Wednesday, 19 September

Armenia’s 2016 Budget: While Certain Medical Assistance Drops, 100 Million AMD in Compensation for Russian Military Aircraft in Armenia

It appears that Armenia’s National Assembly will pass the 2016 draft budget bill.

Those MPS opposing the bill note that Armenia’s deficit is reaching risky proportions.

According to the draft, next year the government will spend US$180.4 million in loan resources allocated by foreign nations and international organizations. Armenia, as per its obligation will chip in $28.3 million.

While state expenditures targeting socio-economic sectors will remain more or less the same, and in some cases will drop, the government always finds the cash to improve the lifestyle and working conditions of officials.

The government, as per the norm, goes out of its way to satisfy Russia at the expense of local taxpayers.

Next year, the government will allocate 100 million drams ($208,000) to compensate for the expenses related to the servicing of airplanes belonging to Russian military units at Armenian airports. The same amount has been allocated this year.

Hetq has already noted that the Armenian government has found the money to compensate Russian Railways JSC (owned by the Russian government) for losses incurred by its subsidiary South Caucasus Railways (SCR). Armenia’s 2016 budget envisages paying Russian Railways 349.9 million AMD ($724,000) in compensation. This will be the sixth year of such compensation for losses incurred by SCR within Armenia for passenger transit.

This year, 588.4 million AMD was allocated in compensation to Russian Railways JSC.

The 2016 budget has planned for expenditures for the construction of administrative offices and buildings. 208 million AMD ($432,000) will go towards renovating buildings and structures owned by Public TV of Armenia JSC.

200 million AMD will go towards renovating offices and buildings housing the staff of the Armenian Government and blueprint documentation.

90 million AMD will go towards renovating the National Assembly building’s windows and water/sewage system.  

35.2 million AMD will go towards purchasing a building to house Armenia’s diplomatic mission in Brussels.

There will be no increase to the 500 million AMD currently allocated for housing for the homeless families of disabled military personnel. Over the past three years the amount has increased by a mere 200,000 AMD.

Next year, there will be no money to compensate families whose severely derelict homes were demolished. This year some 2 billion AMD was spent.

Medical assistance to those registered as socially vulnerable and other special target groups will decrease by 9%. Similar medical assistance to military personnel will drop by 17.3%. Medical assistance to civil servants will drop by 22%.

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Comments (1)
1. Alec05:29 - 21 November, 2015
Subsidizing the railway is absolutely ridiculous--let Russian Railways CJSC sell the subsidiary if its not profitable. The whole idea of privatizing a government owned company is to remove the liability and open up the company to greater investment/efficiency. However $200,000 USD is a small price to pay to have access to a dozen MIG 29s; if you ask me the Armenian Taxpayer is getting a steal on this one.
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