Administrative territorial reforms have been underway in the Republic of Armenia since 2015. The processes of community enlargement had positive and negative effects, influencing the proportional development of communities, resident participation levels, and absolute and relative indicators of incomes and causing changes in significant dependence on the state budget. The increase in the number of Armenian communities has led to a change in the main priorities of their expenditures. Prior to enlargement, numerous communities with limited financial opportunities are now engaging in capital spending, a crucial factor for long-term economic development. As a result of the enlargement, many changes should be implemented in the communities, including consolidation of human resources, consolidation of infrastructures and increasing the efficiency of service delivery, strengthening of financial capabilities and expansion of the scope of exercised powers, creation of greater opportunities for the development of agriculture, and positive impact of scale effect. In the Charentsavan community of Kotayk marz (enlarged in 2017) and in other enlarged communities of the Republic of Armenia, there was a plan to enhance cost management efficiency through the scale effect. Despite this, there was a demand for specific quantitative and qualitative changes in the powers of local government. It is noteworthy that post-enlargement in the Charentsavan community, an increase in absolute and relative values of own incomes is observed, suggesting a gradual reduction in dependence on the state budget. Simultaneously, capital costs in the areas of education, housing construction, and communal economy saw an increase.