YEREVAN, DECEMBER 5, NOYAN TAPAN. In January-October 2006, the RA state budget (without the inflow of target credit programs' resources financed from external sources) was executed with a deficit of over 8.8 bln drams (about 20.7 mln USD), which was financed from internal sources in the amount of 6.7 bln drams, and from external sources - in the amount of about 2.1 bln drams. According to the RA Ministry of Finance and Economy, the state budget was financed in the amount of 4.2 bln drams at the expense of tresury bonds (issue of 25.9 bln drams, and redemption of 21.8 bln drams). 19.3 bln drams was transferred at the expense of funds received from privatization of state enterprises and incomplete construction objects. From the internal sources of deficit financing, 97.4 mln drams was allocated for payment of promissory notes and 2.4 mln drams - for buyback of state internal premium bonds. Free budgetary resources increased by more than 16.6 bln drams. In January-October 2006, the World Bank's Poverty Reduction Assistance Credit Program's 20 mln-dollar tranche (postponed since 2005) was received. About 7.1 bln drams was allocated for redemption of foreign liabilities. Particularly, over 3.3 bln drams was allocated for redemption of liabilities to the EBRD, 3 bln drams - for redemption of liabilities to the World Bank and 749.8 mln drams - to redeem liabilities to the US government.

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