BUDGETARY EXPENDITURES ON GOODS AND SERVICE PURCHASE INCREASE BY 13.6% IN JANUARY-OCTOBER 2006 ON SAME PERIOD OF LAST YEAR

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. In January-October 2006, 148.9 bln
drams (over 350 mln USD) was allocated from the RA state budget for
the purchase of goods and services, which made up 54.3% of the state
budget’s current expenditures. The annual program was fulfilled by
76.6%. According to the data of the RA Ministry of Finance and Economy,
expenditures on purchase of goods and services increased by 13.6% on
the same period of 2005, which was mainly conditioned by an increase
in allocations for defence, education and health care.

In the first ten months of this year, capital expenditures made more
than 67.1 bln drams, which ensured the annual program’s execution by
74.4%. The state budget’s capital expenditures grew by 32.9% or 16.6
bln drams compared with January-October 2005, mainly conditioned by
an increase in allocations for road services, housing and communal
services and education. In the period under review, the crediting from
the state budget amounted to 13.9 bln drams, with most of the money –
about 13.7 bln drams being provided to the NKR. Loans of a total of
120.4 mln drams were given to repressed citizens for the purpose of
house construction. Out of the credits provided earlier, 810.2 mln
drams was repaid to the state budget, about 174.4 mln drams of which
was repaid by Georgia. As a result, the net crediting made 13.1 bln
drams, which ensured the execution of the annual program by 80.5%. The
net crediting from the state budget grew by 16.3% or over 1.8 bln
drams on the same period of last year, mainly due to an increase in the
interstate credit provided to the NKR from the 2006 state budget. In
January-October 2006, 7.2 bln drams was allocated for the servicing
of state debt, with the annual program being executed by 70%.

4.2 bln drams of this sum was allocated for servicing the domestic
debt, and 3 bln drams – for servicing the foreign debt. Expenditures on
state debt servicing decreased by 13% on the same months of 2005. This
year money was saved in connection with the decreased expenditures on
both domestic and foreign debts servicing as a result of less issue
of 6-month state bonds and the Armenian dram’a appreciation.