Development Of Territorial Communities Research Articles

Strengthening the differentiation of the development of territorial communities as a risk of decentralization reform

The paper investigates the strengthening of intraregional differentiation of the development of territorial communities in Ukraine under the influence of decentralization reform and administrative-territorial reform. The types of asymmetries of territorial communities’ development are identified, among them: organizational, functional, social, budgetary, institutional. The conducted analysis of organizational asymmetries related to the formation of territorial communities has made it possible to identify significant gaps by number and area of ??the united territorial communities (UTCs). The capacity and the size of the population of community are interrelated, because the large communities have greater opportunities for business development due to the availability of labor resources and the ability to hold infrastructure objects and institutions of communal property. Instead, small-scale UTCs are usually financially feasible only if they have budget-generating companies. Unfortunately, the creation of a significant part of UTCs has taken place without taking into account the capacity requirements and contrary to the requirements of the methodology in order to obtain additional authority and resources. As a result of violations, there were problems of the possibility of further functioning of newly formed territorial communities. Among the UTCs created during the years of reform, there is a strong differentiation by level of their financial capacity. The ratio between the minimum and maximum values of own revenues of UTCs’ budgets per inhabitant (asymmetric scale) is about 40 times. The distribution of UTCs’ revenues depending on the population size are analyzed and it is found out that with each subsequent year of power decentralization reforms the territorial communities with higher financial capacity were formed. The lack of sufficient economic potential for UTCs’ development is confirmed to be the reason of low level of financial capacity of their overwhelming majority. Attention is drawn to the necessity of leveling the risk of increasing differentiation and the gap between UTCs and territories that have not gone through the process of unification. The measures for overcoming intraregional development differentiations are proposed, among which is the necessity to adhere to certain criteria concerning population size, share of transfers in income, share of managerial expenses while the formation of a UTC; maximum use of endogenous factors of territorial communities’ development; elimination of conflict situations between the center and the periphery when planning the development of the territory, etc.

Inter-municipal cooperation as a tool for increasing development inclusivity of the united territorial communes of Ukraine

The article presents the results of research on the problems of cooperation between territorial communities in the regions of Ukraine in the context of activation of inclusive development. The author’s conceptual vision of theoretical basis for the study of the inclusiveness of the development of territorial communities is presented. The processes of concluding of agreements on cooperation of communities in the regions of Ukraine from the moment of its beginning till today are analyzed. The problems and challenges of the development of inter-municipal cooperation of united territorial communities of regions are identified, and on this basis recommendations for improving the efficiency of development of inter-municipal cooperation at the basic level are formulated and substantiated. In particular, it is necessary to conduct a consistent state policy to stimulate the development of inter-municipal cooperation. The main directions of such a policy should be: development and adoption by regional authorities of all regions of Ukraine of financial support and incentives for cooperation of territorial communities as well as identification of potential territories in regions where cooperation could be developing; inclusion of mechanisms of inter-municipal cooperation in regional programs of socio-economic and cultural development of regions; explanatory work among representatives of local self-government bodies on the practical use of inter-municipal cooperation; organization of trainings, seminars, round tables and other events, dissemination of scientific literature, invitations of leading foreign and Ukrainian scholars, experts and analysts; dissemination of positive experience of cooperation, public support and promotion of best practices of cooperation, conducting public competitions of projects with winners and supporting the implementation of their experience in other communities as well as forming of networks for experience exchange on issues of development of inter-municipal cooperation between local governments from different regions of Ukraine; organization of informal effective control by the public for the promotion of projects, implementation of events and obtaining results. Consequently, the cooperation of territorial communities not only creates problems, but also creates opportunities for them to be solved by activating entrepreneurial activity, expanding the possibilities of self-government and civic creativity at the basic level. In this regard, inter-municipal cooperation should become an effective instrument for completing the decentralization reform in Ukraine.

