This project aimed to assist the Government of Armenia in adopting a Programme Budgeting (PB) format at the local level to enhance transparency and efficiency in public financial management. The initiative fostered collaboration between the Ministry of Territorial Administration and Infrastructure (MTAI) and the Ministry of Finance (MOF) to ensure a coordinated approach to the transition. A key part of this process involved creating a Cooperation Platform to facilitate the introduction of PB practices locally.

A comprehensive Review of the Existing PB Methodology was conducted to harmonize local budgeting practices with the state-level approach, including the integration of Gender Responsive Budgeting (GRB) elements. This alignment ensures that local and national budgets follow consistent standards, improving strategic resource allocation and supporting Armenia's commitment to inclusive growth.

Additionally, the project developed a Draft Package of Legal Amendments to establish the regulatory framework needed for implementing PB at the local level. These amendments are crucial for empowering local governments to adopt outcome-based budgeting practices, ultimately enhancing the effectiveness of public spending and improving service delivery to local communities across Armenia.