Finances
The financial basis of local government consists of movable and immovable property, revenues, other funds, land, natural resources and common property, and is managed by district and regional councils. Territorial communities of villages, towns and cities may unite (on a contractual basis) objects of communal property and budget funds for implementation of joint projects, or to jointly finance (or maintain) communal enterprises, organizations and institutions. The state participates in the revenue of local budgets, financially supporting local self-government. Costs to local government arising from decisions of public authorities are compensated by the state.
Local governments can be legally-separate powers of the executive. The state finances the exercise of these powers in full from the state budget of Ukraine, or (by referring to the local budget, in the manner prescribed by law, certain national taxes) transfers to local governments appropriate objects of state property. Activities of local authorities aim to meet the social needs of citizens and (especially) to obtain essential services. Local budgets are the financial base of local governments; the resources accumulated in these budgets determine how effectively local authorities can carry out their mandate.
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