Financial capacity of territorial communities in the context of evaluating the results of administrative and financial decentralization

The article investigates the theoretical foundations of the financial capacity of territorial communities. Parameters of estimation of territorial communities’ financial capacity in the context of achievement of administrative-financial decentralization results are characterized. The necessity of improvement of criteria of territorial communities’ financial capacity is determined in terms of identification of sources of personal income tax, number of operating enterprises in the territory of the territorial community and the number of payers. Attention is paid to the need of improvement of the methodological basis for calculating the taxability index by taking into account the size of the able-bodied population, the median distribution of income tax per capita weighted by the population, and inclusion in the calculation of Kyiv city budget. The peculiarities of formation and use of financial resources of the territorial communities of Lviv and Poltava regions are clarified. The scientific and methodological approach to the evaluation of the financial capacity of territorial communities is improved by determining the priority of their expenditures, the interdependence of their own revenues and transfers with the financing of public services at the level of territorial communities. The directions of increasing the efficiency of functioning of territorial communities are outlined. Based on the assessment of the interdependence of the amount of generated financial resources and the financing of public services at the level of the territorial communities of Poltava region, it is determined that the growth of own revenues should be ensured for their proper functioning, first of all, through efficient use of their own financial and economic potential; parity in the ratio of economic and social expenditures in order to generate long-term positive effects of socio-economic development of territorial communities; diversification of functional expenditures for comprehensive provision of public services at the level of territorial communities.

Концептуальні підходи до розвитку територіальних громад

Концептуальні підходи до розвитку територіальних громад

Improving the methods of budget funds management in decentralization conditions

Improving the methods of budget funds management in decentralization conditions

Formation of a sustainable management system Development of territorial communities

The article discusses the systemic obstacles to the sustainable development of territorial communities in the context of the historical transition from post-communist Ukrainian society, loaded with structures of the past social order, to the modern – in the process of modernizing the country. At the same time, special attention is focused on the factors blocking this development when reforming local self-government. These blockages include, above all, systemic nonlegal practices, the legitimacy of which is ensured not only by the inertia of the Soviet traditions of arbitrariness of the executive power, but also by certain laws of the post-Soviet period. This is especially noticeable in the field of public utilities and property management of territorial communities.

Conceptualization of the management of the processes of development of territorial communities

Considered the first principle of the formation of the phenomenon of development of society at the level of territorial communities. The results of the study of the expansion of the possibilities of development of territorial communities as the initial level of society existence in the conditions of modernization of local self-government through the introduction of a process approach are given. The proofs of the priority role of the processes of development of territories and the necessity of creating control systems for the development process as a fractal system of local self-government are given. It is noted that the management of development processes at the local level has not yet been brought to theoretical and methodological clarity; not provided theoretical characteristics, parameters and indicators of development processes; the technology of construction and flow is not simulated; There are no defined approaches to the evaluation of the results of processes in accordance with the vectors of community development, which testifies to the lack of effective management of the phenomenon of development, starting with the initial level of its occurrence. To solve the problem of intensification and increase of the development of territorial communities, a conceptual vision of process management, creation of a system of process management, which is considered as a fractal component of the system of local self-government is developed. It is represented by a conceptual apparatus for controlling processes proposed by the definition of the concepts of «process», «development process», the path of process management, the structure of the mechanism for managing the development process in the control circuit. Criteria and indicators of controllability of development of processes are determined by adhering to the allowable limits of their fluctuations. The given proposals deepen the theoretical and methodological basis of process management. The proposed algorithm for designing development processes at the first stage of their life cycle allows you to streamline the management of development processes, reduce the path and time for their implementation. Using the results of the research carried out will allow to focus efforts and formulate tasks for local self-government bodies for the implementation of development functions; establish the level of economic, social and resource efficiency of processes; deepen the social consolidation of power, residents and business entities; to carry out comprehensive support of the components in the chain of their interaction and implementation of results; to expand the space of intuitive, creative innovative thinking when making managerial decisions.

