On the problem of financial capacities of administrative districts of Lviv Oblast

Abstract

We emphasize the importance of complex human-geographical researches of the processes of transformation of the administrative-territorial division of Ukraine at the level of administrative districts to provide harmonic and balanced development of the Oblast. We revealed the human-geographical essence of the notion of region capacity. We analyzed the methods of distinguishing and type classification of regional statistical units, adopted in the EU countries, concluding about their adaptation in the Ukrainian realities taking into account the parameters of financial capacities, i.e. the abilities to use local revenues to fulfill local needs. The existing districts of Lviv Oblast were analyzed according to area of the territory, population, population density, level of urbanization, emphasizing their inequalities that puts them on different starting positions for their functioning. Based on the official statistics of the Ministry of Communities and Territories Development of Ukraine (Decentralization portal), we estimated averaged parameters of financial capacity of administrative districts of Lviv Oblast. In particular, we analyzed the share of local taxes in the revenue part of the budget of the general fund, revenue of the general fund per unit area; in the calculation per one person – revenue of the general fund, basic and reverse subsidies (i.e. those given to local governments from the state government and those provided by the local government to the state government for purpose of equalization of taxation capacity), revenue from excise, consolidated tax, land rent. We calculated variation coefficients of indicators of financial capacity of administrative districts, determined inequalities between the districts, especially regarding basic and reverse subsidies. By ranking, we type-classified the administrative districts according to financial capacity (the ability to use local resources to solve local problems): with high capacity (Lviv district), average capacity (Drohobych, Zolochiv, Stryi, Chervonohrad, Yavoriv districts), low capacity (Sambir district). In the context of administrative units, we developed diagrams of local taxes and charges (excise, consolidated tax, land rent). We came up with practical recommendations on how to improve the subregional administrative-territorial division of Lviv Oblast, in particular, we suggested designating Lviv metro- politan district within the Lviv agglomeration, including Lviv district. In the strategy of social-economic development of administrative districts, we proposed taking into account the results of analysis of financial capacity of their current state of functioning. We concluded that inequality of districts requires special, non-unified approaches so as to design programs of social-economic growth. We emphasize the necessity of correlating the National Statistics with the Statistics of EU countries regarding the regional development.