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This legislative initiative proposes an amendment according to which, from now on, in addition to 30 % of the money from the privatization of state property, 30 % of the money from the alienation of state plots of lands will be considered income of the municipal budget and will be transferred to the budgets. The Deputy Minister of Territorial Administration and Infrastructure Vache Terteryan said this in the plenary session hall of the National Assembly on May 23 during reporting the package of draft laws of the Republic of Armenia on Making Amendments to the Law on the Budgetary System of the Republic of Armenia, on Making Amendments to the Law On Local Self-Government and on Making Amendments and Addendum to the Law on Local Self-Government in Yerevan.

According to the Deputy Minister, this is an initiative of systemic importance, which creates opportunities for financial decentralization in communities.

The representative of the Ministry informed that the package of drafts was debated in the relevant Committee.

The deputy of the Civil Contract Faction Sergey Bagratyan inquired from Vache Terteryan whether there is a legislative regulation by which interest will be transferred to the community from the money received as a result of the lease of state plots of lands, in response to which the Deputy Minister stated that the issue has been settled long ago.

“Communities are given interest from land lease, it is called community income. It was only in case of land alienation that the entire income was directed to the state budget. Now we equate land and state-owned property and see it as one ideology. I am sure that in case of appropriate developments, we will consistently go the way of increasing the incomes of the communities, we will also consider the change of the 30% interest threshold,” Vache Terteryan said.

The member of the Standing Committee on Territorial Administration, Local Self-Government, Agriculture and Environment Protection Davit Danielyan made a related report. He stated that the draft is an attempt to support communities and to increase their resources. The deputy called to vote for the draft, as it was endorsed in the Committee.