The scope of voluntary amalgamation of hromadas (AHs) is increasing throughout the country. Strong activity of local councils is stipulated by the possibility to significantly expand their powers and obtain additional resources for their territories’ development.

However, qualitative parameters of decentralisation of local self-government bodies are currently more significant than quantitative ones. Hromadas have to be financially, economically, socially and professionally capable to ensure sustainable development of the territory and deliver high-quality services to the population, Yanina Kazyuk, financial decentralisation coordinator of the Central Reform Office under MinRegion, told the Decentralisation website.

According to her, to help local self-government bodies of amalgamated hromadas to find new tools for their territories’ development, Financial Monitoring Group experts of the Central Reform Office under MinRegion continue to monitor and assess the financial capacity of 366 AHs.

The results of such monitoring over 9 months of 2017 were presented at the 2nd All-Ukrainian Forum of Amalgamated Hromadas “Life-changing Initiatives”, held in Kyiv on 4 December 2017.

“The monitoring results clearly show that hromadas with larger population have a higher financial potential than those with a population of less than 5,000 people. There are few exceptions regarding small hromadas with powerful enterprises. It suggests that small hromadas should think about raising their development potential,” said Yanina Kazyuk.

20 AHs – leaders of financial monitoring

They are grouped based on AH population.

According to the expert, those hromadas that are constantly increasing their own revenues using all reserves, and attracting investment resources, are more powerful. It is also important to introduce a high-quality personnel policy, since professional employees allow hromadas to mobilise additional funds and ensure their efficient use.

Yanina Kazyuk reminded that assessment of the financial capacity of 366 AHs was carried out on the results of the local budgets implementation monitoring over 9 months of 2017 in accordance with the four key indicators that reflect:

• own revenues per resident;
• level of budget subsidy (the share of basic / reverse subsidies in the revenue);
• share of expenditures to maintain the management apparatus in AH’s own resources (without transfers from the state budget);
• capital expenditures per resident.

A general AH rating was formed based on these indicators.

It is available by the LINK, and is presented in the context of oblasts HERE.

Reference:

Monitoring of the financial capability of AHs was carried out by the Financial Monitoring Group of Experts of the Central Reform Office under MinRegion.