Crisis pushes government to cut upkeep of state machinery by 7%

03.11.2009 21:04
Crisis pushes government to cut upkeep of state machinery by 7%

YEREVAN, November 3, /ARKA/. The Armenian government plans to cut upkeep of state machinery (all level government officials) next year by 7% to 50.2 billion Drams. A deputy finance minister Pavel Safarian said the decision to cut the maintenance expenses is prompted by the global economic and financial crisis.

Speaking at A Monday parliament hearing on next year’s budget he said these expenses will make 1.56% of the GDP, down from 1.63% in 2009. The government personnel upkeep in 2010 will make 5.84% of all budget spending. In 2008 it was 5.88%.

Pavel Safarain said 67% of the earmarked sum will be paid as salaries, which will not grow next year. According to him, in 2010 the average salary of government officials will make 40,000 Drams, that of customs officers-55,500 Drams. He also said the number of government personnel will be cut by 300 people to 16,900.

According to the 2010 draft budget, the government plans to collect 676. 6 billion Drams of revenues, down from 772 billion projected for 2009. It also plans to spend 859.6 billion drams, of which 85.7% will be current expenditures. Tax revenues for 2010 are projected at 533 billion Drams, up from 510 billion, projected for 2009. M.M. -0-

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