Minister: It is impossible to ensure proportional development of  territories in Armenia, if there are no stable, strong,  future-oriented communities

ArmInfo. It is impossible  to ensure proportional development of territories in Armenia, if  there are no stable, strong, future-oriented communities. And it is  no coincidence that in 2017 the main emphasis was placed on  structural changes in the system of local self- government bodies,  According to the Minister of Territorial Administration and  Development David Lokyan`s statement at a press conference in Yerevan  on February 23.

According to him, last year the community development strategy was  approved, programs for their development were approved with the  application of new methods. More than 10 methodical guidebooks have  been actively applied, which are provided to the communities, and  which in various directions regulate the actions of local  self-government bodies. In particular, it is about defining the  community administration, how it should lead the community, providing  appropriate services, how it should provide on-site economic  development, and what is needed for this. In this connection, 104  responsible persons are identified who in the field make development  programs, presenting them to the regional structures in the future,  and from there to the government for the purpose of subsequent  financing.

One of the problems of the communities, according to the minister, is  the staff schedule of local government administrations. The absence  of previously complex approaches to solving the problems of the  communities led to the accumulation of a wage debt of 1 billion  drams. With the application of new methods in 2017, this debt was  reduced by 200 million drams, and there are all prerequisites for the  final solution of the problem in 2018.

According to the new strategy, local authorities will no longer have  the possibility of unlimited use of subsidies provided by the state  budget. Annually 48 billion drams are directed to the state budget  for subsidizing local self-government bodies. Now the main emphasis,  Lokyan continued, will be made on the growth of own incomes, increase  of motivation of employees of administrations of communities to  achieve the set goal. In past years there have been cases when 85% of  all subsidized funds went to pay wages. Now, such mechanisms have  started to be applied that will provide the opportunity to provide  services to community residents, and not just receive salaries. As a  result, in 2017, an order was established according to which  communities were able to have their own budget funds, the funds of  which would be spent on capital expenditures and purchase of  equipment in these communities. As of January 1, 2018, about 6  billion drams have been accumulated in such funds, which will be used  exclusively for capital expenditures, which will lead to the growth  of the country's economy as a whole and the formation of additional  values.

The minister stressed that local self-government bodies should  increase their own revenues, and expenditures should be used  effectively. In 2017, the country's communities were able to  replenish their budgets for a total of 4.059 billion AMD. Last year  was unique in that, in comparison with previous years, it was finally  possible to increase by 419 million AMD the volume of revenues from  the application of the land tax. From 2009 to 2017, these indicators  were constantly decreasing. And this means that communities have the  necessary administrative resources to address this issue. Another 1.2  billion drams were raised from the property tax. If in general to  talk about five types of taxes - land tax, property tax, state duty,  local payments and rental income, in 2017 it was raised 2.6 billion  drams more than a year earlier. Only for garbage collection 1.6  billion AMD were received, which is 400 million drams more than in  2016.  Nevertheless, these 1.6 billion AMD make up only 40% of the  required funds. In 2018 it is planned to bring this figure to 2.8  billion AMD. This indicator is planned to be achieved, including, due  to 18.6 thousand contracts concluded with legal entities that carry  out entrepreneurial activities in the communities of the republic.  Previously, these business entities paid a ridiculous amount. For  example, gas stations paid 300 drams every month against 200 AMD paid  by a community resident. Now for legal entities, the amount of  payments will be 12-13 thousand drams a month.

In parallel with increasing incomes, communities should learn how to  provide services. For example, in the regions of the country there  are about 500 kindergartens, but there are communities in which  pre-school institutions did not work. Today, as a result of the  application of new methods and the assistance of international  structures, new pre-school institutions are opening. Only in the  Tumanyan community four pre-school institutions were opened last  year. It is envisaged to provide all children with pre-school  education until 2022.