On November 6 the debates “On 2007 State Budget of the Republic of Armenia” continued at the National Assembly. At the joint session of the NA Committee on Defense, National Security and Internal Affairs, NA Committee on Financial-Credit, Budgetary and Economic Affairs, issues envisioned in the law on the 2007 RA State Budget - financing the police, the national security service, the maintenance detention camps, the Armenian Rescue Service of the Ministry of Territorial Administration and the issue of allocating an inter-state budgetary loan - were discussed.

The Deputy Minister of The Ministry of Finance and Economy Mr. Pavel Safaryan, presenting the envisioned financing of the above mentioned spheres noted, that the state budget of 2007 envisions to allocate 38,834.6 million drams to the system of keeping the public order, 19 billion drams - to the police, 3.3 billion drams to the rescue service, 5.6 billion drams - to the criminal-executive system and 11.3 billion drams - to the national security system.

Deputy Head of the Police of the Republic of Armenia Mr. Armen Yeritsyan, introducing the resources allocated to the sphere noted, that the state budget of 2007 envisions allocating around 19 billion drams to the Police of the Republic of Armenia. The expenses of maintenance of the police will be 18,220.7 million drams, 16,518.2 million drams from which will be allocated to the current expenses and 1,702.5 million drams - to the capital expenses. 348 million drams will be allocated to the education system, 81.9 million drams - to the health care system and 600 million drams – to the capital construction.

Presenting the resources allocated to the National Security Service, Deputy Head of the National Security Service of the Republic of Armenia Mr. Grigor Harutyunyan noted that 11,375.1 million drams from the state budget of 2007 are anticipated for ensuring the national security.

Presenting the expenses of the criminal-executive system Deputy Minister of Justice Mr. Ashot Abovyan noted, that the state budget of 2007 envisions 5,617.1 million drams for the sphere. The current expenses will be 3,024.6 million drams and the capital expenses – 2,592.5 million drams.

Head of the Armenian Rescue Service Mr. Edik Barseghyan noted, that the maintenance of the Armenian rescue system will be allocated 3,321.0 million drams from the state budget of 2007, from which 2,883.7 million drams will be directed to the current expenses and 437.3 million drams to the capital expenses.

At the joint session of NA Committees on Social Affairs, Health Care and Environment and on Financial-Credit, Budgetary and Economic Affairs the Deputy Minister of Finance and Economy Mr. Pavel Safaryan introduced the policy of the 2007 state budget concerning the social security, allowances, remuneration of the employees of the budget sphere, refugees and issues related to migration, budgetary financing of health care and environment protection and the relations between the state budget and the State Fund of Social Insurance of Armenia.

According to Mr. Pavel Safaryan in 2007 the expenses of social security and social insurance will be 62654.1 million drams, which will exceed the same expenses of 2006 by 7945.1 million drams approved by the state budget. The 2007 state budget will allocate 17,977.3 million drams to the pensions, 10,831.8 million drams - to the “Provision of Pensions of Servicemen of Officer Corps and Their Families” program, 2,346.4 million drams - to the “Provision of Pensions of the Private Servicemen and Their Families” and 3,244.2 million drams - to the “Social Pensions” program. The Deputy Minister informed, that in the state budget of 2007 there is no obligatory medical insurance program.

As the Minister of Healthcare Mr. Norayr Davidyan informed the sphere of health care will be allocated 46639.6 million drams from the 2007 state budget. It was noted, that according to the 2007-2009 Program of Medium-Term State Expenses of the Republic of Armenia, in 2008 the expenses of healthcare sphere anticipated to be 46456.6 million drams, and in 2009 – 52622.9 million drams. 16848.9 million drams will be assigned to medical care at hospitals. In medical institutions the medical care at hospitals the average daily cost of treatment per person is anticipated to be 10200 drams. The accounting salary of employees of medical staff is anticipated to reach 42.6 thousand drams and the accounting average monthly salary of employees of middle medical staff – 33.3 thousand drams. In 2007 the expenses of first-aid medical care will be 16766.3 million drams.

According to the Minister of Environmental Protection Mr. Vardan Ayvazyan the state budget of 2007 will allocate 1422.4 million drams to the sphere, 1110.7 million drams of which will be assigned to current expenses, and 311.7 million drams to the capital expenses. 10.0 million drams are envisioned for the replenishment of fish reserves. The geological-physical activities will be allocated 39 million drams within the framework of which regional geological, geo-chemical, geo-physical, hydro-geological activities will be carried out. 41.7 million drams are envisioned for cleaning about 125 hectares of forests covered with the water of the lake Sevan. 369.8 million drams are envisioned for the “Hydrometeorology and Monitoring State Service of Armenia” state non-commercial organization.

The Minister of Labor and Social Affairs Mr. Aghvan Vardanyan introduced the expense programs draft that will be financed by the 2007 state budget, and through the Ministry of Labor and Social Affairs. According to Mr. Vardanyan, the share of state allowances in the state budget of 2007 will be 28,064,9 million drams or 1,030.5 million drams or that of 2006. The expenses of “Family Allowance and One-off Financial Aid” program will be 26,429.8 million drams. In 2007 the threshold giving the right to allowance will be maintained, the base of family allowance will be increased by 500 drams for families without juvenile members and that of the families with juvenile members will stay unchanged. The additions assigned to juvenile members of families will be increased by 500 drams. The 2007 state budget envisions 5841.6 million drams for the social security arrangements.

Deputy Head of the Pension Fund Mr. Ara Harutyunyan introduced the budgetary indicators of the State Fund of Social Insurance. He noted, that in 2007 the inflows from obligatory social insurance payments are envisaged to reach 85 billion drams. This indicator has been built taking into consideration the tendencies of payment collection of the current year, as well as the long-term tax-budgetary principles of Poverty Reduction Strategy Paper (PRSP) and the Program of Medium-Term Expenses of the Republic of Armenia. From the official transfers of the state budget it is envisioned to receive 21.3 billion drams, which will be spent on the provision of pensions of officer soldiers, privates and their families, social pensions, indemnities for occupational injuries, occupational illnesses and other damages to health, on pensions, monthly financial aids assigned by the laws of the Republic of Armenia and decrees of the Government of Armenia. Mr. Harutyunyan informed, that as a base for calculating the 2007 expenses of obligatory social insurance of the Republic of Armenia have served the main pension (4250 drams), the value of one year of service, which is 230 drams instead of 180, the total number of insurance and social pensioners, as well as the base indicator of employment and of different social insurance programs. It was noted, that the expenses of pension insurance will be 78 billion drams. In 2007 it is envisioned to pay pensions to 552449 pensioners, from which insurance pensioners are 471864, social pensioners are 471864 and the privates are 15058.