The article evaluates the financial capacity of the territorial communities in Lviv region from 2021 to 2024. The study aims to determine the level of economic sustainability among these communities, rank them according to an integral indicator of financial capacity, and identify groups of leaders as well as those with lower performance in order to develop recommendations for enhancing financial stability.

The methodology involves normalizing key financial indicators such as general fund revenues and expenditures per capita, expenditures for maintaining the management apparatus, the ratio of these expenditures to budget revenues, the share of wages, capital expenditures, expenditures on culture, physical culture and sports, and the share of local taxes in total budget revenues. These indicators are classified into stimulating or deterrent categories, followed by the calculation of an integral index of financial capacity.

Analysis of local budget revenue dynamics from 2021 to 2024 revealed an increase in financial resources across most regions, particularly in Lviv, which saw a 44.14% rise. This trend indicates a restoration of economic activity and highlights the effectiveness of decentralization reform, even amid the challenges posed by the pandemic and military conflict. The ranking of communities in Lviv region identified four groups: leaders that consistently maintain high rankings; communities that have improved their financial positions through effective resource utilization; those with fluctuating financial results due to temporary factors related to the redistribution of financial flows; and communities with low financial capacity that consistently rank at the bottom.

The leading communities include Lviv, Solonka, Slavske, and Pustomyty, among others, which have demonstrated the ability to accumulate significant financial resources and develop social infrastructure. Communities with low capacity must focus on activating local sources of income, attracting investments, and collaborating with the state to enhance economic sustainability.

The findings underscore the practical importance of an integrated approach for comprehensively assessing the financial capacity of communities and planning territorial development policies. Local governments can use these insights to formulate strategies aimed at improving financial stability and enhancing the economic competitiveness of their territories.