RA NATIONAL ASSEMBLY PASSES IN FIRST READING BILL ON AMENDMENTS AND
ADDITIONS TO LAW ON 2007 STATE BUDGET

YEREVAN, JUNE 29, NOYAN TAPAN. At the June 29 special session, the RA
National Assermbly passed in first reading the bill on making
amendments and additions to the RA Law on the 2007 State Budget.
According to the bill, the total sums of revenues and expenditures
determined by the current law will be increased by 25 billion drams.

The government explains the necessity for the indicated amendment by
the revision of some main macroeconomic indices on economic growth in
2007. By new forecasts, in 2007, real GDP growth will make about 11% or
by 2% more than the forecast index, while its nominal value will make
3,076.5 bln drams or by 58.1 bln drams more than the forecast index.

By the government’s estimates, in 2007 the total programmed amount of
tax revenues and state duties of the state budget will make 467.7 bln
drams or by 8.9 bln drams more than the forecast index. Besides, the
government expects some extra budgetary revenues in the amount of about
15.8 bln drams from alienation of lands representing state property in
Yerevan – against 4 bln drams envisaged by the 2007 state budget.

As a result, the total programmed amount of the 2007 state budgetary
revenues will increase by 5.1% and make 515.2 bln drams or 16.7% of
GDP. The total programed amount of expenditures will make 583.7 bln
drams or 19% of GDP. The extra budgetary revenues will be distributed
as follows: current expenditures will increase by 19.1 bln drams,
capital expenditures – by 5.2 bln drams, net crediting will grow by 0.7
bln drams.