The Finance Department of the Lviv Regional State Administration has summed up the results of the first half of the year and analysed the financial capacity of local budgets by the main indicators of revenue and expenditure. On the basis of the combined key financial indicators, the best results were demonstrated by the Lviv community, as well as the Zymnovodiv, Solonka, Pustomyty, Davydiv, Obroshyne, Novyi Yarychiv, Pidberiztsi, Stryi and Morshyn communities. These budgets are characterised by a more balanced formation and more rational use of funds; in particular, the Lviv community has recorded the lowest share in the region of expenditure on maintaining the administrative apparatus relative to tax and fee revenues, and the highest expenditure on the implementation of youth policy.
According to the monitoring results, the highest tax capacity index was once again shown by the Sokilnyky community — 3.01. High index values are also recorded for the budgets of the Slavske community (2.58) and the Pidberiztsi community (2.11). At the same time, even territorial communities with a low tax capacity index, in particular Strilkiv (0.18), Biskovychi (0.26) and Pidkamin (0.26), are steadily increasing the share of revenues from local taxes and fees to 30–40%.
The largest increase in general fund revenues excluding transfers, compared with the first half of last year, was recorded in the budget of the Pidberiztsi community — 172.7%. High growth rates are also demonstrated by the Obroshyne community (150.8%) and the Dobrosyn-Maheriv community (144.0%). Particular attention is drawn to own revenues of budgetary institutions as an additional development resource formed through cooperation with international partners, attracting grants and expanding paid services. Per capita, the best indicators of own revenues are in the budgets of the Brody community — 3.3 thousand UAH, Solonka — 2.1 thousand UAH, and Lviv — 1.7 thousand UAH.
In communities with high revenues it is logical that expenditure is also increasing, including per capita. The leader by this indicator, as after the first quarter, remains the Sokilnyky community — more than 25 thousand UAH per resident. Significant per capita expenditure has also been recorded in the budgets of the Slavske (20.3 thousand UAH), Pidberiztsi (13.5 thousand UAH), Obroshyne (13.3 thousand UAH) and Pustomyty (13 thousand UAH) communities. In the Sokilnyky, Solonka, Davydiv, Slavske and Lviv communities, the largest amounts of funds per resident — from 2.6 thousand UAH to 7.3 thousand UAH — have been allocated to development expenditure: construction, reconstruction, modernisation of infrastructure and the implementation of investment projects.
Budgets of the Lviv, Slavske, Novyi Yarychiv, Radekhiv and Sokal communities are distinguished by a low share of spending on maintaining the administrative apparatus (from 5.4 to 10.6% of total expenditure). Spending on wages in the budgetary sector (from 25 to 51% of total expenditure) is the lowest in the Sokilnyky, Slavske, Lviv, Solonka and Morshyn communities, which, according to financial experts, makes it possible to direct more resources towards development programmes.
At the same time, the Finance Department draws attention to problem areas. In the budgets of eight territorial communities, more than 80% of the financial resource is spent on paying the wages of public sector employees. In 11 communities there remains a shortfall of funds for wage payments in the sectors of education, social protection and culture, amounting in total to more than 73 million UAH.
The Head of the Finance Department stressed that the monitoring results should become a tool for local authorities not only to assess the state of each budget, but also to identify internal reserves and adopt the successful practices of other communities for more effective management of financial resources.