The experts of the Financial Monitoring Group of the Central Reform Office under MinRegion conducted an analysis of financial activity indicators of amalgamated hromadas. This year, experts changed the approach to assessing the implementation of local budget indicators of 665 AHs, which in the current year have direct interbudgetary relations with the state budget, reported Yanina Kazyuk, financial decentralisation coordinator.

According to the results of the 1^st half of 2018, the analysis was conducted in terms of four indicators that characterise financial aspects of the AH activity:

1. own revenues per capita (ratio of own revenues to the number of inhabitants of the corresponding AH);
2. dynamics of inflow of local taxes and fees in 2018 compared to 2017
3. level of budget subsidisation (ratio of the amount of the basic or reverse subsidy to the total amount of AH revenues with no account of subventions from the state budget);
4. share of expenditures on maintenance of the management apparatus in the financial resources of the AH (share of expenditures on the maintenance of the local self-government structure in the amount of the general fund's own revenues).

For the analysis, 665 AHs were grouped according to the population size criterion:

• Group 1 - AHs with a population of more than 15 thousand inhabitants;
• Group 2 - AHs with a population from 10 to 15 thousand inhabitants;
• Group 3 - AHs with a population from 5 to 10 thousand inhabitants;
• Group 4 - AHs with a population of less than 5 thousand inhabitants.

Materials were prepared as a result of local budget performance by 665 AHs over the 1^st half of 2018, on the basis of the data of the Ministry of Finance of Ukraine, State Treasury Service of Ukraine, State Statistical Service of Ukraine, by the Financial Monitoring Group experts of the Central Reform Office under MinRegion (with the support of the U-LEAD with Europe Programme and the SKL International project):

• Yanina Kazyuk, financial decentralisation coordinator
• Viktor Ventsel, financial monitoring expert
• Ihor Herasymchuk, financial monitoring expert

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