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The aim of the draft is to equalize the income capabilities of the communities, taking into consideration the expenditure needs of the communities. The RA Deputy Minister of Territorial Administration and Infrastructure Vache Terteryan said this at November 10 sitting of the NA Standing Committee on Territorial Administration, Local Self-Government, Agriculture and Environment Protection.

The Committee members debated the draft law on Making Amendments and Addenda to the Law on Financial Equalization in the first reading.

Vache Terteryan informed that the requirement of transitional provisions of the law on Financial Equalization was extended three times. He noted that the transitional provisions will be removed from the law. According to the key rapporteur, several new emphases were made: Firstly, 50 million drams will be given from the subsidy fund to the communities with up to 3.500 residents. Secondly, an additional 5 million drams will be allocated to each of the communities’ border settlements, and thirdly, the coefficient of distance from the regional center and Yerevan has increased, which will affect the increase in the amount of subsidy.

Vache Terteryan informed that the altitude coefficients of the communities were also changed.

The Committee endorsed the draft law and proposed to hold the NA debate in the second reading within 24 hours after its adoption in the first reading.