BY 2009 DRAFT STATE BUDGET, RATIO OF STATE MACHINE MAINTENANCE COSTS TO GDP NOT TO CHANGE AS COMPARED WITH 2008 AND MAKE 5.5%

Noyan Tapan
Oct 27, 2008

YEREVAN, OCTOBER 27, NOYAN TAPAN. According to the draft law on
the 2009 state budget, it is envisaged allocating 52 bln 194.7 mln
drams (about 1 bln 695 mln USD) for the maintenance of the state
machine, which exceeds the 2008 index by 17.7% and the 2007 index
by 22.1%. Although the indicated allocations will grow, the state
machine maintenance costs/GDP ratio will not change, remaining at
the level of 5.5%.

The RA deputy minister of finance Pavel Safarian said at the October 27
discussion of the 2009 draft state budget at the RA National Assembly
that as a result of the changes in the structure of the government
and departments in 2008, the number of the employees of the state
machine will make 17,130 instead of 16,208 in 2008 due to the fact
that this year the Social Security Fund with its 642 employees became
a state government body, makng part of the RA Ministry of Labor and
Social Issues. The staff of the RA Control Chamber (set up in late
2007) was increased by 56, and the salaries of the 131 employees of
the Control Chamber were not included in the 2008 budget: they were
financed from the RA government’s reserve fund.

Besides, the RA National Security Council with its 93 employees and the
RA Ministry of Diaspora with its 107 employees were created in 2008.

P. Safarian said that by the draft law, the salary calculation base
will not change and make 40 thousand drams for civil servants, 55.5
thousand drams for tax and customs officails, and 42 thousand drams
for employees of the compulsory execution service. The base salaries
of high-ranking state officials will also remain at the same level.

It was explained that there will be a 6.2% growth of the average salary
of civil servants in connection with an increase in additional payments
conditioned by their promotion and increased length of service. In
2009, the expenditures on salaies will make up 33 bln 519 mln drams
out of the total amount of expenditures on maintenance of the state
government system.

In the words of the deputy minister of finance, the ration of
civil servants on a business trip in the territory of Armenia will
increase from 720 to 2,000 drams, the payments for a night stay will
make 5-15,000 drams (25,000 drams in Yerevan) instead of the current
5-10,000 drams due to the growth in prices of hotel services. In 2009,
1.35 million drams will be allocated for gasoline filling of office
cars (with the daily norm of 10 liters a car) instead of 1.2 million
drams in 2008. The heating expenses of the departments will change
because starting from January 1, 2009, the price of one cubic meter
of Russian gas imported into Armenia will make 84 drams instead of
59 drams in 2008.