The experts of the Financial Monitoring Group of the Central Reform Office under MinRegion (with the support of the U-LEAD with Europe Programme and SKL International) analysed how much each amalgamated hromada (AH) has earned per capita in 2017 and what financial results ensured amalgamation.

In 2017, 366 AHs, established in 2015 and 2016, were functioning as separate parties of interbudgetary relations. Yanina Kazyuk, financial decentralisation coordinator of the Central Reform Office under MinRegion, commented on the results of hromadas’ activity within the new conditions provide by decentralisation.

According to her, as a result of 2017, 159 AHs where the first elections were held in 2015, received UAH 4.4 billion of their own revenues. The average revenue indicator per capita over these hromadas was UAH 3170, which is 4.6 times more than that of in 2015.

Regarding 207 hromadas that amalgamated in 2016, their own budget revenues amounted to UAH 4.9 billion in 2017 – UAH 2844.3 per capita (2.9 times higher than that of 2016).

Yanina Kazyuk emphasised that the general results of implementation of the local budgets of AHs show positive trends in filling their revenue part.

“Such results have been achieved by expanding the taxation base by means of the personal income tax, as well as by increasing the quality of administration of payments to the budgets through the application of motivational mechanisms provided by decentralisation. Accordingly, hromadas can now earn much more than they used to earn prior to amalgamation,” commented the expert.

More detailed information on the dynamics of local budget revenues per capita in terms of 366 AHs and oblasts of Ukraine can be found HERE.

The materials were prepared by the Financial Monitoring Group of the Central Reform Office under MinRegion (with the support of the U-LEAD with Europe Programme and SKL International):

• Yanina Kazyuk, financial decentralisation coordinator

• Viktor Ventsel, financial monitoring expert

• Ihor Herasymenko, financial monitoring expert