Mayor proposes reviewing state financial support for Yerevan

Under Armenia’s 2027 state budget draft, 48 billion 766 million drams is earmarked for the Yerevan Municipality, of which 13.6 billion drams will come from loans and grants, Yerevan Mayor Tigran Avinyan told lawmakers.

Speaking at a joint meeting of parliamentary committees on the 2027 state budget, he said that the construction of the Isakov-Arshakunyats road section in Yerevan, which has already begun, is planned to continue with financing from external sources.

The second phase of major renovation works aimed at improving energy efficiency and saving energy in 38 public buildings, including 6 polyclinics and 32 kindergartens, which began this year, will also continue.

“1 billion 190 million drams has been earmarked for the implementation of subsidy programs, of which 765 million drams will be allocated for road markings, traffic signs and traffic light installation, while 419 million drams will go toward the implementation of educational programs. 1 billion drams has been earmarked under the program to address the problems of dilapidated buildings in Yerevan and provide housing,” he said.

This amount, he said, is intended for a specific project to ensure the resettlement of residents of two buildings slated for demolition at 66/1 and 68A Vardashen 6th Street.

Addressing the financial equalization grants provided to the Yerevan Municipality, Avinyan said that they have decreased almost fivefold over the past four years.

He said that the approaches to providing state financial support to the Yerevan Municipality need to be reviewed, with a new, financially sustainable and sound mechanism established.

“I think this requires fundamental discussion so that a new, financially sustainable and sound mechanism can be created, one that will not lead to a situation where the Yerevan Municipality works every year to increase its own revenues and actually does so through its own efforts and resources, using these funds to build kindergartens, courtyards, streets and sidewalks, while, on the other hand, our partners reduce state allocations year after year. I think this is something that truly needs to be reviewed,” Avinyan added.