Budget Monitoring of Capacity Indicators of United Territorial Communities of Dnipropetrovsk Region

Abstract

nment system. Especially in formation of local budgets, and creation of a new powerful local government entity United Territorial Communities (UTCs). Despite the positive effect from delegating to local authorities solving of regional development issues, improving governance and increasing in local government spending these are not supported by a corresponding increase in the financial resources sufficient to cover it. Purpose. The purpose of the research is to analyze theoretical and practical aspects of effectiveness of the costs managing of budgets of the UTCs in Dnipropetrovsk region by calculating the communities’ own incomes per capita. Results. The authors explained origin of financial resources of the UTCs under the condition of a new redistribution of public finances between the levels of the Government. Significant effects from the adoption of the main regulations of the mechanism of formation of strong territorial communities have been identified. These are expansion of power in the newly formed UTCs by transferring part of the powers to the local level, obtaining the right of the UTCs to conduct direct intergovernmental budgetary relations, differentiation of taxes and fees between various levels of budgets, increasing the share of official transfers in local budgets through the introduction of an infrastructure subvention directly aimed at the development of UTC, as well as, through funding from the State Regional Development Fund, an interest of international donors in financing newly created communities, an introduction of medical and educational reforms. Indicators and formulas that allow assessing the financial capacity of local UTCs’ budgets are considered in the study. The calculation of UTCs’ own income per one registered resident in Dnipropetrovsk region was fulfilled. Small territories and low populated sizes of UTC generally lack high financial capacity as the calculations and surveys corroborate. This is due to the lack of sufficient human resources. The level of subsidization of budgets of Dnipropetrovsk region is determined. The efficiency of expenses for management of budgets of UTCs of the Dnepropetrovsk region is investigated. The volume of expenses of capital character and degree of their influence on filling of budgets of UTCs of the Dnepropetrovsk region is considered. Conclusions. The analysis of the activity of UTCs of Dnipropetrovsk region was fulfilled according to such indicators as own income per one inhabitant of UTC, subsidy of UTCs’ budgets; specific weight for the maintenance of the management staff in the financial resources of UTCs; efficiency of capital expenditures, and their impact on the filling of the budget of UTCs. The above mentioned indicators reflect the level of effective or inefficient development of UTCs, and make it possible to determine a need to attract financial, investment, labor resources, and make management decisions on health, education, spatial planning, and improve the provision of administrative services and more. Thus the issue of full monitoring of financial capacity of UTCs in Ukraine remains unresolved and needs improvement and further study.