FINANCIAL ASPECTS OF THE PROGRAM OF INNOVATION DEVELOPMENT OF TERRITORIES IN CONDITIONS OF DECENTRALIZATION

The systemic crisis in the sphere of socio-economic development of territories is a consequence of the lack of a modern management mechanism for the development of territorial communities, which is based on the corresponding development programs.Despite the depth of studying of these scientific studies, the financial aspects of developing programs for the innovative development of territories in the conditions of financial independence of local government bodies require detailed consideration.Focused attention of researchers on the problems of management of territorial development. Attracted attention to the necessity of creating a mechanism for funding work on the development of relevant programs. It is determined that without such mechanism it is impossible to create and effectively implement territorial development programs at all levels of the administrative-territorial system of the country. All elements of the process of territorial development programming that are in need of financing are considered and which should be considered such a separate cost items of the corresponding estimate. On the basis of foreign experience (first of all the USA), it is proposed to create a nation-wide network of state information and consulting (advisory) services that would be the implementers and coordinators of work on the development of territorial development programs. It is determined that the financing of the development of territorial development programs should be carried out precisely through such services, which will ensure the efficiency and transparency of this process in conditions of financial decentralization and creation of united territorial communities in Ukraine. The proposed basic model of the process of programming the innovative development of joint territorial communities will ensure the effectiveness and transparency of this process in the context of financial decentralization.

SUSTAINABLE DEVELOPMENT OF ECONOMIC SYSTEMS: PROJECT-DECENTRALIZATION APPROACH

Topicality. The conceptual foundations of institutional support for the development of regional economic systems around the world are in state of constant transformation according to the impact of key topical trends. During the last two decades, the EU has adopted policy of active investment support for the development of local destinations, territorial centers of resource concentration and economic growth. The general rules of the investment activities conducting are combined with targeted measures of support for the implementation of strategically significant projects. The emphasis in the European regional policy has shifted towards the will of the investments attracting so much that, in fact, the whole policy of stimulating of regional sustainable development has turned into investment policy. An important task for the practical implementation of tools for a project, decentralization approach is the development of methodical tools for the preparation and execution of priority investment projects in the territorial communities in order to develop scientific and applied tools. Even the consideration of specific practical situations is urgent with the purpose of generation of new organizational and economic mechanisms that are to stimulate investment development of territories. Despite numerous theoretical and applied developments in the field of the socio-economic development stimulation of regions and territorial communities, the questions remain unanswered regarding the methodological bases for regulation of priority areas of economic activity of territorial communities and methodological approaches to selection, assessment of the degree of perspective and promotion of implementation of priority investment projects taking into account the specifics and the concentration of local resources. In more specific and applied aspects, the issue of project incentives for socio-economic development of communities is unresolved for the conditions of the national economy, on the basis of decentralization reform and taking into account the requirements of the ideology of sustainable development. Also, the description of various situations with the organization of socio-economic development of the territorial community in the conditions of decentralization, as an example of concrete projects, is still insufficiently considered.Aim and tasks. The purpose of the article is to formulate conceptual foundations, methodological approaches to the stimulation of the sustainable development of territorial communities in the conditions of decentralization, using the best European principles, practices and on the basis of specific situation description of the development and implementation of a long-term investment project for the territorial community. Consideration of the prospects and key aspects of the implementation of investment projects will be considered on the example of the planned association of the Lyman united territorial community of the Tatarbunarian district of the Odessa region.Research results. The conceptual, methodical principles of project support of investment activity in territorial communities are considered, algorithm of selection and support of investment project realization, which is a priority for the territorial community, is defined. There is considered, on the example of the Lyman United Territorial Community, a project on integrated recycling and rational waste management, the results of which the experts of the Institute for Market Problems and Economic & Ecological Research of the National Academy of Sciences of Ukraine with representatives of the future community testify to the demand for an individual, pro-project approach to the solution of territorial communities problems, on the basis of local features. Thus, in the considered example, taking into account the specifics of composition, volumes, garbage structure and taking into account the seasonal fluctuations in its formation, the original methods are proposed that are available for the community during the processing of waste products into useful products, which are in demand, first of all, in the domestic market segment of the same community. The economic, social, ecological effectiveness of this project is determined, prospects of viability and opportunities for project development are estimated.Conclusions. The experience of working with representatives of territorial communities in the field of implementation of scientific and applied developments to stimulate the socio-economic growth of economic systems on the basis of sustainable development suggests the need for methodological tools on planning sustainable development of territorial communities in the context of decentralization reform.The prospects of the proposed approach include the possibility of local administration and application of measures of economic and organizational assistance for the implementation of such unique projects by the very same territorial community. Support for promising investment projects can be carried out directly by the administrations of territorial communities on the basis of scientifically substantiated principles concerning economic, tax, organizational and other types of regulation.

