METHODICAL FEATURES OF FINANCIAL CAPABILITY ASSESSMENT OF THE UNITED TERRITORIAL COMMUNITIES BY THE EXAMPLE OF THE LYMAN DISTRICT OF THE ODESA REGION


  • D.I. Shevchenko
Keywords: financial capacity, local budget, administrative-territorial reform, community association, decentralization

Abstract

The article presents the methodical features of financial capability assessment of the united territorial communities by the example of the Lyman district of the Odesa region. The administrative-territorial reform has been lasting over 2 years, and during this period, 665 united territorial communities is created. In 614 of them the first elections has been designated already, 51 are still in line. 366 communities have first financial results, which can be estimated. The Financial Monitoring Unit of the Central Office of Reforms states in its reports that there is a pattern between population size and financial capability of united territorial community. and the lowest financial capacity indicators are typical for most small communities, except those in which budget-generating enterprises and powerful enterprises of the real sector of the economy are located. But correlation analysis shows that this is not the case. Published statistics shows that there are significant imbalances in the financial capability of emerged communities. In addition, one must understand that those, who are most proactive and developed has united, and they will ultimately receive more preferences from the state than those who will unite latter. The Ministry of Regional Development has developed a methodology for the formation of capable territorial communities, which plays recommended role and does not answer the question of how to implement the association in terms of economic and financial efficiency. The paper contains the analysis of 366 united territorial communities. The importance of taking into account financial capacity to define configurations of the united territorial communities is substantiated. The financial capacity of the three future territorial communities of the Liman district of the Odessa region is determined.

Author Biography

D.I. Shevchenko

Postgraduate

Institute Of Market Problems And Economic&Ecological Research of the National Academy Of Sciences Of Ukraine

Frantsuzskiy Boulevard, 29, Odessa, Ukraine

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Published
2017-12-19
How to Cite
Shevchenko, D. (2017). METHODICAL FEATURES OF FINANCIAL CAPABILITY ASSESSMENT OF THE UNITED TERRITORIAL COMMUNITIES BY THE EXAMPLE OF THE LYMAN DISTRICT OF THE ODESA REGION. Economic Innovations, 19(3(65), 162-169. https://doi.org/https://doi.org/10.31520/ei.2017.19.3(65).162-169