Local Budgets Research Articles

Роль региональных налогов, формируемых в горнодобывающем секторе, в экономике ресурсных регионов России

The balanced distribution of the natural capital exploitation income makes one of the key problems of the contemporary environmental economics. Efforts made by many researchers are aimed at finding the solutions to the issues of the equitable distribution of the natural rent, socio-economic development of the mining areas and the mineral resources processing. As a rule, most of the resource regions do not show the accelerated economic growth, acquiring in return environmental problems, regional budget imbalance and increase in social tension. The article considers tax revenues into the local budgets, shows the structure of different types of taxes, estimates the dynamics of payments and the degree of influence of extractive industries on the regional incomes according to the type of the raw material extracted. On the example of the regional taxes structure, such as income and property taxes, it is shown that the official statistics allows to see the general trends in collection and distribution of the tax revenues only, while the intercompany distribution of the financial flows and reporting made by the big extractive companies do not allow to estimate the real contribution of mining enterprises into the regional budgets. In order to strengthen the budgetary system of the resource regions, it is necessary to increase transparency of contracts between the companies and the territories, which makes the key element that promotes trust between society and business.

Funding Health Promotion Activities to Reduce Avoidable Hospital Admissions in Frail Older Adults (HomeHealth): Further Challenges to the "Cost-Effective but Unaffordable" Paradox.

Health promotion initiatives are often promoted as being worth the investment given future cash-savings. This paper uses the findings of HomeHealth, a health promotion service for older adults with mild frailty, to examine how economic evaluation relates to local decision making in England. The HomeHealth trial randomised 388 participants aged 65+ years with mild frailty to receive HomeHealth (195 participants) or treatment as usual (193 participants). Health and social care resource use and carer time were self-completed at baseline, 6 months and 12 months. Primary and secondary healthcare resource use and medications were collected from patient files at 12 months post recruitment, covering the past 18 months. Stakeholders including commissioners were consulted on the results of the trial and budget impact. Participants allocated to HomeHealth had a significant reduction in emergency hospital admissions at 12 months (incident rate ratio (IRR) 0.65; 95% confidence interval (CI) 0.45-0.92) and unpaid carer hours at 6 months (- 16 h (95% CI - 18 to - 14 h) or - £360 (95% CI - 369 to - 351) per patient). Although the intervention is cost saving overall due to fewer emergency admissions, at a cost of £457 per patient commissioners do not have the budget to fund it. This case study illustrates the problem with using standard economic evaluation methods to argue for implementation of health promotion initiatives in publicly financed healthcare systems. Although HomeHealth resulted in reduced emergency admissions and may be cost saving to the system as a whole, it is not locally cash releasing. Health promotion initiatives are unlikely to be funded from local budgets without significant system-wide changes.

О МЕРАХ ПООЩРЕНИЯ МУНИЦИПАЛЬНЫХ ОБРАЗОВАНИЙ

Introduction: the article attempts to analyze the measures used to encourage municipalities as a necessary condition for the effective functioning of local self-government. The non-material (motivating factor) and material measures of encouragement of municipalities aimed at their sustainable development are investigated. Materials and Methods: the author considers a set of norms of Constitutional, Administrative and Budgetary Law that form public incentive legal relations, presents scientific and theoretical positions of scientists and judicial practice on these issues; general scientific methods were used, as well as special ones: structural-functional, formal-legal were used. Results: the analysis of scientific literature and legislation regulating public-award relations allowed us to identify two groups of incentive measures: material and non-material. Non–material incentive measures are measures based on the recognition of the merits of a local community acting on the basis of a collective consciousness formed by the common interests and values of the population of a particular territory. The main forms of non-material incentives are awards and honorary titles, both at the federal and regional levels. Material incentives for municipalities are funds received by the local budget through inter–budgetary transfers from the federal budget or the budget of a constituent entity of the Russian Federation. Discussion and Conclusions: the lack of legislation in a significant part of the subjects of the Russian Federation that would provide for awarding municipalities was negatively assessed, since the local community should receive a positive assessment of its merits. The State's award policy and relevant regulatory legal acts should provide for the awarding of municipalities with state awards and honorary titles. It is proposed to introduce the concept of a budget grant provided to a municipality. Keywords: Constitution of the Russian Federation; public authority; local self-government; encouragement; incentive measures; motivation

