THE STATE OF THE IMPLEMENTATION OF LOCAL BUDGETS AND SOURCES OF THEIR FILLING IN THE CONDITIONS OF CRISIS AND MARTIAL LAW IN UKRAINE

Abstract

The work highlights the state of local budgets under martial law, as well as the sources and factors affecting the filling of local budgets in the conditions of crisis and martial law in Ukraine. The main approaches to receipts and balancing of local budgets in the conditions of decentralization are analyzed. It is emphasized that the fulfilment of the function of stabilization and income redistribution by the state becomes more complicated. Differences in the goals and priorities of state and local authorities reduce the effectiveness of the budget equalization policy. Economically powerful territories are interested in being independent to implement tax policy, fix taxes according to the territories of their collection, which deepens disparities in the development of regions. In today’s conditions of the war, business shutdowns, growing unemployment and population poverty, the powers of social protection and social security primarily rest with the state.The main indicators of revenues to local budgets are studied and it is noted that the overall balance of local budgets is not as critical as the situation with the state budget. This is because the state budget has more sources for «patching holes» than local budgets. Consequently, after 5 months, the consolidated budgets of all the regions are in surplus, and the average percentage of the implementation of the revenue part almost does not differ from the percentage for the similar period of previous years.