Gohar Gevorgyan

However, accountability and dissemination of draft project information as stipulated by the law still hasn’t become accepted operating practice.

At the year-end Council meeting in the village of Aramus in the Kotayk Marz (Region), the 10 Council members in attendance warmly greeted the words of the Village Mayor who, in his annual review, stated that the community had successfully completed its 2007 budget.

The only budgeted project that the Municipality failed to implement was to send children of underprivileged families away for a summer vacation. Village Mayor Hrayr Nikoghosyan promised,” This was our only shortcoming last year but this year we’ll see it gets done.” In the presence of the Council members the Mayor justified this failure by stating that a majority of the Municipality’s financial resources went to the construction of the village’s kindergarten at an estimated price tag of 46.6 million drams.

Famous for its carrot crop, the village of Aramus knew beforehand about our visit. It was expected then that the Council meeting, with we journalists in attendance, would proceed without a hitch. Such is accepted practice at events where there are journalists present. As it turned out we were wrong since at the start of the meeting the presence of foreigners seemed to rile the members. But they gradually got used to us and began to discuss a host of issues on the agenda.

Aramus is a village with 3500 inhabitants. As the Council pointed out 98% of its 2007 budget, amounting to 17.6 million drams, was implemented. 63% of projected land taxes were collected (4.5 million drams out of a projected 7 million) and 98% of projected property taxes were realized. Revenues from land rentals and sales surpassed projected amounts. Mayor Nikoghosyan explained this fact by stating that this year the villagers were able to pay off debts incurred in then past related to land rentals and purchases. Thus, not only were projected budgetary revenues realized but some 9 million drams was carried over to the 2008 budget.

After the presentation regarding the implementation of the budget, the Council session really heated up. All the members took the floor and voiced their particular concerns. Afterwards they jointly discussed the priorities of the 2008 fiscal year. 

As stated by Mayor Nikoghosyan, most of last year’s budget was mainly earmarked for the economic sector and community improvement projects. It was with apparent self-satisfaction that the Mayor noted the admirable custom of his office to recompense the medical surgery costs of the villagers to the tune of 50%. He also beamed proudly that the Municipality financially rewarded the families of newly-born children and that monthly payments, equaling state pensions, went to war veterans, the disabled and the families of those who died in battle. Lat year the Municipality allocated 1.5 million for surgeries, 340,00 to families of the war dead, 540,000 to assist those with new children and 850,00 to assist the disabled. A deputy to Mayor Nikoghosyan added that, “A positive trend in 2007 was that we allocated more in social benefits for new births than for war related deaths.” The Mayor gave assurances that social benefit payouts will increase in 2008.

In 2007 Aramus started repair work on the village cultural/athletic complex that it inherited in ruins. Half of the 46.4 million drams earmarked for the necessary repairs has already been allocated from the 2007 budget and the remainder will be paid out from the 2008 budget. Thus, the cultural and athletic needs of the village will mostly be met. A large part of the repaired building will house the kindergarten. The Mayor declared that a portion of the work, for which 22 million drams had been earmarked, has already been completed. Expenditures from the 2008 budget will ensure completion of the work. This year 4 neighborhoods of the village will be supplied with gas and the general school will get new doors and windows, all financed by Municipality funds.

The Mayor says that the village residents mostly earn a living by cultivating carrots and that they rarely grumble about life’s difficulties. He says they even rent tracts of land from neighboring villages to cultivate. The village never encounters a problem collecting land taxes as all voluntarily pay what is owed in a timely fashion. The Mayor blamed this year’s shortcoming in the collection of land taxes on the low market price of carrots that in turn greatly affected the ability of the villagers to make their social payments. He remarked that this was the only year in which 63% of projected taxes were collected. The Mayor optimistically added, “What’s important is that the intention to rebuild the village exists. Our people work away like industrious ants. In this way we’ll reach our objectives.”

It’s apparent that the methods of community governance dominate within the Aramus Municipality. However, what still seems to lacking is the perception that, in addition to earmarking budgetary funds for a variety of projects, one must not overlook the necessity to disseminate information regarding budgetary draft proposals and procedural oversight, something that is mandated according to the law. Even on the day we were present at the Council meeting two important issues on the agenda, namely the annual accounting review of the budget and the 2008 budget draft, were debated and proposals made solely based on the oral statements made by the Mayor. None of the Council members even had a copy of draft budget in their possession. In effect, what transpired was that the Council, merely on the personal say-so of the Mayor, accepted the draft budget.