ФІНАНСОВА СПРОМОЖНІСТЬ МІСЦЕВИХ БЮДЖЕТІВ ЯК ПОТЕНЦІАЛ СТАЛОГО РОЗВИТКУ ТА ЗАБЕЗПЕЧЕННЯ ДОБРОБУТУ НАСЕЛЕННЯ ТЕРИТОРІЇ

Abstract

The article examines the processes of decentralization based on the analysis and evaluation of the financial capacity of local budgets in order to systematize the results of previous reforms of financial decentralization. The article deals with the following coefficients of financial capacity, which are grouped by areas: balance, financial capacity, budget efficiency and, based on the calculation of which, ultimately, it becomes possible to calculate the integrated indicator of financial capacity of local budgets. The analysis of indicators for assessing the financial capacity of local budgets in Ukraine was conducted in the dynamics for the period from 1995 to 2019. It is substantiated that the analysis of the financial capacity of local budgets, in order to identify trends that provoked the processes of decentralization and leveling the impact of force majeure, as distorting the results of the study, it is advisable to conduct before the crisis caused by the Covid-19 pandemic in 2020. Given the fact that Ukraine has historically developed regions with different levels of infrastructure, natural resources, minerals, population, etc., all this has led to significant regional imbalances in the financing of local budgets. Such features determine the feasibility of analyzing changes and trends in the financial capacity of local budgets in the regional and regional aspects. According to the results of the analysis, it is proved that in Ukraine there is a big problem of differentiation of own and fixed revenues of local budgets, the revenue base of budgets of the Eastern and Southern regions is much higher than in the Western regions of Ukraine. Another significant problem is the reduction of local budget independence by 2015, however, due to changes in the distribution and redistribution of local budget revenues, since 2016 the level of tax capacity and overall financial capacity of regional budgets in Ukraine has significantly improved. Emphasis is placed on the importance of studying the results of reforms to use their potential in the processes of economic reconstruction after military events and crises, reducing social tensions and creating the conditions for restoring and ensuring the well-being of the population.