The decentralization reform has demonstrated impressive results already in the first two years. Amalgamated territorial communities (ATC) have collected between 5% and 122% more local taxes than before territorial consolidation, and have spent more on local infrastructure development (between 46% and 569% more). Simultaneously, the economies of scale are observed as after the amalgamation of communities, the share of local government expenditures decreased by 12% relative to total expenditures, and the share of remuneration costs decreased by 4%. Given these encouraging results, it is important to preserve the financial autonomy of ATCs and not to transfer part of their income to the enlarged Ukrainian rayons (counties).
OP-ED
Anna Harus, Oleg Nivievskyi: The effect of the decentralization reform
A woman and a girl look at the Neptune statue in Lviv on July 2, 2020.
