THE WAYS OF IMPROVING THE STATE ADMINISTRATION SYSTEM IN THE AREA OF SUBSOIL USAGE OF RA

Abstract

The issues on improving the state administration system in the subsoil usage sector of Republic of Armenia on the basis of legislative and institutional reforms are considered.

A brief description of the condition of the mineral resource base of Armenia is given, indicating the presence of significant reserves of various minerals in the territory of the republic and the real possibility of their use.

The role and importance of the mining industry in the economy of Armenia are shown, which, however, do not reflect the resource and economic potentials of the subsoil of the republic.

The problems of subsoil use in Armenia are indicated, which are reduced to the following significant shortcomings: the presence of a disbalance between the volumes of mineral extraction and the rate of reproduction of the mineral resource base; the violations of due proportionality between different stages of the geological study of subsoil; the presence of a disbalance between the volume of mining and market demand; the low efficiency of using the resource and economic potentials of subsoil; the imperfection of the process of granting subsoil for use; the imperfection of the current tax system in the field of subsoil usage and the applicable payment for the use of subsoil; subsoil usage in Armenia is not guided by the principle of sustainable development.

With the aim of improving the state administration system in the sector of subsoil usage industry, a number of legislative and institutional reforms are recommended. In particular:

• in Armenia, subsoil usage is organized in accordance with the “State Subsoil Use Program” approved by the decision of the Government of Armenia, which is developed by the authorized body, harmonious with the program of the socio-economic development of the country;
• the project of exploitation of mineral deposits is subject to state technical and technological expertise;
• the geological or other information about the subsoil is a product of the geological study of the subsoil and has a use value - it is the subject of free purchase and sale;
• the funds received from the sale of geological and other information about the subsoil, which belong to the state, form the “Fund for the Reproduction of the Mineral Resources Base of the Republic”;
• improving the current taxation system in the subsoil use industry;
• institutional changes in the state administration system in the subsoil usage industry with the provision of independent status.