MacroRegulation

Armenia’s government allocates 2.43 billion drams for 34 subvention programmes in 22 communities

Armenia’s government at its 12 November session allocated 2 billion 434 million 914.1 thousand drams for state co-financing of 34 subvention programmes in 22 communities. Armenia’s Minister of Territorial Administration and Infrastructure Davit Khudatyan said that with this decision the volume of subvention programmes co-financed from the 2026 state budget will reach 17.669 billion drams.

According to the draft’s rationale, the funds go to the regional governors’ offices to meet financial obligations to construction companies. Of the 34 programmes, 5 were approved in 2023, 3 in 2024, 22 in 2025 and 4 in 2026. By region, 4 programmes are financed in Ararat, 7 in Armavir, 8 in Gegharkunik, 4 in Lori, 2 in Kotayk, 1 in Shirak, 5 in Syunik and 3 in Tavush.

The minister said the works mainly cover street asphalting, tuff paving, water supply, drainage, expansion of the irrigation system and gasification. He singled out two programmes: construction of a sports school in Byureghavan and a kindergarten in the village of Nrnadzor in Meghri community, where the contractor was replaced during construction and a new tender was held. Davit Khudatyan said the kindergarten is ready and children will for the first time be able to attend a kindergarten in Nrnadzor itself.

The decision matters first to communities and to the construction companies that carry out the programmes and are paid from these funds. The minister said sports, art and music schools are on the list of priorities and the state co-financing share for such works has been increased.

Asked by Armenia’s Deputy Prime Minister Mher Grigoryan about the total volume of the programmes, the minister said the state co-finances some works at up to 70% and asphalting at about 35% on average. He estimated the total portfolio of programmes implemented so far at about 35 billion drams. Over the past two to three years state co-financing has been about 30 billion drams a year, last year it exceeded 30 billion drams, and together with the communities’ share the annual volume of works is about 60 billion drams. The minister said he hopes the 2026 volume and list will grow by year-end.

According to the rationale, the interagency subvention commission approved 363 programmes in 2022, 273 in 2023, 242 in 2024 and 204 in 2025. The practical takeaway for construction companies: payments of the state share for programmes approved in earlier years and now being completed continue from the 2026 budget, and the list of programmes is given in the annex to the decision.

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