2006 Budget To Reach $1 Billion
RFE/RL reports that the Armenian Government has approved its draft budget for 2006 that anticipates a 20 percent increase in public spending that would see it reach or exceed $1 billion for the first time since independence was declared in 1991.
The Armenian military would remain the single largest recipient of the still modest public funds. The government wants to increase its budget by 21 percent to 74.3 billion drams ($166 million). The continuing large share of military spending in the national budget reflects Armenia’s unresolved conflict with Azerbaijan over Nagorno-Karabakh.
Armenia’s defense budget increasingly pales in comparison with that of Azerbaijan which is using growing proceeds from oil exports for a military build-up. Azerbaijani President Ilham Aliev pledged recently to double his country’s defense spending to $600 million next year.
However, spending on education and social services would remain lower than military expenditures although salaries for teachers should be increased but will still remain low. Nevertheless, it’s got to be good that such trends are evident.
The proposed 2005 budget sets side a total of 69 billon drams for Armenia’s education sector and 54 billion drams for social programs. According to Deputy Finance Minister Pavel Safarian, the overall increase in social spending would lead to a sizable rise in public sector salaries and poverty benefits. He said the average monthly salary of school teachers would rise by 16 percent to 58,300 drams ($130).
The full news item can be read online here.
