FINANCIAL AND BUDGETARY CAPACITY OF TERRITORIAL COMMUNITIES
DOI:
https://doi.org/10.31470/2786-6246-2023-6-131-140Keywords:
decentralization, territorial community, budget, financial capacity, bankruptcy, income, expensesAbstract
The article is devoted to the study of topical issues of the formation of the financial and budgetary capacity of the territorial community. In the conditions of the transformation of the domestic economy, the instability of the economic situation and the financial system, this study acquires the most important importance. This is due to the fact that the level of its formation and use largely determines the stability of the regional economy and the quality of life of the population.
The purpose of the article is to clarify the theoretical foundations and substantiate practical recommendations regarding the rational distribution of financial flows between budgets of different levels, forming the basis of the ability of local self-government to finance the development of economic systems of territorial communities. Analyzing scientific sources, many efforts of scientists to fill the revenue part of the local budget were noted. However, insufficient attention is paid to the financial and budgetary capacity of territorial communities, which will ambiguously reflect on the post-war recovery of Ukraine and the involvement of external sources of its recovery/growth. It is appropriate to emphasize that the possible emergence of financially insolvent communities, which is not mentioned in the national legislation, is primarily related to the insufficiency of own resources for financial support of spending powers.
Measures regarding the development of the financial and budgetary capacity of territorial communities, the peculiarities of the application of instruments of inter-budgetary regulation and the rules of effective management of local debt, traditionally applied in foreign practice, acquire special significance in order to implement pre-trial settlement of financial problems of local self-government and ensure the financial and budgetary capacity of communities in the domestic reality. At the same time, it is important that they are studied in detail and adapted taking into account municipal practice and peculiarities of Ukrainian legislation.
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