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Armenia

Which countries lead in budget accountability? Which ones need improvement? Explore our data and recommendations for each of the 120 countries assessed.

 

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This country is being assessed for the first time.
Open Budget Survey Results

Public Participation

6

Budget Oversight

50

Transparency

61

Open Budget Survey 2021

Government budget decisions – what taxes to levy, what services to provide, and how much debt to take on – have important consequences for all people in society. When governments provide information and meaningful channels for the public to engage in these decisions, we can better ensure public money is spent on public interests.

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The Open Budget Survey (OBS) is the world’s only independent, comparative and fact-based research instrument that uses internationally accepted criteria to assess public access to central government budget information; formal opportunities for the public to participate in the national budget process; and the role of budget oversight institutions, such as legislatures and national audit offices, in the budget process.

The survey helps local civil society assess and confer with their government on the reporting and use of public funds. This 8th edition of the OBS covers 120 countries.

Summary
Country Specific Assessments
Country summary EN
pdf, 298.6 KB
Questionnaire EN
pdf, 912.08 KB
61 /100

This part of the OBS measures public access to information on how the central government raises and spends public resources. It assesses the online availability, timeliness, and comprehensiveness of eight key budget documents using 109 equally weighted indicators and scores each country on a scale of 0 to 100. A transparency score of 61 or above indicates a country is likely publishing enough material to support informed public debate on the budget.

Transparency in Armenia compared to others

Global Average
45
Georgia
87
Russia
73
Kazakhstan
63
Kyrgyz Republic
62
Armenia
61
Mongolia
60
Turkey
55
Tajikistan
16
0
Insufficient
61
Sufficient
100

Armenia’s ranking: 33 of 120 countries

0
100

Public availability of budget documents in Armenia

Key
Available to the Public
Published Late, or Not Published Online, or Produced for Internal Use Only
Not Produced
Scroll
Document 2021
Pre-Budget Statement
Executive’s Budget Proposal
Enacted Budget
Citizens Budget
In-Year Reports
Mid-Year Review
Year-End Report
Audit Report

How comprehensive is the content of the key budget documents that Armenia makes available to the public?

Key
61-100 / 100
41-60 / 100
1-40 / 100
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Key budget document Document purpose and contents Fiscal year assessed Document content score
Pre-Budget Statement Discloses the broad parameters of fiscal policies in advance of the Executive's Budget Proposal; outlines the government's economic forecast, anticipated revenue, expenditures, and debt. 2021 100
Executive’s Budget Proposal Submitted by the executive to the legislature for approval; details the sources of revenue, the allocations to ministries, proposed policy changes, and other information important for understanding the country's fiscal situation. 2021 63
Enacted Budget The budget that has been approved by the legislature. 2021 89
Citizens Budget A simpler and less technical version of the government's Executive’s Budget Proposal or the Enacted Budget, designed to convey key information to the public. 2020 Published Late
In-Year Reports Include information on actual revenues collected, actual expenditures made, and debt incurred at different intervals; issued quarterly or monthly. 2020 85
Mid-Year Review A comprehensive update on the implementation of the budget as of the middle of the fiscal year; includes a review of economic assumptions and an updated forecast of budget outcomes. 2020 Not Produced
Year-End Report Describes the situation of the government's accounts at the end of the fiscal year and, ideally, an evaluation of the progress made toward achieving the budget's policy goals. 2019 74
Audit Report Issued by the supreme audit institution, this document examines the soundness and completeness of the government's year-end accounts. 2019 48

Recommendations

Armenia should prioritize the following actions to improve budget transparency:

Always publish the Citizens Budget online in a timely manner. During the period of research, the Citizens Budget was published later than three months after the budget was enacted. Subsequently, the Citizens Budget has been published in a timely manner.
Produce and publish the Mid-Year Review online in a timely manner.
Improve the comprehensiveness of the Audit Report by publishing an executive summary of the financial audits and publishing the results of all audits of extra-budgetary funds.
Provide machine readable, disaggregated data by type and sources for revenue estimates and revenue collections in all budget documents.
Provide a glossary to explain and clarify multiple budget documents and associated tables in the budget estimates.
Publish the Year-End Report and Audit Report on the unified website for publication of the Legal Act Drafts – https://e-draft.am
6 /100

The OBS assesses the formal opportunities offered to the public for meaningful participation in the different stages of the budget process. It examines the practices of the central government’s executive, the legislature, and the supreme audit institution (SAI) using 18 equally weighted indicators, aligned with the Global Initiative for Fiscal Transparency’s Principles of Public Participation in Fiscal Policies , and scores each country on a scale from 0 to 100.

