YEREVAN, APRIL 4, NOYAN TAPAN. In January-February 2007, current transfers made 30.7% or 14.2 bln drams (about 39.5 mln USD) of current expenditures of the RA state budget. The quarterly program on allocation of current transfers was fulfilled by 63.5%. According to the RA Ministry of Finance and Economy, over 4.4 bln drams of transfer allocations was spent on benefits, 3 bln drams - on pensions, and 2.9 bln drams - on subsidies to communities. The total amount of transfers grew by 10.3% on the same period of 2006. Subsidies and benefits increased by 19.9% and 11.8% respectively in the first two months of 2007 on the same months of 2006. In the first two month of 2007, subsidies of over 2.1 bln drams (5.8 mln USD) were provided from the RA state budget, which made up 4.6% of current expenditures: the quarterly program on subsidizing was fulfilled by 40.3%. The amount of susidies from the state budget exceeded by 29.6% or 489.3 mln drams the index of January-February 2006. 23.8 bln drams was allocated from the state budget for purchase of goods and services, which made up 51.6% of current budgetary expenditures: the quarterly program was fulfilled by 48.4%. Expenditures on purchase of goods and services grew by 7.9% or 1.8 bln drams compared with January-February of last year, which is mainly conditioned by an increase in expenditures on comprehensive education, as well as primary and hospital medical aid. More than 5.3 bln drams was allocated from the RA state budget for financing of capital expenditures in January-February 2007. Capital expenditures of the state budget grew by 45.9% or about 1.7 bln drams on the same period of last year, which was mainly due to an increase in capital expenditures in the spheres of defence, education, health care and water industry, as well as by allocations from the RA government's reserve fund. In January-February 2007, crediting from the RA state budget amounted to 2.9 ln drams, with this sum being provided to the Nagorno Karabakh Republic (NKR). 45.4 mln drams of previously provided credits was re-paid to the RA state budget. As a result, net creiting made 2.8 bln drams. Net crediting of the state budget grew by 20.7% on the same period of 2006 - at the expense of the increased amount of the credit to the NKR in 2007 on last year.

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