Conflict Management Towards Creating an Open Community: Integrated Models for Measuring and Scenario Forecasting the Level of Social Stress in Local Communities

The article addresses the pressing issue of increasing social tension and localized conflicts in Ukrainian municipalities during 2020–2024, encompassing both the pre-war phase and the period of full-scale war. Special attention is given to modeling the trajectories of social dynamics, including a potential post-war recovery scenario. The study’s primary objective is to construct a Conflict Index and develop a stochastic model of state transitions within the social environment to assess the conflict potential of local communities. The research focuses on urban territorial communities in Ukraine, with the Kyiv municipal community selected for in-depth case analysis ‒ given its role as the capital with the highest concentration of political activity, budgetary resources, and social challenges, as well as the availability of detailed statistical data for the period 2020–2024. The data sources include official publications from the State Statistics Service of Ukraine, analytical reports, and publicly available local budgets. The methodological framework combines cluster analysis, transition probability matrix construction, and Monte Carlo simulation modeling. The modeling results revealed the most probable trajectories of social developments, notably the transition from a state of “normalcy” to “social tension” (0.48), and from “escalation” to “crisis” (0.67). A high probability of returning to a normal state from the “recovery” phase (0.80) was also confirmed. Conflict Index scores were calculated for ten key communities, followed by clustering based on the level of social risk. The findings may be utilized by national public authorities, analytical think tanks, and local governments for purposes of strategic planning, conflict monitoring, and response.

Analysis of the Influence of Local Government Financial Performance on Economic Growth with Capital Expenditure Allocation as an Intervening Variable in the Regency/City of Sumatera Utara Province

This study aims to examine the effect of financial performance on economic growth with capital expenditure allocation as an intervening variable in Regency/City Governments in Sumatra Utara Province. The study sample consisted of 33 regencies/cities in Sumatra Utara Province. The financial performance variables measured were efficiency, effectiveness, independence, and fiscal decentralization. Data were analyzed using path analysis using the EViews program based on secondary data in the form of panel data sourced from Regency/City Local Government Budget data in Sumatra Utara Province. The results of the study indicate that efficiency has a positive and significant effect on economic growth, while effectiveness has a positive and significant effect on economic growth. The independence variable has a negative and insignificant effect on economic growth, and the fiscal decentralization variable has a positive and insignificant effect on economic growth. For the indirect effect, the capital expenditure allocation variable only mediates the efficiency variable on economic growth. In contrast, the effectiveness, independence, and fiscal decentralization variables cannot be mediated by capital expenditure allocation on economic growth. Keywords: efficiency, effectiveness, independence, fiscal decentralization, capital expenditure allocation, and economic growth.

PUBLIC SPENDING AND SUSTAINABLE ECONOMIC GROWTH IN TIMES OF CRISIS: EMPIRICAL TESTING OF DEVELOPED COUNTRIES

Improving planning and increasing the efficiency of public expenditures, as well as determining their optimal structure, are crucial tasks for a country's development. However, these tasks become significantly more complex under conditions of uncertainty and are particularly relevant during economic crises. This study examines the characteristics and trends of the impact of public spending on economic growth during crisis periods in developed countries. A systematic methodological approach is applied in combination with statistical research methods. Several authorial hypotheses have been confirmed: according to Wagner's law, an increase in public expenditures should be accompanied by GDP growth; the socio-economic development of a country is determined not only by the volume but also by the efficiency of public financial resource utilization (in line with Keynes' hypothesis); the level of GDP redistribution through the state budget is sensitive to crises; local budgets are less affected by financial and economic crises; and in the face of external threats, especially when a country is involved in a military conflict, the role of the state increases. The study results provide several managerial recommendations aimed at improving the public investment system for local development.

