A capable hromada is a hromada where the financial, infrastructure and personnel resources are sufficient to solve the issues of local importance, foreseen by the law in the hromada’s interest, by its local self-government bodies.

When forming a perspective amalgamated hromada, it is important to pre-calculate its financial capacity, that will allow to assess the benefits and risks of such an amalgamation, and identify the need to seek additional funds and streamline costs.

Yanina Kazyuk, financial decentralisation coordinator of the Central Reform Office under MinRegion, informed that in order to provide consultative and methodical assistance to local self-government employees, the Financial Monitoring Group experts of the Central Reform under MinRegion (with the support of the U-LEAD with Europe Programme and the SKL Project International Project) prepared Methodical recommendations to the procedure for calculating the financial capacity of a perspective AH (DOWNLOAD).

Such a calculation procedure will enable to simulate the budget of a perspective hromada, determine the need for an analysis of reserves to balance revenues and expenditures, and will also encourage consideration of the possibility of increasing the number of local councils for amalgamation into financially capable AHs.

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