ACCORDING TO ARMENIAN PRIME MINISTER, DEVELOPMENT RATES IN MARZES SHOULD EXCEED THOSE IN YEREVAN

NOYAN TAPAN

Feb 4, 2009
YEREVAN

Raising the level of administrative control of local government bodies
continues to be an urgent problem of the activities of the RA Ministry
of Territorial Administration, the deputy minister Vache Terterian
stated when presenting the annual report to the prime minister Tigran
Sargsyan on February 4. According to him, with this aim in 2008 the
ministry developed an order, but in the legal sense the order will
be put in use this year.

V. Terterian said that steps should be taken to improve the
implementation of local budgets and strengthen the control of
collection of own revenues by communities. In his words, the collection
of own revenues of communities grew in 2008 on 2007, in particular,
collection of land tax grew by 400 mln drams (about 131.4 mln USD),
of property tax – by 600 mln drams. The deputy minister said that
the administrative boundaries of about 100 communities were changed
last year so there is a necessity to clarify their tax bases, after
which a growth of tax collection is expected.

In 2008 the ministry worked out a protocol decision on approval of the
concept of development and implementation of programs on development of
Armenian marzes. V. Terterian noted that the document will contribute
to proportionate territorial development, which was proclaimed a
priority in the program of the Armenian government. The draft law
on local self-government in the city of Yerevan was developed and
adopted by the National Assembly.

With the aim of improving the financial equalization system, the
ministry worked out a new draft law on financial equalization. Besides,
the concept of local taxes in the RA and the conceptual approaches
on formation of intercommunity unions and enlargement of communities
were developed. The drafts on approval of the 2009-2011 development
programs of Gegharkunik and Tavush marzes (provinces) were submitted
to the government for approval.

Speaking about the territorial development problems in Armenia
and the work to be done in the next 3-4 years under the program of
medium-term expenditures, T. Sargsyan attached importance to the
problem of allocating more funds to marzes (provinces). "We will
start the process of developing the 2010 state budget of Armenia,
and it is necessary to view these proportions now in order to carry
out such redistributions that the development rates of marzes will
exceed those in the city of Yerevan," the prime minister said.