LEGAL MECHANISMS OF PUBLIC PARTICIPATION IN DECISION-MAKING IN THE FIELD OF LAND RESOURCES USE

The article examines mechanisms for public participation in decision-making regarding the use of land resources in Kazakhstan. The research is conducted as part of the program-targeted financing project of the Science Committee of the Ministry of Science and Higher Education of the Republic of Kazakhstan. The main focus is on local self-governance, participatory budgets, and public oversight. Local self-governance in Kazakhstan is based on the Constitution and ensures citizens' rights to independently address local matters. However, the realization of this right is often limited by regulatory barriers and dependence on decisions made by governmental authorities. This hinders citizens' participation in governance and reduces the effectiveness of local self-governance. The participatory budget (PB) has become an important tool that allows residents to directly influence the allocation of local budget funds. The practice of PB, especially in large cities such as Almaty, demonstrates its potential for improving the urban environment. However, expanding this practice requires larger investments and the inclusion of a broader range of projects that can be proposed by citizens. Public oversight serves as a counterbalance to governmental activities, encouraging transparency and accountability. The 2023 Law "On Public Oversight" establishes the legal framework for citizens' participation in monitoring the actions of governmental bodies. A successful example of public oversight is the "Zher Amanaty" project, aimed at reclaiming unused agricultural lands. The article emphasizes the need to increase citizen engagement and trust in government bodies, which would make land resource management more transparent and effective. Improving the legal framework, developing local self-governance institutions, and adapting international experience can help address existing issues and improve the quality of land resource management in Kazakhstan.

The other side of chaos COVID-19, federal spending, and local government volatility

ABSTRACT We examine the influence of COVID-19 and federal responses to it on budget dynamics of local governments in the US. While it is commonly and implicitly assumed that budgetary difficulty primarily results from deep budget cuts, managing large increases also raises the uncertainty local leaders face. Situated in the logic underpinning Punctuated Equilibrium Theory, we assess the degree of volatility and expansion in local budgets in the wake of the federal response to the pandemic. We use an original dataset of 21,918 changes in local budgets in the state of West Virginia, spanning a decade of spending across 55 counties and 162 sub-categories. Standard measures of change indicate that federal aid provided stability to local budgets, yet new methods we implement reveal more frequent and drastic shifts in spending as well as a positive shift in the value of changes. When assessing counties individually, we report substantial differences in volatility and expansion of budgets between the pre – and post-COVID periods that we show are associated with economic distress. Our findings have implications for the future of local-level budget and expenditure studies and the empirical research on the complexity of policy change in the US, Europe, and elsewhere.

Tax reform – 2025: budget implications

The tax reform of 2025 has become one of the largest changes in recent decades. The groundbreaking changes in tax legislation adopted as part of the tax reform raise many questions among representatives of small and medium-sized businesses. This explains the relevance of the research topic. The purpose of the study is to analyze the most important changes introduced in business taxation in connection with the announced tax reform. The objectives of the study are to identify both the positive and negative sides of the tax reform based on the study of changes in tax legislation, including issues of taxation of small businesses in connection with applying the simplified taxation system, and to assess the degree of their impact on the budgets of the budgetary system of the Russian Federation. Materials and methods. The information base of the study was data from reports of the Federal Tax Service of the Russian Federation on the accrual and receipt of taxes and fees to the budgets of the country's budgetary system, reports on the tax base and the structure of tax accruals for which changes are envisaged, and federal laws that amended the Tax Code of the Russian Federation. The study was conducted using research methods generally accepted in economics: analysis and synthesis, generalization, comparison, etc. Results. The main directions of tax reform – 2025 are examined. A comparative assessment of tax revenues in 2020 and 2023 is made. The following trends were identified: tax changes are aimed at increasing the tax burden on taxpayers and budget revenues of the budgetary system of the Russian Federation, primarily the federal budget. Conclusions. Tax changes are mainly of a fiscal nature, and the tax burden will increase not only on businesses, but also on individuals (both directly with the introduction of a progressive scale of personal income tax, and indirectly through an increase in the tax burden on businesses and subsequent transfer to end users), which will eventually result in an increase in budget receipts. Due to the tax reform, the burden on businesses will increase, budget revenues will increase, but the situation of regional and local budgets will not improve.

