At the joint sitting of the NA Standing Committees on Social Affairs, Health Care and Environment and on Financial- Credit, Budgetary and Economic Affairs, Pavel Safaryan, Deputy Minister of Finance and Economy, presented the ideology of 2006 draft budget on social security, allowances, payment of the budgetary sphere staff, problems related to the refugees’ migration, budgetary financing of the spheres of health care and environment, budget and relations of RA social insurance and state fund. According to Mr. Safaryan, several key problems were set forth in the basis of planning the expenditure preservation of the ministries: the salaries of the civil servants are increased, the basic salary is 20-30 thousands of drams.

In 2006, in the direction of the spheres of social insurance and social security, the expenses of the state budget are calculated in the amount of 54.139.7mln AMD or RA 2005 expenses approved by the state budget will exceed by 8.257.4mln AMD, which is mainly conditioned by the growth of the pension coverage expenses in the amount of 1.402.5mln AMD, by the increase of the state allowance of the population in an amount of 4766.6mln AMD, by other part of the events of social security and other social programs, by the adoption of new program and by the increase of the expenses, in the direction of acting programs, in an amount of 2.088.3mln AMD.

The expenses of the sphere “Social Security and Social Insurance” in 2007 will be 55.467.6mln AMD, and 56.642.4mln AMD in 2008 in the prospect of medium-term.

The allocations envisaged by RA 2006 state draft budget will be 16.879.0mln AMD, or  402.5mln AMD more than in 2005, by the pension coverage subdivision, an expenditure in an amount of 9.875.4mln AMD is envisaged in the program of “Pension Coverage of the Servicemen of the Officer Staff and Their Family Members,” an expenditure in an amount of 2.462.2mln AMD is envisaged by the program “Pension Coverage of the Privates and Their Family Members,” an expenditure in an amount of 3.261.5mln AMD is envisaged by the program “Social Pensions.”

Aghvan Vardanyan, Minister of Labor and Social Affairs, presented the expenditure program of 2006 state draft budget execution and the program being financed through the Ministry of Labor and Social Affairs. According to Mr. Vardanyan, if nearly 46bn AMD was envisaged in 2005 by state budget, so in 2006 it is 54.1bn AMD.

The RA 2006 state draft budget envisaged allocations by state allowances to the people subdivision will be 27.034.4mln AMD or 4766.6mln AMD more than in 2005.

The expenses will be 24.357.8mln AMD against 20.024.8mln AMD of 2005, by the program of “Poverty Family Allowance and Lump Sum Assistance” The growth is 4.333.0mln AMD towards the RA state budget of 2005, which is conditioned by the increase of the benefits of an amount of 3325.0 AMD monthly of the needy families. It is envisaged to pay allowances to 132.4 thousands of families, to increase the basic amount of the allowance by 1000 AMD.

In 2006 it is envisaged to reduce the threshold of giving allowance right by a unit, as well as to amend the order of the estimation of needy families, to increase the share of giving right of the allowance to the pensioners.

The envisaged allocations by the RA 2006 state draft budget will be 4.719.6mln AMD or more within 926.9mln AMD than in 2005, for the events for social security.

As Norayr Davidyan, Minister of Healthcare, informed, in the health sphere the expenses of health by the RA 2006 state draft budget are 38438.6mln AMD or 21.4%.

In the direction of the program of RA 2006-2008 state average state expenses, the expenses directed to health will be 48398.9mln AMD in 2007 and 56434.2mln AMD in 2008.

14459.1mln AMD is envisaged against the 13344.0mln AMD of 2005 or the growth is 8.4% in the direction of outpatient treatment.

Mr. Davidyan noted that it is envisaged to have the accounting average monthly salary of the medical staff of to 38.7 thousands AMD (against the 37.5 thousands of AMD of 2005), and to have the accounting monthly average salary to 30.3 thousands of AMD of the medical staff.

2375.3mln AMD for 30180-outpatient treatment is envisaged against the previous year of 2298.0mln AMD for 30204 cases within the frameworks of the program on “State Order in the Direction of Medical Aid for Socially Needy Population and Those Involved in Special Groups.” As it was in 2005, in 2006 it is also envisaged to include in the subdivision of outpatient treatment the financing of emergency ambulance service. 1132.5mln AMD for 336615calls is envisaged against the 1088.9mln AMD for 333310calls of 2005, by the program of “State Order in the Direction of Ambulance Service.”

