Agrarian Economy 2018 Т. 11 № 3-4:13-19

Modern trends of forming financially fueled united territorial communities of the Lviv region in the context of the implementation a decentralization reform

Khirivskyi R., Ph.D., Аssociate рrofessor
ORCID ID: 0000-0002-7299-429X
Lviv National Agrarian University

https://doi.org/10.31734/agrarecon2018.03.013

ANNOTATION

The article considers the resource parameters of the community's capacity in terms of financial independence. In the course of the research, the theoretical analysis of indicators of community financial capacity was carried out. The distribution of the united territorial communities (UTC) of the Lviv region by population is carried out, during which four groups of communities, from 7 to 12 UTC are allocated. Significant unevenness in providing communities with labor resources has been revealed.

The growth of financial independence of communities from subsidies from the state budget with increasing scale of their functioning has been recorded. In the analysis of subsidy budget of the UTC of the Lviv region, it was found that in the most populated regions, the subsidy rate of the local budget is more than twice less than the similar indicator of the lowest UTC. At the same time, a direct pattern between the size of the communities on its financial independence is observed. Indeed, it is in the group of the largest UTS’s that all three communities in the oblast have been registered, which are completely independent of state budget subsidies.

The research has shown that communities with a population of more than 9 thousand people are characterized by the highest average specific indicators of their own revenues of UTC budgets of the region. It is estimated that in communities, starting with the population of 5 thousand people, an increase in population and an area of 1% was accompanied by an increase in own income of the population by 1,2%, which testifies to the higher potential of densely populated communities in shaping the business environment.

It is revealed that communities with a population of more than 9 thousand persons, which do not exceed the maximum parameters of acceptable transport accessibility to the administrative center, should be considered optimal in the formation of UTC.

The key factors of their ability are the proportionality of the population with the community's land resources; wider opportunities to develop a supportive business environment; increase in the territory of the community of business entities.

KEY WORDS

territorial community, financial capacity, decentralization, integration, local budget

FULL TEXT

LINK

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Article received 12.10.2018