Formation of budgets of local self governance in the system of social development of territorial communities

The subject of the study is theoretical and practical issues of the formation of budgets of local self-government in the system of social development of territorial communities. The purpose of the study is to reveal the priority tasks for improving the system of formation of budgets of local self-government. Research methods. The paper uses a set of scientific methods and approaches, including systematic, structural, comparative, factor methods, which allowed to realize the conceptual unity of the research. Results of work. The article reveals the role of local self-government budgets in the development of administrative-territorial units. A number of legislative and normative acts on regulation of the process of formation of budgets of local self-government are generalized. The priority tasks of the budget policy concerning support of territorial communities, strengthening of their tax capacity, increase of efficiency of coordination of activity of bodies of state power and local self-government are determined. The article is based on the establishment of an effective institutional framework for the formation of local self-government budgets in the system of social development of territorial communities. The field of application of results. System of state financial regulation, budgetary policy, budget system. Conclusions. The development of the budget system is possible by ensuring the sustainability of the formation of local government budgets in the system of social development of territorial communities, activating their innovation-investment component and strengthening the influence on the socio-economic development of administrative-territorial units. The importance of further enhancing the effectiveness and efficiency of the formation of local government budgets is conditioned by the need to increase the efficiency of the management of public financial resources in the conditions of their constraints, the development of a strategy for the development of local government budgets and the creation of institutional conditions for increasing their self-sufficiency, taking into account the cyclical nature of economic fluctuations and the impact of exogenous and endogenous factors in financially -budgetary environment. At this stage, the important task is to implement effective transformations of the system of forming local budgets by supporting voluntary associations of territorial communities, which necessitates the increase of efficiency and efficiency of administrative decisions of executive bodies and local governments in the field of strategic budget planning. It is advisable to improve the system of monitoring the socioeconomic efficiency of local government budget expenditures by using qualitative and quantitative indicators, introducing medium-term budget planning at the local level, adhering to the principle of transparency and accountability of local self-governance bodies to the public. Important tasks are improving the system of formation of local budgets taking into account application of modern financial-budget methods and tools; Creation of effective incentives to ensure the interest of local self-government bodies in the growth of their own income base and increase their level of responsibility for the use of budget resources; ensuring adequate revenues to local government budgets, and increasing the efficiency of the use of budget resources.

Комунальні банки в системі кредитування територіальних громад

У статті досліджено теоретичні основи вітчизняного та зарубіжного досвіду існування комунального кредиту та визначено роль комунальних банків у процесі фінансово-економічного розвитку територіальних громад. З’ясовано, що в Україні розвиток комунальних банків носить фрагментарний характер. Запропоновано визначення законом правової основи створення комунальних банків та залучення до вкладів тимчасово вільних коштів відповідних місцевих бюджетів, що сприятиме підвищенню рівня фінансової стійкості банку та самостійності територіальних громад.

