The structural changes in Armenian Community budgets within the process of community consolidation

Abstract

This paper investigates the financial decentralization in the Republic of Armenia (RA) within the context of community consolidation processes that started in RA in 2015. It presents conclusive and empirically tested interpretation of the changes in the own‐sourced revenues of the community budgets due to consolidation processes and assesses the pace and direction of changes in the weight of own‐sourced revenues in the consolidated vs. non‐consolidated community budgets using β‐ and σ‐convergence models. It has examined the data collected from 501 communities in RA from 2015 through 2018. The results of the research pinpoint that the growth pace of own‐sourced revenues is higher in the consolidated communities as compared to non‐consolidated communities. This evidence supports the initial hypothesis specified in the “Concept of community consolidation and formation of intercommunity units” adopted by the Government of RA, that the consolidation of communities will result in expansion of the revenue generation capacity of the newly formed communities, which needs to be disseminated by policy‐makers in non‐consolidated communities to support the even transition process of the further consolidation that will relaunch after the Velvet Revolution of 2018.

The determinants of population satisfaction from local authorities' activities: Evidence from Armenia

“…The obtained results were consistent with the results of Karapetyan et al (2021), as they stated that listening to the opinion of the community may enhance the efficiency of consolidation process, and consequently the satisfaction level of population. Low levels of competence among the population were also elaborated («Asparez» Club of Journalists Public Organization, 2016).…”

“…Low levels of competence among the population were also elaborated («Asparez» Club of Journalists Public Organization, 2016). Low satisfaction levels among the population were one more indicator that most communities could not fully implement all the powers reserved by the law yet, especially when it comes to providing community services as highlighted (Karapetyan et al, 2021). The number should be in the range of 1 and 130.…”

Challenges and policies for middle‐income trapped regions and cities

“…Karapetyan, Muradyan, Yeranosyan, and Grigoryan (2021) investigate how community consolidation processes affect fiscal decentralization in Armenia. They find that own‐source revenues grow faster in consolidated communities.…”