STATE MACHINERY MAINTENANCE FINANCING ENVISAGED BY 2005 STATE BUDGET EXECUTED BY ALMOST 100%

Noyan Tapan
Jun 06 2006

YEREVAN, JUNE 6, NOYAN TAPAN. The preliminary discussion of the
report on implementation of the law on the 2005 state budget was
continued at the joint sitting of the RA National Assembly standing
committees on June 6. The main speaker – RA Deputy Minister of Finance
and Economy Atom Janjughazian presented issues of financing of state,
local self-government and judicial bodies.

According to him, the sums envisaged by the state machinery maintenance
program were fully financed, and a lower than 100% index in some cases
was due to saving. In addition to budget allocations, extra sums
were allocated to local self-government bodies under governmental
decisions to solve urgent problems. He said that as in the previous
years, no debts of equalization subsidies were accumulated and the
financing was done by 100%. According to a written report submitted
by the government to the National Assembly, the expenditures on the
legislative body and state governance expenditures made about 7.8 bln
drams in 2005, which is 99.4% of the programmed expenditures. These
expenditures grew by 10.3% compared with 2004, which was mainly
conditioned by an increase in salary, representative and capital
expenditures. The state financial governance expenditures amounted
to 12 bln drams in the year under review. The deviation was mainly
due to underimplementation of two World Bank-financed grant programs
and to the saving of expenditures on resettlement servicing of the RA
treasury system. The growth in these expenditures compared with 2004
made 17.4% or 1.8 bln drams and was mainly conditioned by an increase
in salary and capital expenditures. 5.1 bln drams was allocated from
the 2005 state budget for maintenance of the judicial system, as a
result of which the program was implemented by 97.5%. The deviation was
mainly due to underimplementation of the WB-assisted program on court
and legal reforms.1.8 bln drams was spent by this program, 1.7 bln
drams of which were credit resources – against the programed indices
of 2 bln and 1.9 bln drams respectively. In the year under review,
transfers to local self-government bodies were fully financed in the
amount of 14.9 bln drams, which exceeded the 2004 index by 39.1%. The
subsidies to local self-government bodies with the aim of financial
equalization amounted to 13.8 bln drams. Funds were allocated to
Yerevan Mayor’s Office in order to finance expenditures on demolition
of real estate considered as unauthorized buildings at the expense
of revenues from the legalization and sale of these buildings. These
indices made 1.06 bln drams and 63 mln drams respectively.