HONORING WAR VETERANS AS A COMPONENT OF THE IMPLEMENTATION OF THE SOCIO-ECONOMIC FUNCTION OF THE STATE: ADMINISTRATIVE-LEGAL ASPECT

The article examines the issue of honoring war veterans as an important element of the implementation of the socio-economic function of the state in the conditions of a special period. The authors analyse the administrative-legal mechanisms that ensure the preservation of historical memory, the dignified treatment of the defenders of the state, and the guarantees of their social protection. The emphasis is on the institutional support of the state policy of honoring veterans through the activities of central and local executive bodies, local self-government bodies, as well as interaction with public associations. The functions of the state in the organisation of commemorative events, the provision of ritual services, the support of the families of fallen soldiers, the creation of memorial objects and the establishment of symbolic spaces are revealed. The challenges of implementing effective administrative procedures in this area are outlined, including fragmentation of the regulatory field, limited funding and a lack of systematicity. Proposed ways of improving administrative and legal regulation aim to strengthen state support for veterans and their social integration, as well as strengthening national identity in conditions of martial law and post-war reconstruction. The subject of the article is the administrative and legal mechanisms for implementing the socio-economic functions of the state in conditions of a special period. Research methodology. Various methods are used when studying the honouring of war veterans as an important element of the state's socio-economic function in special circumstances. These methods allow for a comprehensive consideration of the legal, social, economic and managerial aspects of this area, and include: the method of dialectical materialism; the method of abstraction; the methods of analysis and synthesis; the functional method; the method of system analysis; the synergistic method; the comparative law method; the method of interpretation and hermeneutics; the dogmatic method; and the statistical method. The purpose of the article is to reveal the principles of honoring war veterans as an important element of the implementation of the socio-economic function of the state in the conditions of a special period. Conclusions. The act of honouring war veterans within the context of a designated period represents a pivotal facet in the execution of the socio-economic function of the state. This phenomenon possesses a multifaceted significance, encompassing moral, legal and social dimensions. Firstly, it is an expression of profound respect for the military duty, sacrifice and courage demonstrated by those who defended the state. Secondly, commemoration possesses a practical dimension, as it is closely related to the system of social protection of war veterans. The present study sets out to explore the shortcomings of honouring war veterans as a means of implementing the socio-economic function of the state during a special period. The study identifies five key shortcomings: first, the formality of approaches; second, the fragmentation of legal regulation; third, insufficient funding; fourth, uneven regional provision; and fifth, weak integration into modern social processes. In order to solve these problems, the authors propose the following: 1) to regulate commemoration as an element of social policy at the legislative level. Including a separate article or even a section in the Law of Ukraine "On Status of War Veterans and Guarantees of Their Social Protection" on the commemoration policy, with clear indicators of its implementation; 2) to introduce targeted funding programmes for commemorative events, including commemoration, support for the families of the victims, and memorial initiatives, at the level of the state and local budgets; 3) to integrate the commemoration with other events; 4) to develop partnerships with the public sector; 5) c to create a unified national Register of Heroes, interactive maps and applications that would promote the stories of veterans and strengthen the nation's identity.

Цільове бюджетне фінансування в Україні: ефективність, інституційні виклики та шляхи підвищення результативності

The main mechanisms of targeted financing in Ukraine are revealed, and their role in ensuring socio-economic development under martial law is defined. The article analyzes the effectiveness of the implementation of active state targeted programs up to 2023, particularly in terms of the fulfillment of planned funding from both the state and local budgets, as well as the achievement of performance indicators. The key shortcomings in the system of program design, financing, and effectiveness evaluation are identified. The paper proposes ways to improve the effectiveness of program implementation, including through decentralization, enhanced monitoring, and independent auditing. Particular emphasis is placed on the importance of adapting programs to the challenges of war and national recovery, as well as the expediency of long-term programs in periods of limited public financial resources.

