A systemic reform of state property management is planned. Instead of free use, all state property will now be leased to government bodies, public institutions, foundations, CJSCs, and other organizations.
The legislative package amending the Law on State Non-Commercial Organizations and related laws was presented for first reading at the Standing Committee on Economic Affairs by Arnak Avetisyan, chairman of the State Property Management Committee under the Ministry of Territorial Administration and Infrastructure.
If adopted, every state body will be required to submit an annual budget request and transfer rental payments for the property it occupies to another line in the state budget. According to Avetisyan, this reform will increase transparency in budget expenditures and significantly improve the efficiency of state property management. The model is already in place in almost all developed countries.
Avetisyan explained that by the end of 2027, all government bodies and organizations must return property previously allocated for free use and re-sign contracts on a lease basis. This process will also allow for a full inventory of state-owned assets.
“Pricing is a key issue: how will rent be calculated? We support the principle that it should be based on market conditions, meaning no difference whether the lease is to a state body or a private entity — the real cost level should be visible. Since full market-based valuation would require extensive resources, at the first stage the government decided to calculate rent using a formula based on the cadastral value, adjusted to approximate market levels. Once the system is in place, the long-term vision is to fully shift to market-based values,” Avetisyan said.
The committee issued a positive opinion on the initiative.
