YEREVAN, SEPTEMBER 28, NOYAN TAPAN. At the September 28 sitting, the Armenian government approved the 2007 draft state budget to be submitted to the National Assembly for discussion. Deputy Minister of Finance and Economy Pavel Safarian said at a briefing following the sitting that it is envisaged that in 2007, the state budget revenues will make 485.5 bln drams (about 1 bln 26 mln USD at the current exchange rate) and state budget expenditures will amount to 557 bln drams. Thus, it is envisaged to increase budget revenues by 17.7% and expenditures by 15.5% compared with last year. According to Pavel Safarian, a 9% GDP growth and a 4% inflation are forecast for 2007. The ratio of budget revenues to GDP will make about 17%. Budget expenditures will increase by 75 bln drams on 2006. Out of this sum, 35 bln drams will be allocated to the defence sector, 10 bln drams - to education, 8 bln drams - to health care, 8 bln drams - to the social sector, 1.5 bln drams - to culture, 1.8 bln drams - to economy, and 3.3 bln drams - to community budgets as subsidy. In 2007, the minimal salary of Armenian employees will increase by 5 thousand drams and make 20 thousand drams. The average pension will grow from 11,869 to 13,583 drams. The average family benefit will grow from current 15,300 drams to 17,600 drams in 2007. The number of beneficiaries will decline by 7 thousand to 125 thousand. The base salaries of civil servants will increase from the current amount of 30 thousand drams to 39 thousand drams, while their average salary - from current 87 thousand drams to 104 thousand drams. The average salary of judges will grow by 34 thousand drams to 371 thousand drams, that of prosecutors - by 3 thousand drams to 119 thousand drams. The salary of school teachers will increase from current 58,300 drams to 74 thousand drams next year. The salaries of administrative staff of schools will make 76 thousand drams instead of current 60 thousand drams. Allocations to science will increase by 400 mln drams in 2007. The average monthly salary of cultural workers will grow from current 28.5 thousand drams to 34,600 drams in 2007. The draft state budget indices were calculated at the dollar's settlement rate of 357 drams.

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