ENSURING FINANCIAL CAPABILITY OF THE UNITED TERRITORIAL SOCIETIES

Abstract

In the context of decentralization reform, the issue of ensuring the financial capacity of the united territorial communities (UTG) remains relevant and needs further study.The article examines the current state and sources of financial capacity of OTG of Ukraine in the current economic conditions. The relationship between the decentralization reform and the decentralization reform of the country’s budget system, which promotes the financial autonomy of the regions and the OTGs created in their territories, has been studied. The composition and structure of revenues and expenditures of local budgets of Ukraine for 2014—2018, which form the basis of financing OTG budgets, are analyzed. It was revealed that the main share in the structure of local budget revenues is made up of official transfers from the state budget. The conclusion is made on the gradual increase of the revenue side of local budgets during the reform period. The analysis of sources of financial resources of OTG and incomes and expenses on groups of OTG created in the territory of Ukraine for 2019 is revealed. Significant differentiation on incomes and expenses on groups of OTG is revealed that testifies to economic inequality in development of territories and resource maintenance and the quality of public services received by residents in the respective OTGs.The necessity of studying and implementing the positive experience of the EU countries in carrying out local self-government reforms is substantiated. It was emphasized that the creation of the State Fund for Regional Development in Ukraine provided an opportunity to minimize the corruption component in the distribution of funds from the state budget to local budgets on the basis of competitive selection of projects for funding. The insufficiency of budget funds for financial support of OTG is substantiated. It is proposed to expand the range of sources to ensure the financial capacity of OTG, adding to them the investment, credit, grant components and development of startup projects in the OTG.