YEREVAN, NOVEMBER 4, NOYAN TAPAN. By the 2007 draft state budget, the total amount of financial equalization subsidies to be provided to Armenia's communities will make 17.98 bln drams, which exceeds by 22.6% or 3.3 bln drams (about 8.68 mln USD) the 2006 index. This amount was calculated based on the requirement of the RA Law on Local Self-Government, according to which it shall make no less than 4% than the sum of actual revenues of the RA consolidated budget in the second budgetary year preceding the given budgetary year. In this case, 4% of the total sum of revenues of the 2005 consolidated budget (449.5 bln drams) was taken as the basis. RA Deputy Minister of Finance and Economy Pavel Safarian said this when presenting the issue of the 2007 draft state budget-envisaged financing of local self-government bodies at the November 3 joint sitting of the RA National Assembly standing committees. 460 mln drams out of the indicated sum is envisaged for financing the compensation to be given to community budgets due to privileges. However, according to the deputy minister, the calculation of compensation sums is still continuing, and it is not ruled out that they will undergo some changes in the final version of the draft to be submitted to the NA. First Deputy Mayor of Yerevan Kamo Areyan said that in 2007 the total amount of state subsidies for 12 district communities of Yerevan is envisaged to make 5.6 bln drams against 4.941 bln drams in 2006. The 2007 expenditures on maintenance of the mayor's office governance staff also increased by 104 mln drams on 2006, making 584.187 mln drams. This increase is mainly conditioned by a growth in the salaries of civil servants.

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