ПОНЯТТЯ ТА СУТНІСТЬ ДУХОВНО-ЦІННІСНОГО РОЗВИТКУ ТЕРИТОРІАЛЬНИХ ГРОМАД У СІЛЬСЬКІЙ МІСЦЕВОСТІ

Problem setting. The state of the rural population in modern Ukraine is characterized by predominantly negative tendencies to suspend and prevent which is not possible by only one financial and economic measures. The problems of employment, the impairment of agricultural labor, the imbalance of the social standards of the village and the city have a deeper context, and therefore require the study of spiritual and value factors, as well as the possibility of their change in order to ensure sustainable rural development. Territorial community in rural areas acts as a means and at the same time an environment of transformative activity of citizens. It is the community in the conditions of decentralization of power that becomes the basic center for the formation and development of the spiritual values of society. However, the influence on the spiritual and value development of communities requires, first of all, to clarify the essence of this phenomenon, to clarify the corresponding conceptual-categorical apparatus. Recent research and publications analysis. The problem of systematization of Ukrainian national spiritual values is devoted to the works of M. Brilya, O. Vishnevsky, L. Misiv, G. Sitnik, P. Sitnik, Yu. Surmin and others [4; 10; 13; 16–17]. Importance are the development of domestic scientists, devoted to the problems of the formation and development of territorial communities as factors of the spiritual development of society [3; 6; 12]. The contributions of such scientists as O. Batanov [1], V. Yermolenko [7], V. Kozakov [9], M. Orlaty, I. Demchak [14; 15] and others. The paper objective – to define the concept and essence of spiritual and value development of territorial communities in rural areas. The paper main body. The basic vector of socio-cultural, economic and political development of the state depends to a great extent on the spirituality of the individual and society. Areas of research of spiritual and value development of Ukrainian society are analyzed. The functions, essence and manifestation of spiritual values are investigated. It is determined that the spiritual and value development of society and its components – territorial communities – can be considered as a combination of individual and social, which creates the preconditions for an integrated approach to the implementation of public management influence in this area. It is confirmed that the overcoming of the negative trends in the spiritual and value development of rural communities is impossible without the legal, material and financial support of social institutions that have an impact on the spiritual life of the villagers; Coordination, coherence and constructiveness in the interaction of subjects of public administration. Conclusions of the research. Ukrainian society needs today a value consolidation, an important condition for improving public policy in the area of spiritual and value development of rural communities. At the same time, the task of the state is not the unification of the value system, but the creation of conditions for various directions of spiritual development of both individuals and individual communities, including rural communities. It is this approach that will allow us to create conditions for identifying and further public support for a single national idea, a universally accepted ideology of state formation, and the formation of a holistic national consciousness.

РЕФОРМА ДЕЦЕНТРАЛІЗАЦІЇ В УКРАЇНІ: ДОСЯГНЕННЯ ТА ПРОБЛЕМИ ПОДАЛЬШОЇ РЕАЛІЗАЦІЇ

The article is devoted to the assessment of the state of implementation of the decentralization reform of public administration, aimed at ensuring, first of all, the financial and social self-sufficiency of the united territorial communities. The development of the regional economy, as well as the implementation of decentralization reform, are priority areas for the current government. During the period since the beginning of the reform, certain results have been achieved, in particular, the profitability of local budgets has increased significantly, and a number of regulations have been adopted in this area. However, despite all the positive results of the reform, the established organizational and economic mechanism for the development of rural territorial communities is not ideal and needs to be improved to ensure further development in the already formed rural united territorial communities. The purpose of the study is to highlight the main achievements that have been achieved since the implementation of decentralization reform, as well as to identify problematic issues of development of territorial communities. Particular attention is paid to proposals to improve public policy measures aimed at promoting community support and their capacity for future development. In writing the article used general scientific research methods such as analysis, synthesis and generalization, in particular, they were used in the division of communities into categories, determining the level of their refinement and profitability. The indicators of development of the united territorial communities are analyzed and the main sources of their financing are determined. The study pays special attention to intergovernmental transfers, in particular, it was possible to identify the regularity of their reduction from year to year, shows an increase in local budget revenues. The main problems of decentralization implementation in Ukraine, especially in rural areas, are studied. This research serves as both a practical and theoretical example of building the financial capacity of communities and will allow them to optimize the process of filling local budgets with sufficient financial resources needed for their proper functioning and development of rural areas, in particular. Guaranteeing financial capacity will allow the community to develop confidently in the future and accelerate the process of solving existing problems.

ПАРТНЕРСТВО ВЛАДИ, БІЗНЕСУ ТА ГРОМАДИ ЯК СКЛАДОВА ДІЄЗДАТНОСТІ ОБ'ЄДНАНИХ ТЕРИТОРІАЛЬНИХ ГРОМАД

The purpose of this article is a theoretical and methodological analysis of the development of the institution of partnership of power, business and community as a mechanism for increasing the capacity of the united territorial communities to resolving of local issues. The main сonclusions and results of the research are used in the educational process in the development and teaching of normative and special courses "Economics and Governance" and "Decentralization and Development of Territorial Communities" at the Tavrida National V. I. Vernadsky University for the students of the Master's program "Public Management and Administration". The concept of the capacity of the territorial community as an ability to perform the functions entrusted by the legislation directly to the community and local self-government authorities with regard to ensuring its life and development is defined. The configuration of the capacity of the territorial community has been substantiated, its components (internal and external capacity) have been clarified. The functioning of the institution of partnership between the authorities, the private sector and the community is considered as an important part of the capacity of territorial communities to decide local issues. It is proved that strengthening the local economy, the competitiveness of the territories, increasing investment and improving the quality of life requires understanding of the processes of local economic development and taking strategic action in a changing, and increasingly competitive, market economy. It has been determined that the role of the state as an important participant in partnership with local governments, with territorial communities and the private sector is becoming more and more significant. The main results of this article can be applied by public authorities, local government authorities, research centers and institutes, and higher educational institutions.

