Communities Finance Officers Association
ALLOCATED CAPITAL TRANSFERS FROM THE STATE BUDGET  TO THE MUNICIPALITIES BUDJETS IN ARMENIA ALLOCATED CAPITAL TRANSFERS FROM THE STATE BUDGET  TO THE MUNICIPALITIES BUDJETS IN ARMENIA

One of the important conditions for the development of local self-governmentsystem is collection of financial means in municipalities budgets and their targetinguse. The important source for the municipal capital expenditures is state budget inmany countries. Taking into account the weakness of the local self-government systemin Armenia we can say that foreign investment is very important for Armenia.
In this context special attention should be paid to the study of the allocation of capitaltransfers to the municipalities budgets from the state budget and developmentof necessary recommendations for its clarification and improvement.
“Hamaink” Public Administration Institute has studied the current situation of the allocation of capital transfers to the municipalities budgets from the state budget in Armenia and developed conceptual provisions for its allocation as well as training materials, which are targeted to give knowledge and skills to the employees of the local self-government system. Local democracy principals, requirements of strengthening of municipalities capacities as well as experience of different countries are taken into account.
Currently development of the institute of capital transfers is important not only for this field but also for other issues related to the capacity building of municipal servants, provision of transparency and publicity in decision-making, increasing of trust to the state institutions.
This book consists of two sections. Section Ais research and policy recommendations on capital transfers and section B – training materials. Any issue related to the development of local self-government system is directly connected to the capacities of employees of that system. Without capacity building and its strengthening it is impossible to provide the progress. This is the reason that policy recommendations are in parallel with training materials, study of which will give an opportunity to realize the suggested policy. Great input in research have the experts Arthur Drampian and Mkrtich (Sos) Gimishyan and in training materials – Arthur Drampian and Artur Ayvazov. The work has been done under the leadership of the Director of the “Hamaink” Public Administration Institute, doctor David Tumanyan.