NALAS-Led Mission Kicks Off Comprehensive Study on Fiscal Decentralisation in Armenia
As part of ongoing efforts to support the decentralisation reform agenda in Armenia, the Support to Decentralisation and Local Self-Government Reforms in Armenia (DeaLoG) project has launched a comprehensive study on fiscal decentralisation. The study is carried out by the team of international and local experts led by Network of Associations of Local Authorities of South-East Europe (NALAS).
The assignment includes both a desk study and on-site activities such as interviews and focus group discussions. As part of the NALAS expert team leading the assessment, two international experts—Mr Elton Stafa and Mr Kelmend Zajazi - in the week of June 16-20, 2025 visited Armenia for the first mission aimed at analysing the current fiscal framework, identifying systemic gaps, and developing practical recommendations for a more efficient and accountable model of fiscal decentralisation.
The experts’ agenda was both full and intensive, featuring a wide range of high-level meetings and discussions with key stakeholders. Meetings were held with representatives of the Ministry of Territorial Administration and Infrastructure, Ministry of Labour and Social Affairs, Ministry of Health, Ministry of Education, Science, Culture and Sports, the Ministry of Finance, the State Revenue Committee. Discussions were also held with development partners involved in the reform process.
Particularly constructive exchanges took place with the Ministry of Finance, focusing on the structure and dynamics of intergovernmental transfers, and with Yerevan Municipality, whose scale and complexity as the capital city offered valuable insights into the challenges and opportunities of local governance in an urban context.
In addition to meetings with central government bodies, the experts also had the opportunity to engage directly with representatives of municipalities, among them especially highlighting the meetings with the Mayors of Yerevan and Vedi. These field visits and focus group discussions provided valuable perspectives on the practical challenges faced by local self-government bodies, particularly in terms of service delivery, financial autonomy, and administrative capacity. This balanced approach ensured that the assessment was informed by both national-level policy frameworks and the everyday realities experienced at the local level.
The visit concluded with an in-depth discussion involving Armenian professionals with extensive experience in public finance and fiscal policy. During this exchange, the experts presented a comparative overview of international practices, illustrating how different countries allocate financial resources to local communities and the extent of their fiscal autonomy. Their reflections contributed meaningfully to the ongoing dialogue around Armenia’s reform path, highlighting practical solutions that could support a more balanced and responsive system of intergovernmental fiscal relations.
This week-long expert mission marked a significant step in Armenia’s journey toward fiscal decentralisation. By engaging both national institutions and local actors, and by combining analysis with knowledge exchange, the visit laid a strong foundation for developing a practical, evidence-based roadmap to support the country’s ongoing decentralisation reform.