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State Machinery Maintenance Financing Envisaged By 2005 State Budget

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  • State Machinery Maintenance Financing Envisaged By 2005 State Budget

    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.
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