АНАЛИЗ И ОЦЕНКА ДОХОДОВ МЕСТНОГО БЮДЖЕТА (НА ПРИМЕРЕ АНГАРСКОГО ГОРОДСКОГО ОКРУГА)

The article analyzes the revenue side of the budget of the Angarsk urban district, one of the municipalities of the Irkutsk region. During the analysis and assessment of budget revenues in terms of tax, non-tax revenues and gratuitous transfers, the prevalence of the share of financial assistance to the local budget was revealed with the dynamics of their reduction in the planning period. Positive dy-namics in terms of increasing own revenue sources was noted, which affected the strengthening of the level of independence of the budget, which can be called normal in terms of stability. At the same time, the share of financial assistance to the budget remains high

SOME THEORETICAL ISSUES ON RESOURCE MOBILIZATION MANAGEMENT FOR EARLY CHILDHOOD EDUCATION DEVELOPMENT IN THE CURRENT CONTEXT

To implement the Education Development Strategy to 2030, with a vision to 2045, early childhood education requires substantial investment in human resources, infrastructure, and financial resources. In addition to funding from the state and local budgets, mobilizing extra-budgetary resources plays a crucial role in ensuring the sustainable development of early childhood education. This study analyzes the theoretical foundations of resource mobilization management for early childhood education, clarifying the key aspects of management through four stages: (1) Planning resource mobilization; (2) Organizing implementation; (3) Directing execution; and (4) Evaluating, providing feedback, and improving the mobilization process. The findings contribute to providing both scientific and practical bases for enhancing the efficiency of resource mobilization, thereby meeting the developmental demands of early childhood education in the current context. Keywords: Resource mobilization management; early childhood education development; education development strategy

DEVELOPMENT OF PROPOSALS FOR IMPROVING STATE POLICY IN THE FIELD OF ENERGY EFFICIENCY OF THE HOUSING STOCK

Problem Statement. Energy efficiency of the housing stock is one of the most important components of sustainable development in Ukraine, especially in the context of rising energy resource tariffs and global environmental challenges. State policy in this area aims to reduce energy costs, improve housing quality, and enhance citizens’ living conditions. The relevance of the topic is determined by the need to develop comprehensive measures that ensure the effective use of energy resources, adapt buildings to new technologies, and implement innovative solutions. The main directions for improving state policy include the formation of investment programs for the modernization of the housing stock, the introduction of a financing system for energy-efficient projects through state and local budgets, as well as the involvement of international financial institutions. Additionally, it is important to ensure informational and educational campaigns for the population regarding the benefits of energy efficiency, as well as to develop mechanisms to encourage businesses and citizens to implement energy-efficient technologies. The introduction of new construction standards that take into account environmental and energy-efficient norms will become a guarantee of sustainable development for the housing stock. The purpose of this article is to analyze existing problems in the field of energy efficiency of the housing stock in Ukraine and propose measures that can enhance the effectiveness of state policy in this area. Conclusion. State policy in the field of energy efficiency of the housing stock is a key factor influencing the stability and development of the energy sector in Ukraine. The development and implementation of comprehensive measures aimed at increasing energy efficiency, supporting investments, and promoting ecological norms will create conditions for reducing energy costs for the population and improving housing quality. Improving financing mechanisms and cooperating with international organizations will ensure the sustainable development of the construction sector and adapt the housing stock to modern energy efficiency requirements.

