Decentralisation of authoritative and financial powers of the state in favour of local self-government is one of the most significant reforms since Ukrainian independence.

The main strategic task of modernising the system of state administration and territorial organisation of power being implemented today is the formation of an effective local self-government, creation of comfortable living conditions for citizens, provision of high-quality and accessible public services. Achieving these goals is impossible without the proper level of economic development of the respective territories, financial support and sufficient sources to fill local budgets.

It is the financial aspect that is one of the most important, which, to a large extent, affects the success of functioning of amalgamated hromadas. The presence of economically active business entities, sufficient number of skilled workers, developed industrial and social infrastructure – all these and plenty of other factors are the basis for a successful hromada development.

The result of the reform was an increased interest of local self-government bodies in raising local budget revenues, finding reserves for their filling, and improving the efficiency of administering taxes and fees. AHs show high and dynamic growth rates of their own revenues. In terms of use of funds, the attention is focused on the need to form the most optimal structure of budget expenditures, create an effective small in number administrative apparatus to carry out a constant analysis of budget expenditures and to prevent cases of their inefficient spending.

Indicators of implementation of local budgets reflect the overall socio-economic status of the respective territory and its sustainable development capacity. Sufficient resources in local budgets is a guarantee that hromada is able to provide better and more varied services to its residents, implement social and infrastructure projects, create conditions for business development and investment attraction, elaborate local development programmes, and fund other measures to comprehensively improve the living conditions of hromada residents.

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