05 March 2024
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Boundaries of the amalgamated hromada

are the external boundaries designating the jurisdiction of councils for territorial communities (hromadas) that amalgamated.

Budget equalisation of revenues

is a system of financial equalisation that stimulates communities (hromadas) (rayons, cities of oblast significance) and regions to earn more. Out of the budgets of territorial administrative unit, with an index of tax capacity over 1.1, 50% of the excess per capita is deducted. These deductions are directed to the state budget and are generally used to provide subsidies to the budgets of territorial administrative units with the tax capacity index of less than 0.9. However, at the same time, such territorial administrative units receive only 80% from the subsidy amount that is lacking to achieve a level of tax capacity of 0.9 per capita. It means that the wealthy and less successful territorial administrative units have an incentive to earn more.