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Voinyliv Hromada Demonstrates Efficient Use of Public Funds – IBSER Experts

07.11.2019

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The results of a financial management assessment of the Voinyliv hromada were presented during a meeting involving experts from the Institute for Budgetary and Socio-Economic Research (IBSER), in cooperation with Oksana Shvets, Local Finance Advisor at the Ivano-Frankivsk Local Government Development Center under the U-LEAD with Europe Programme.
The presentation was attended by Mariiana Masliak, Head of the hromada, along with staff from the Voinyliv local administration.
According to Maryna Shapoval, IBSER expert, the main goal of the project was to assess the level of administrative capacity in local financial management. This was achieved by analyzing the structure and procedures of the public financial management system in the selected hromadas and preparing recommendations for improvement.
“The core objective of the assessment is to support hromadas in improving the efficiency of managing their financial resources. The results will help local authorities better understand the requirements of the national public finance system, strengthen their capacity to manage local budgets, achieve strategic development goals, and become attractive places to live and do business,” noted Shapoval during the presentation in the Voinyliv hromada.
In turn, Oksana Shvets, Local Finance Advisor at the Ivano-Frankivsk LGDC, highlighted a key positive insight from the report: in 2018, expenditures for maintaining the executive bodies of Voinyliv hromada amounted to UAH 2.6 million, which represented 6.6% of the hromada’s total expenditures (UAH 39.2 million), or 36.1% of its own-source revenues (excluding transfers). By comparison, the Verkhnia hromada, with a larger population (10.6 thousand residents), allocated 52.2% of its own revenues to the same function.
Experts also noted the need to improve the revenue and expenditure planning process — particularly by enhancing the quality of forecasting for the medium term and aligning it with indicators provided by the Ministry of Finance of Ukraine. However, the report also praised the initial implementation of elements of medium-term budget planning in the drafting and execution of the local budget.