СТРАТЕГІЧНІ НАПРЯМИ РОЗВИТКУ ТЕРИТОРІАЛЬНИХ ГРОМАД ЛУГАНСЬКОЇ ОБЛАСТІ

The article contains a review of development strategies of territorial communities of Luhansk region, which published on the official websites of communities, in order to determine priorities in the strategic development of territorial communities. Development strategies of territorial communities of Luhansk region are developed in accordance with the Strategy for Sustainable Development of Ukraine until 2030, taking into account the principles of the Development Strategy of Luhansk region 2021-2027 and based on other laws and regulations of Ukraine. The author proved that the strategic directions of the territorial communities of Luhansk region reveal the peculiarities of the trajectory of development of cities, villages of Luhansk region in the long run in the course of the research. It was found out that development strategies of territorial communities of Luhansk region indicate strategic directions of the development of the socio-economic sphere, community infrastructure development, formation of a favorable business environment, improving the quality of life and human capital development, providing comfortable, safe and ecological living conditions, formation of a holistic humanitarian space of the community and satisfaction the needs of all categories of citizens, environmental protection, ensuring ecologically balanced and rational nature management, improving community services. The author identified the tasks, the implementations of which allow achieving the strategic goals of the territorial communities of Luhansk region. Strategic directions of development of territorial communities of Luhansk region are determined with the involvement of a wide range of community residents belonging to different age groups, social status, which allows achieving joint management decisions in the community. The strategic directions of development of territorial communities of Luhansk region are interconnected and coordinated with long-term strategies, plans and development programs at the state, regional and local levels, as well as community development to meet the needs of future generations taking into account the interests of future generations.

ОСНОВНІ НАПРЯМИ СОЦІАЛЬНО-ЕКОНОМІЧНОГО РОЗВИТКУ ТЕРИТОРІАЛЬНИХ ГРОМАД З ТОЧКИ ЗОРУ ЇХ МЕШКАНЦІВ

The article analyzes the main directions of socio-economic development of territorial communities from the point of view of their inhabitants. Conducting a sociological survey, determining the opinion of community residents on the problems and prospects of sustainable rural development, taking into account the influence of demographic, gender and socio-economic factors, is a modern method of public involvement in strategic planning, increasing initiative and improving dialogue between government and community. Based on the analysis of the data obtained from the sociological survey of the residents of the territorial community, it was found that the biggest problems that concern the residents are economic: high unemployment, low income. In second place were problems related to underdevelopment and unsatisfactory condition of infrastructure. In third place, respondents put the lack of conditions for self- realization and lack of activity and entrepreneurship of residents. Issues of the social plan (education, health care, trade and consumer services) have receded into the background. The assessment of the main resource of community development is dominated by factors related to exogenous factors - the availability of natural resources, progressive government, and only one in nine believes that the entrepreneurship of residents. When developing a strategy for socio-economic development of the community, the majority of respondents prefer projects of an economic nature over projects of socio-cultural orientation. Despite the fact that the majority of residents are pessimistic about the prospects of community development projects, the vast majority are ready to take personal part in the implementation of community development tasks. The most important areas of which are the development of the business environment, support for small and medium-sized businesses.

Механізми управління розвитком територіальних громад

Механізми управління розвитком територіальних громад

БЮДЖЕТНИЙ МЕНЕДЖМЕНТ В УМОВАХ ПЕРЕХОДУ ВІД СТРАТЕГІЧНОГО ДО СЕРЕДНЬОСТРОКОВОГО БЮДЖЕТНОГО ПЛАНУВАННЯ В ТЕРИТОРІАЛЬНИХ ГРОМАДАХ

