STRUCTURAL FEATURES AND KEY ISSUES OF THE LOCAL SELF-GOVERNMENT BUDGETING SYSTEM IN THE REPUBLIC OF ARMENIA

Abstract

The article analyzes the local budgeting system in the Republic of Armenia based on official data on aggregate local budgets for 2020–2025. It examines the dynamics and structure of revenues and expenditures, as well as the features of budget planning and execution.

   The analysis shows that state transfers dominate the revenue structure of local budgets, leading to financial dependence on central authorities, while the growth of own-source revenues remains insufficient to ensure adequate financial autonomy. At the same time, expenditures are largely concentrated in administrative functions, whereas the share of capital investments remains limited.  

    In addition, discrepancies between planned and actual budget indicators indicate the need to improve the effectiveness of financial management. Overall, the study identifies key structural and institutional challenges of the system, emphasizing the need to strengthen financial autonomy and enhance the efficiency of budgetary management.