Arka News Agency, Armenia
Jan 30 2007

ARMENIA’S ON-BUDGET EXPENDITURES AMD 444BLN IN 2006

YEREVAN, January 30. /ARKA/. In 2006, Armenia’s on-budget
expenditures increased by 14.6% and totaled AMD 444bln. The Press and
Public Relations Department, RA Government, reports that this
information is contained in the 2006 report submitted by RA Minister
of Finance and Economy Vardan Khachatryan.
According to the document, the on-budget expenditures were mainly
directed to resolving social problems under the strategic program of
poverty reduction.
Specifically, the expenditures on family allowances increased by 25%,
and those on pensions by 22%. A 30% increase in expenditures on
education was recorded, which resulted in a 15.4% rise in teachers’
salaries.
A 27% increase in expenses on public heath made primary medical care
free, and the salaries of medical workers were raised.
According to the report, 30% poverty reduction in urban areas, and
28.3% poverty reduction in rural areas were recorded.
Another important result of the Ministry’s activities is the
preparation of the fourth credit program of poverty reduction and the
signing of a compact with the Millennium Challenges Corporation.
Under the compact, Armenia is to receive a total of $236mln for
restoration of rural infrastructures.
A program of state mid-term expenses for 2007-2009, as well as a
strategy of introducing an e-purchase system, was elaborated in 2006.

According to the report, financial inspection conducted in Armenia
revealed AMD 9,155.6mln worth financial violations. A total of AMD
6,482mln are to be restored and restructured. P.T. -0–