The Polaris Programme “Supporting Multilevel Governance in Ukraine” selected seven partner hromadas for further cooperation in "Fiscal Decentralisation". 

The cooperation will focus on strengthening the hromadas’ financial capacity, including by improving their work with local taxes and fees and establishing more effective management of local tax arrears.

In total, 17 applications were received from hromadas in five regions of Ukraine: Volyn, Zhytomyr, Odesa, Cherkasy and Chernivtsi.

The open call attracted applications from hromadas across five regions of Ukraine. The applications were reviewed based on key criteria, including population, the share of local taxes and fees in local budget revenues, tax arrears, and the teams’ readiness to cooperate and introduce organisational changes. Representatives of 13 hromadas were invited to interviews as the final stage of the assessment.

Following the open call, seven hromadas were selected for cooperation with the Polaris Programme:

Cherkasy Oblast

• Zolotonosha City Territorial Hromada

Chernivtsi Oblast

• Velykyi Kuchuriv Rural Territorial Hromada

Zhytomyr Oblast

• Ruzhyn Settlement Territorial Hromada
• Luhyny Settlement Territorial Hromada

Odesa Oblast

• Rozdilna City Territorial Hromada
• Chornomorske Settlement Territorial Hromada
• Avanhard Settlement Territorial Hromada

“It is important for us that hromadas do not simply receive individual recommendations, but strengthen their own capacity to make financial decisions independently and build sustainable internal processes. That is why this cooperation is not only about expert support, but also about working together with hromada teams on changes that will continue to deliver results after the Programme’s support ends,” said Mariia Lukianova, Head of the Fiscal Decentralisation team at the Polaris Programme.

The next step will be an expert assessment of the financial situation of the partner hromadas, identifying key challenges and opportunities to improve work with local taxes and fees. Based on the experts’ recommendations, a step-by-step plan will be developed jointly with each hromada to strengthen local budget revenues and improve the management of local tax arrears.

As these plans are implemented, Polaris will provide institutional, advisory and digital support. The cooperation will also include training and the exchange of practical experience with hromadas that have already developed effective approaches to working with local taxes and fees.

Cooperation with the partner hromadas will be based on signed Memorandums of Cooperation and will focus on creating effective mechanisms to strengthen the own-source revenues of local budgets.