ARMENIAN PM SATISFIED WITH BUDGET FULFILLMENT IN 2005

Arka News Agency, Armenia
June 5 2006

YEREVAN, June 5. /ARKA/. Armenian Premier Andranik Margaryan is
satisfied with the budget fulfillment in 2005.

According to him, the budget was not 100% fulfilled under a number
of budget expenditure programs.

“However, it does not mean that these programs were not implemented.

The expenditures, made by means of the agency for government purchases
just allowed expendable funds to be decreased,” Margaryan said.

He pointed out that besides this, some programs, which were implemented
mainly in the healthcare sector due to credit funds, were not completed
in 2005. “The implementation of these programs was postponed and
completed in 2006,” Margaryan said.

“Terms for receiving some financial sources do not depend on the
government. Protraction of these tranches for objective and subjective
reasons results in incomplete implementation of these programs,”
the premier pointed out and added that such programs are not numerous.

Actual incomes of the stage budget totaled AMD 374.7bln against planned
AMD 375.2bln. At the same time, AMD 363.1bln were own incomes, and
AMD 11.6bln are official transfers received from foreign sources. Tax
incomes totaled AMD 304.3bln.

Compared to the indicators of 2004, the state budget incomes increased
by 24% or AMD 72.5bln. State budget expenditures in 2005 totaled AMD
417.5bln that is 25% higher than the indicator of the corresponding
period of the previous year.

Economic growth totaled 14% in Armenia in 2005. It exceeded the
programmatic indicator by 6%, and the indicator of 2004 – by 3.5%.

Armenia’s GDP in 2005 totaled AMD 2.244bln, and the GDP deflator
index totaled 103.2.

The level of Armenia’s GDP exceeded the indicator of 1989 by 14.1% in
2005. GDP per capita totaled $1524 in the period under report. ($1 –
AMD 426.37)