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The deficit of financial resources of local budgets in Lviv region is over UAH 250 million

Today, the budgets of territorial communities in the Lviv region still lack funds to pay salaries to employees of budgetary institutions and make payments for energy consumption.

This was reported by the Finance Department of the Lviv Regional State Administration.

“As of 1 May, the deficit of financial resources is more than UAH 250 million,” said Olga Bordun, deputy head of the budget management unit of the regional state administration’s finance department.

The amount of the local budget deficit of over UAH 616 million became known after the Department of Finance of the Regional State Administration examined the decisions on the approval of the relevant budgets for 2024. To ensure timely and full payment of wages and energy bills, local governments have approved monthly measures. The Department of Finance discussed ways to eliminate the deficit and the real possibility of balancing the respective budgets, taking into account the available internal reserves, with representatives of those communities with the most difficult situation with balancing budgets.

Thanks to the work done by local governments, as of 1 May this year, more than UAH 350 million of the deficit, or 57% of its total amount, was eliminated. However, the financial situation in the education sector remains tense in the budgets of 23 territorial communities, where the deficit reaches UAH 216 million, including UAH 172 million of educational subventions from the state budget and UAH 44 million from the local budget. Insignificant financial resources need to be found for culture (UAH 6 million), social protection (UAH 1.5 million), physical culture and sports (UAH 0.5 million), and energy (UAH 41 million).

“In order to solve the systemic problem of preventing a shortage of funds in local budgets in the future, it is necessary to increase the economic potential of communities and/or make unpopular but effective management decisions to ensure the main powers of territorial communities – the provision of quality educational, social and other budget services to the population,” the Finance Department added.

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