Estimation of Microbial Abundances and Their Respiration Rates in a Specialized Coastal Water Body

Microbial communities in an ecosystem are crucial for having active participation in shaping the biological and biochemical cycles of this ecosystem. In this study, we estimated marine bacterial counts and the microbial respiration rates in seawater samples collected from Gorliz beach, Bilbao, Spain, using DAPI (4′,6-diamidino-2-phenylindole)-based epifluorescence microscopy and optical oxygen sensors. The microbial density was 1.6 × 10⁶ cells/mL (± 47,948 SE; Standard Error), which is consistent with values typically reported for temperate coastal regions. In addition, microbial respiration rate based on the oxygen consumption was around a mean of 0.0127 μmol O₂/L/h (± 0.0026 SE) over 14 hours of incubation in the dark. These findings suggested an abundant and meaningful active microbial community in this coastal ecosystem, highlighting the critical role of microorganisms in regulating coastal ecosystem dynamics, local oxygen budget, and carbon biogeo-cycling. Hence, this study underlines the need for sequential, spatial, and temporal investigations of microbial communities and their biochemical processes in response to environmental changes and anthropogenic activities.

Post-Regulatory Performance: Does Indonesia’s New Fiscal Law Strengthen Local Government Revenue?

This study aims to analyze the effectiveness and contribution of local taxes and service charges to the locally generated revenue (PAD) of Palembang City, Ogan Ilir Regency, and Banyuasin Regency following the enactment of Law No. 1 of 2022 on Fiscal Relations between the Central and Regional Governments (UU HKPD). Background Problems: Despite their strategic role in fiscal decentralization, many regions in Indonesia, including South Sumatra, remain highly dependent on central transfers. Empirical studies on the actual impact of the new law at the local level are still limited. Research Methods: This study employs a descriptive quantitative method using 2024 data consisting of local tax revenue realization reports and regional budget revenue and expenditure realization reports obtained from the Regional Revenue Agency and the Regional Financial and Asset Management Agency of each respective region. Finding/Results: The study finds local taxes in Palembang City very effective and service charges effective; in Ogan Ilir, taxes are moderately effective but charges ineffective; Banyuasin shows effectiveness in both. However, their contribution to PAD remains minimal across all regions. Conclusion: Adjusting tax, retribution, and PAD targets based on the previous year’s realization is essential. Ogan Ilir and Banyuasin Regencies must align with regulatory developments to improve transparency and accountability, while Palembang City should optimize high-potential local tax collection and enhance retribution management through inter-agency supervision and coordination.

Priority Areas for Strengthening the Tax Capacity of Municipalities in Russia

The purpose of the study is to identify key determinants of local budgets’ tax revenues formation and substantiate priority areas and tools for strengthening the tax potential of municipalities. Based on the methods of regression analysis using cross section data for 62 municipalities of Russia, factors with a high degree of significance were identified: population, average annual number of employees of organizations, number of organizations; and a factor with an average level of significance: the average monthly accrued salary of employees of the organization. The hypothesis of the prevailing influence of quantitative factors on the formation of tax revenues of municipalities has been confirmed. The calculation of the coefficient of variation (41%) demonstrated the heterogeneity of the municipalities in terms of tax income provision. Only a few municipalities have a relatively high level of tax revenues, which demonstrates significant losses in their formation. The analysis showed that in 2023, the maximum value of the tax independence coefficient of local budgets was 0.41, the minimum– 0.12. To assess the tax potential, a modified method of marginal tax revenues was developed in the regionally determined conditions of the functioning of municipalities. It was revealed that the total tax potential of municipalities is 1.83 times higher than the actual tax revenues, that is, the tax potential of municipalities is used only by 54.6%. As the main measures to increase tax revenues, it is proposed: strengthening tax administration of areas of activity with increased social and environmental risks, creating new institutions for improving tax processes.

