Fiscal decentralization in Armenia concepts, structures and problems

Abstract

My Master’s Essay is going to discuss and deal with the decentralization issue, thus, investigating the process of decentralization in Armenia. The concentration of this paper is to be the concepts of fiscal decentralization, its problems and strategies in Armenia. The paper examines the structure of fiscal decentralization in Armenia, its ongoing process of decentralization, the efficiency of the division between the local and central governments, the existing barriers for localities The problem that is going to be discussed in the paper is the inabilities of local governments to fulfil their legal responsibilities in view of critical lack of funds available both at the local level and through transfers from the central government. Given the present legal and financial framework, critical barriers exist which will prevent local government from fulfilling its mission and legal responsibility. The above mentioned analysis will take the period of 1995 – 2000 years.