The reform of local self-government provides for transfer of a substantial part of powers and revenue base to the lowest (basic) level of local self-government. The process of voluntary unification, which began in Ukraine in 2015, aims to create such a capable basic unit of local government.
In 2015, 15 newly created unified communities of Lviv region were deemed “capable”. A balanced budget is an important tool for the effective carrying out of duties by the local authorities.
The budgets of most unified communities of Lviv region are characterized by significant dependence on transfers from the state budget, and by the fact that costs of local administration and social infrastructure accounted for about 2/3 of all current expenditures. In such circumstances, the development projects, necessary to provide quality services in the future, usually can only be implemented through the National Fund for Regional Development and the state subsidies allocated for infrastructure development of unified communities.
The main objective of unified communities of Lviv region in 2016 is to increase their income and improve the efficiency of current expenditures by optimizing and modernizing the network of social infrastructure.