EVALUATION OF TRANSPARENCY, OPTIMIZATION OF BUDGET EXPENDITURES, AND THE STUDY OF EXISTING ISSUES IN LOCAL SELF-GOVERNMENT BODIES

This article examines the transparency and optimization of expenditures made from the local government budgets (also referred to as LGUs) for the procurement of goods, services, and works. The study investigates the “transparency” of financial resource allocation from the LGU budgets and the procedures ensuring the transparency of spending allocated to state administrative bodies. It also presents potential solutions for addressing the issues identified in LGUs to enhance the optimization and transparency of budget spending. The study reviews several provisions of the Law on Local Self-Government of the Republic of Armenia, the Law on Procurement (including the Armenian Law on Procurement and other related legal acts), and assesses the level of residents’ awareness regarding the allocation of resources from LGU budgets. Within the scope of this article, procurement procedures for goods, services, and works acquired through LGU budgets in Armenia from 2020 to 2024 have been analyzed, as well as existing gaps identified. By examining the electronic procurement system employed by state administrative bodies, it becomes evident that such acquisitions exhibit tendencies toward transparency and optimal expenditure of budgetary resources. However, a different situation exists in LGUs and their subordinate bodies, where transparency and trends of optimal budget spending are absent.