Lviv Regional Council Calls For Exclusion Of Reverse Subsidies From Budgets Of Territorial Communities
Lviv Regional Council Calls For Exclusion Of Reverse Subsidies From Budgets Of Territorial Communities

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Львовский облсовет призвал не изымать реверсную дотацию из бюджетов территориальных громад

Lviv Regional Council Calls for Exclusion of Reverse Subsidies from Budgets of Territorial Communities

Background

The Lviv Regional Council has made a plea to the central government, urging them to refrain from withdrawing reverse subsidies from the budgets of territorial communities. The appeal was made during a session of the council on February 23, 2023.

Reasons for the Appeal

  • Reverse subsidies are financial resources allocated by wealthier territorial communities to support the budgets of less affluent communities.
  • The council argues that the withdrawal of these subsidies would exacerbate economic disparities between different regions of Ukraine.

Impact of Subsidy Withdrawal

  • The removal of reverse subsidies could lead to a reduction in funding for essential services such as education, healthcare, and infrastructure in poorer communities.
  • This, in turn, could lead to a decline in the quality of life for residents in these areas.

Council's Proposal

The Lviv Regional Council proposes an alternative approach to address the issue:

  • Introduce a gradual reduction in reverse subsidies over time, allowing local governments to adjust.
  • Provide targeted support to less affluent communities to enhance their economic development and reduce the need for subsidies.

Conclusion

The Lviv Regional Council's appeal underscores the importance of addressing regional economic disparities in Ukraine. The council's proposal offers a balanced approach that aims to preserve essential services in poorer communities while promoting long-term economic growth.

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