Armenia has a public participation score of 6 (out of 100).

Public participation in Armenia compared to others

Global Average
14
Georgia
44
Russia
28
Kyrgyz Republic
26
Mongolia
13
Kazakhstan
9
Armenia
6
Tajikistan
0
Turkey
0
0
Insufficient
61
Sufficient
100

For more information, see here  for innovative public participation practices around the world.

Extent of opportunities for public participation in the budget process

0
/100
Formulation
(executive)
33
/100
Approval
(legislature)
0
/100
Implementation
(executive)
0
/100
Audit
(supreme audit institution)
Key
0-40: Few
41-60: Limited
61-100: Adequate

Recommendations

To further strengthen public participation in the budget process, Armenia's Ministry of Finance should prioritize the following actions:

Radically improve current regulations to engage the public during budget formulation and pilot mechanisms to monitor budget implementation.
Actively engage with vulnerable and underrepresented communities, directly or through civil society organizations representing them.

Armenia's National Assembly has established submissions related to the approval of the annual budget, but should also prioritize the following actions:

Allow any member of the public or any civil society organization to testify during its hearings on the budget proposal prior to its approval.
Allow members of the public or civil society organizations to testify during its hearings on the Audit Report.

The Audit Chamber of the Republic of Armenia should prioritize the following actions to improve public participation in the budget process:

Establish formal mechanisms for the public to assist in developing its audit program and to contribute to relevant audit investigations.
50 /100

The OBS examines the role that legislatures and supreme audit institutions (SAIs) play in the budget process and the extent to which they provide oversight; each country is scored on a scale from 0 to 100 based on 18 equally weighted indicators. In addition, the survey collects supplementary information on independent fiscal institutions (see Box).

The legislature and supreme audit institution in Armenia, together, provide limited oversight during the budget process, with a composite oversight score of 50 (out of 100). Taken individually, the extent of each institution’s oversight is shown below:

Legislative oversight

0
44
100
limited

Audit oversight

0
61
100
adequate
Key
0-40: Few
41-60: Limited
61-100: Adequate

Recommendations

Armenia's National Assembly provides adequate oversight during the planning stage of the budget cycle and weak oversight during the implementation stage. To improve oversight, the following actions should be prioritized:

Legislative committees should examine the Executive’s Budget Proposal and publish reports with their analysis online.
Legislative committees examining in-year budget implementation should publish reports online with their findings.
In practice, ensure the legislature is consulted before the executive shifts funds specified in the Enacted Budget between administrative units; spends any unanticipated revenue; or reduces spending due to revenue shortfalls during the budget year.
Legislative committees examining Audit Report should publish a report online with their findings and recommendations.

To strengthen independence and improve audit oversight by the Audit Chamber of the Republic of Armenia, the following actions are recommended:

Ensure the supreme audit institution has adequate funding to perform its duties, as determined by an independent body (e.g., the legislature or judiciary).
Ensure audit processes are reviewed by an independent agency.

The emerging practice of establishing independent fiscal institutions

Armenia does not have an independent fiscal institution (IFI). IFIs are increasingly recognized as valuable independent and nonpartisan information providers to the Executive and/or Parliament during the budget process.

*These indicators are *not* scored in the Open Budget Survey.

Methodology

  • Only documents published and events, activities, or developments that took place through 31 December 2020 were assessed in the OBS 2021.
     
  • The survey is based on a questionnaire completed in each country by an independent budget expert:
    Varuzhan Hoktanyan; Sona Ayvazyan
    Transparency International Armenia

    [email protected]; [email protected]
  • To further strengthen the research, each country’s draft questionnaire is also reviewed by an anonymous independent expert, and in Armenia by a representative of the Ministry of Finance.