The Influence of Taxpayer Awareness, Tax Knowledge, Service Quality, Tax Sanctions, and Tax Audits on Tax Compliance of Restaurant Taxpayers

Local Revenue (PAD) or Local Own-Source Revenue (LOSR) is an important component in the local government budget, with Specific Goods and Services Tax (PBJT) as one of the main sources. In the Special Capital region of Jakarta, PBJT on Food and Beverages (previously known as Restaurant Tax) has become the most significant sector in contributing to PAD. However, taxpayer compliance in this sector remains a challenge, as evidenced by restaurant tax arrears reaching IDR 141.3 billion in 2023. This study aims to analyze the influence of taxpayer awareness, tax knowledge, service quality, tax sanctions, and tax audits on taxpayer compliance in the restaurant sector in Central Jakarta. The research method used is quantitative with a survey approach. Data were collected through questionnaires distributed to restaurant taxpayers and analyzed using the Partial Least Square Structural Equation Modeling (PLS SEM). Results of the study indicate that sanctions and service quality have a positive and significant effect on taxpayer compliance. However, the findings show that taxpayer awareness, tax knowledge, and tax audits do not significantly influence taxpayer compliance. Findings suggest that strategies to improve tax compliance should focus on enhancing service quality and implementing more optimal sanctions. With these efforts, it is hoped that local tax revenue from the restaurant sector can continue to increase and support sustainable regional development.

Utilising Public Finance to Foster Sustainable Growth in Local Communities

Due to fiscal decentralisation in Ukraine, local finances have become a more significant component of public finances, gaining a greater degree of autonomy and potential to be used to ensure the resilience and sustainable development of territories. At the same time, in the context of the war, communities faced the need to reorient their budgets towards the public order and social sectors, while spending on environmental protection and development incentives was significantly reduced. Sustainable development strategies were also suspended. The article aims to highlight current trends and the state of public finance as a tool for ensuring the sustainable development of territorial communities. Methods. The article used statistical analysis methods to assess the dynamics and structure of public finances in Ukraine in 2018–2024 and the case study method to review the strategies for sustainable development of territorial communities and sources of their financing. The results demonstrate increased state budget revenues in 2018–2024 and their share in public finances. Local budget revenues have fluctuated over this period, and their share has decreased. The amalgamation of territorial communities in 2020 contributed to financial consolidation, resulting in increased community budget revenues and their share in the structure of local budgets. The volume of community expenditures has also increased since 2018, and the possibilities for financing the socio-economic development of the territories have significantly expanded. The experience of local communities in Ukraine shows that local authorities have different priorities in their territorial development activities: some communities focus on economic growth, entrepreneurship, and investment, while others focus on social services, public order and security, and social protection. The concentration of financial resources in municipalities has expanded the possibilities for implementing local programmes and projects, including sustainable development projects. At the same time, there is a differentiation in the funding sources for sustainable development strategies, and community budgets and government transfers remain key to their implementation. The practical value of the study lies in highlighting trends, the state of public finances in Ukraine at the state and local levels, the state of development of sustainable community development strategies, and sources of funding. Keywords: public finance, financial potential of territorial communities, local budget expenditures on social protection, fiscal policy, financial control.

E-Commerce Growth and Its Impact on Local Marketing

Rapid expansion of e-commerce has reconfigured the competitive landscape for local businesses and reshaped the practice of place-based marketing. This article examines global e-commerce growth trajectories over the past decade and analyses how the rise of digital retail platforms alters local marketing strategies, budgets and consumer relationships. Drawing on a mixed-methods approach – statistical analysis of market data, a survey of 214 Uzbek and Central Asian small enterprises, and qualitative interviews with marketing managers – the study identifies three primary effects. First, the boundary between “online” and “offline” markets is eroding, compelling local firms to integrate omni-channel tactics. Second, data-driven targeting enabled by platforms such as Meta Ads and Yandex Direct is accelerating hyper-local personalisation while simultaneously heightening competition for attention. Third, regulatory interventions, logistics infrastructure and digital payment penetration act as mediating variables that determine whether e-commerce expansion crowds out or complements neighbourhood retailers. The findings suggest that local businesses that proactively adopt hybrid fulfilment models, invest in first-party data analytics and cultivate community-based brand narratives can offset the power asymmetry vis-à-vis global marketplaces. Policy implications include the need for granular digital-skills programmes and nuanced tax regimes that level the playing field without stifling innovation.