To the problems of budget allocation management in the transition from strategic to medium-term budget planning in territorial communities are devoted in the paper. It is proved that in the conditions of modern transformational changes, which are currently taking place in Ukraine, more and more attention is paid to the problems of coordination and control of actions of the state, economic entities and citizens in order to achieve strategic goals in the socio-economic development of territorial communities, regions and countries. The need for such actions is related to the further progressive development of the budget system of Ukraine. Budget management is considered as one of the directions of financial management. Budget management acts as a mechanism for managing the distribution of budget funds at the level of local governments and the state as a whole. Based on the budget (state budget and local budgets), each financial plan solves the problem of organization and management of budget funds at a specific level of government. The basic principles of effective budget management are offered. The main goals and principles of budget planning are presented. In Ukraine, the community has developed key recommendations for the transition to its own medium-term budget planning. Local self-government bodies of territorial communities can already initiate and start the process of strategic budget planning to ensure a rapid transition to medium-term budget planning in territorial communities. These include: application and use of techniques and methods of strategic self-management; formation of normative base of strategic and program documents; improving the organizational structure of territorial communities` financial management; application of financial management methods in the transition to condominiums; integration of annual budgets into medium-term priorities.

INSTITUTIONAL FACTORS OF INVESTMENT ACTIVITIES IMPROVING IN THE NATIONAL ECONOMY UNDER THE TERMS OF DECENTRALIZATION

The article defines the factors of institutional support for the stimulating of investment activity in the Ukrainian economy under the influence of decentralization reform. The analyzed tendencies of falling volumes of foreign investments indicate poor performance of the applied measures of activation of investment processes in the national economy. The main causes of failure of investment activities are determined, among which the key role is played by the imperfection of the existing institutional support, because of its non-compliance with the real needs of the productive forces. It is established that in modern conditions when decentralization reform is being implemented, territorial communities become a key element in the implementation of investment activity regulators. It is stated that inconsistency of the informal and formal components of the institutional provision of investment development of territorial communities appears in the legislative mismatch with the real rules and conditions of the business entities, the excessive negative influence of informal institutions and the lack of subordinate acts that would ensure the implementation of strategic institutional tasks of investment development. The proposed conceptual idea of investment activity regulation is to join measures of institutional support of development on the national and basic levels. The legislative rules that establish general principles for the maintaining of investment activities and for the forming of united communities are to be supported with specific regulators that are to stimulate inter-communities cooperation and create appropriate business climate in basic territorial formations. The measures of the institutional support improving are proposed and their activity is to be realized on the levels of national economy and territorial communities with the help of tools of economic, informational, financial, marketing and other types of stimulation with the use of vertical and horizontal types of interaction of economic entities in the territorial communities. The main emphasis is made on measures of local incentives in territorial communities support, for instance: regional marketing tools are aimed on the creation of investment brand of the territory, informational tools consist of creation of local information bases and passports of investment abilities of the territories. The task for further research in this direction and for their practical implementation is the development of measures and mechanisms for the cooperation stimulating of community representatives in order to form their own ability to influence the state of the investment climate of the community.

INSTITUTIONAL FACTORS OF TAX PROVIDING INVESTMENT DEVELOPMENT OF TERRITORIAL COMMUNITIES

The article defines the factors of the institutional provision of effective use of the existing investment potential of territorial communities. The influence of the tax reform on the development of territorial communities is considered. The reform of local self-governance involves the transfer of the share of national taxes to local budgets, creates economic interest of communities in the development of new industries, of business support and of economic development for the country as a whole. It is shown that issues of tax competition and developmental balance are at the center of the attention of the European Commission and the whole European community, since the consequences of such concept are implemented in real life there are both positive and negative results. The results of the research tell that the formation of a supportive institutional environment should take place on the basis of an integrated combination of measures of rapid direct and indirect impact with the tools of organizational support and the formation of a business image. It is admitted that competition, privacy and sovereignty are the features of a free society, therefore, tax competition between countries should be noted. It is stated that the main instruments for the formation of a favorable institutional environment for the development of the region include legislative, organizational, economic and financial measures of a direct or indirect nature, the impact of which should promote the revitalization of socio-economic development of regions, as well as must ensure the sustainability of the stimulating effect in the form of investment viability of projects through the existing organizational approaches, rules, conditions of effective use of available resources of territories. The applied mechanisms for the formation of a favorable institutional environment for the economic development of the regions are proposed.