2% of Royalties will be Allocated to the Community Budgets
On March 4, 2022 the National Assembly adopted the the Law "On Making Amendments to the Law on the Budget System of RA" and the Law "On Making Amendments to the Law on Local Self-Government".
According to the adopted legal regulations, the contributions will be made from 2% of the royalty paid to the state budget by each mining company in the reporting year. The contributions to the communities will be calculated in accordance with the law.
The community contribution of each royalty paying mining company will be distributed through a two-tier system of community budgets. 50 percent of the community allocations will be evenly distributed among the affected communities of the company, and the other 50 percent will be evenly distributed among all other communities of Armenia, that have affected settlements of other royalty payer companies, excluding the communities included in the first part.
As a result of such contributions, the budgetary capacity of the communities will increase, ensuring their sustainable and continuous development.
The adopted laws will enter into force on 1 January, 2023.