Problems of the formation of financial support of territorial communities of modern ukraine in the context of decentralization

Abstract

The article substantiates the relevance of the study of financial provision of territorial communities of modern Ukraine in the context of decentralization. In the presented work, the theoretical foundations were developed and practical recommendations were provided for improving the ways of increasing the efficiency of financial provision of territorial communities of Ukraine in the context of decentralization. From the standpoint of the challenges of the domestic present, such fundamental concepts as "decentralization" and its properties, types and directions are revealed; "financial decentralization"; "local community". The essence of financial decentralization is considered through the prism of three main determinants: decentralization in the expenditure sphere; decentralization in the revenue sphere; the right to procedural and organizational independence. The factors that hinder the provision of equal opportunities for the implementation of universal decentralization in general and financial decentralization in particular are identified. Based on the analysis of the revenue structure of local budgets for 2019-2022, it was found that despite the drastic changes in the budget and tax legislation, the main budget-forming tax at the local level remains the national tax - the tax on the income of individuals. In the context of decentralization, the situation in Ukraine after the full-scale Russian invasion is characterized. Three main categories of Ukrainian community territories are characterized, taking into account the aggressive actions of the Russian Federation. The consequences of the Russian invasion for the financial support of territorial communities and regions are outlined. Taking into account domestic realities, the need to intensify the search for alternative sources of funding for communities is substantiated, and their options are given. An algorithm of actions regarding the attraction of investments by territorial communities during the Russian-Ukrainian confrontation is proposed. The role and significance of financial decentralization in the post-war recovery period of Ukraine is determined. Prospective directions for further theoretical and practical research are outlined.