Public administration in territorial communities: organizational and financial aspects

Abstract

Prospects for the development of united territorial communities in Ukraine and their financial support have been identified and investigated. Attention is drawn to the success of the process of budget decentralization, which largely depends on the financial capacity of local governments, which determines the performance of the functions entrusted to them. The general dynamics of the expenditures of the Consolidated Budget of Ukraine for the maintenance of public administration is analyzed. The efficiency of public administration and control over corruption in Ukraine is calculated. The expenditures per a unit of management of the united territorial communities of the Carpathian region and the united territorial communities of Central Ukraine (per capita and the share of expenditures on public administration in their own revenues) are examined. The analysis shows that the lowest share of public administration expenditures in own revenues (excluding transfers) is peculiar to communities with high financial capacity. United territorial communities with small territory and little population tend to have low financial capacity, and therefore high levels of share of public administration expenditures in their own revenues (excluding transfers). The exception is some small communities where the budget-forming companies are located. The paper proves that the united territorial communities of the Carpathian region in comparison with the united territorial communities of Central Ukraine are characterized by a high share of management expenditures compared to the average Ukrainian value. It is determined that the share of public administration expenditures in own revenues (excluding transfers) is lower with higher financial capacity of the budget, since such expenditures are relatively constant. The author suggests one of the best options for further development for communities, namely joining them with other territorial communities and creating a territorial community of larger size and population, optimizing the number of employees in public administration and the expenses for their maintenance.