In 2006, 1434.6mln AMD is envisaged in the direction of primary (ambulatory-policlinics) medical aid against 11507.8mln AMD of 2005, or the growth is 24.7%. 1000.0mln AMD is envisaged in the direction of the program “On State Order of State Program on Combating Cigarette.”

According to Vardan Ayvazyan, Minister of Environmental Protection, 1367.0mln AMD is envisaged to allocate to the environmental sphere by the program of RA 2006 state draft budget, 1038.4mln AMD of which will be directed to current expenses and 328.6mln AMD to capital expenses.

10.0m AMD is envisaged for adding the reserves of fish, which corresponds with the amount envisaged for 2006 by the RA 2006-2008 state medium-term expenditure. The program will carry out reproduction of rare and disappearing kinds of fishes and their returning to lake Sevan.

19mln AMD was directed to geo-research activities, on the account of which the activities of regional geological, geological, geo-chemical, geo-physical, hydro-geological works will be carried out.

367,5mln AMD is envisaged for maintenance of activity of especially protected territories of nature.

285.0mln AMD is envisaged for the state non-commercial organization “On hydrometeorology and monitoring public service of Armenia.”

Vazgen Khachikyan, Chairman of Social Insurance State Fund presented the 2006 budget of State fund of social insurance, which was increased in 10.9%, comparing with the last year, and is nearly 94bn 590mln 952 thousands of AMD.

Comparing with the last year, the transfers from the state budget are increased in 1bn 169mln 431 thousands of AMD and is 21bn 86mln 238 thousands of AMD.

In 2006 the average increased pension will be 11.508 AMD providing nearly 12% growth.

Gagik Aslanyan, Deputy Minister of RA Territorial Administration, presented the envisaged expenses for the solution of refugees’ social problems. The growth of 2006 against the previous year is increased in 19mln 700 thousands of AMD forming 49mln 600 thousands of AMD.

At the joint sitting of the NA Standing Committees on Science, Education, Culture and Youth and on Financial-Credit, Budgetary and Economic Affairs was also debated the RA draft law “On RA 2006 State Budget.” Pavel Safaryan, Deputy Minister of Finance and Economy, took floor on the issues of budgetary financing of the spheres of science, education, culture, information and sports envisaged by the draft law. The speaker informed that the expenses of the educational sphere envisaged by the 2006 state draft budget, are 68.1bn AMD. The expenditures’ growth towards the relevant index is 10.7bn AMD, ratified by RA 2005 state budget. The expenses of the science field are 5.1bn AMD, including the capital expenses i.e. 446.6bn AMD. The envisaged allocations for the sphere of culture, information and sports are 12.8bn.

Sergo Yeritzyan, Minister of RA Education and Science, noted that the general sphere is of main supremacy in the education sphere, to which are directed the arrangements directed to the system management and the increase of productivity, amendment of general comprehension and qualification amendment. 53.265bn AMD is envisaged for elementary, main and general main education by the 2006 draft budget, which has increased in 18.2 % towards the similar indicator of 2005. 1bn AMD is envisaged for the primary specialized education, which increased in 51.5% comparing with the previous year, 5.295bn AMD is envisaged for higher and post-graduate specialized education, which is increased in 20.2 % compared with the previous year. The teacher’s salary for a personnel will rise to 58.3 thousands of AMD.

Expenses in the field of science in comparison with the last year's index will increase by almost 1bn AMD, forming 5,1bn AMD.

Gagik Gyurjyan, Deputy Minister of Culture and Youth Affairs, presented in brief the financial investments to the sphere. Expenses on culture will be 8.4bn AMD.

Mikayel Ispiryan, Deputy Chairman of the State Committee on Physical Training and Sports, informed that the assignments for sports sphere are 1.175bn AMD, which has increased comparing with the last year in 86.1bn AMD.

Grigor Amalyan, Chairman of the RA National TV and Radio, noted that instead of last year's 104mln AMD, by the budget of this year it is stipulated 95mln AMD.

Chairman of the RA National Radio and TV Council Alexan Harutyunyan informed that on radio telecasts per 2006 it is envisaged to allocate 3181,5mln AMD, that is more in comparison with the last year of 72,8mln AMD.

The debates in the committees on the draft bill “On RA 2006 State Budget” will proceed on October 18.