Yerevan, May 18, Noyan Tapan. Over the first quarter of this year Armenia's state budget spending reached 153.4 billion drams (USD 411.8 million), which is 10.4 per cent more than within the same period of last year. 2.2 billion drams were spent at the cost of off-budget funds of state enterprises, in particular, operational expenditure reached 147.7 billion drams, while transactions with non-financial assets amounted 5.7 billion drams. Against the same period of 2008 budget spending increased by 14.4 billion drams. That increase is mainly conditioned by the grown amount of pensions and allowances, salaries of government-financed organizations and procurement of services. According to RA finance ministry data, operational expenditure of the state budget over January -March this year reached 147.7 billion drams. 19.9 billion drams of operational expenses were directed to salaries of state organizations employees, including 964 million drams to social security. These figures increased by 20.9 and 7.4 per cent respectively compared to the same period of last year. The state budget allocated 27.8 billion drams for procurement of services and commodities, which surpassed the last year's showing by 12.1 per cent. Over the first quarter of this year 3.5 billion drams were allocated for state debt services, in particular 2.8 billion drams were directed to internal public debt and 700.5 million drams for external debt payment. Against the same period of last year state debt services grew by 20.5 per cent or 602.7 million drams, which is conditioned by the increase of internal public debt. State subsidies reduced by 7 per cent to 3.7 billion drams. 11.6 per cent or 17.1 billion drams of operational expenses of the budget accounted for grants.

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