higher than in 2004. The budget
revenues grew by 24%, while own revenues – by 25.8%. The expenditure
index was fulfilled by 97.1%, which constitutes a 25% increase on the
previous year. An especially low index was registered with respect
to target programs implemented with financial resources from foreign
sources. Last year, Armenia’s state foreign debt made 1 bln 99.2
mln USD, declining by 7.1% compared with 2004, which, according to
A. Janjughazian, was conditioned by a change in the exchange rates
of the main currencies, which make up the state foreign debt basket,
against the US dollar. The ratio of the state foreign debt to GDP made
22.4%. In 2005, Armenia’s domestic debt amounted to 51.3 bln drams
against 46.4 bln drams in 2004. Short-term state bonds account for
13% of this debt, while medium-term and long-term bonds – for the
remaining part.