BUSINESS INFORM JOURNAL.

УКР

ENG

Search:

REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

PUBLISHER

Liburkina L. M.

SITE SECTIONS

The Role and Significance of Budget Instruments in Ensuring the Financial Sustainability of Territorial Communities under Martial Law
Yasenetskyi V. S.

Yasenetskyi, Volodymyr S. (2025) “The Role and Significance of Budget Instruments in Ensuring the Financial Sustainability of Territorial Communities under Martial Law.” Business Inform 5:367–376.
https://doi.org/10.32983/2222-4459-2025-5-367-376

Section: Finance, Money Circulation and Credit

Article is written in Ukrainian
Downloads/views: 0

Download article (pdf) -

UDC 336.143.2

Abstract:
The purpose of this article is to assess the current state and identify ways to enhance the efficiency of budget instruments in ensuring the financial sustainability of territorial communities in Ukraine under martial law. The article logically organizes the component elements of budget instruments, reveals the role and significance of each component in ensuring the financial sustainability of territorial communities, presents the dynamics of indicators that characterize the financial sustainability of territorial communities in Ukraine under martial law, and substantiates proposals for improving the efficiency of the use of budget instruments in ensuring the financial sustainability of territorial communities in Ukraine. An assessment was conducted on the impact of economic, demographic, regulatory, and institutional factors on ensuring the financial capacity of communities in the post-pandemic period and in the context of the full-scale armed aggression. It is emphasized that transparent budget planning and monitoring of budget execution allow for timely identification of deficit risks and prevention of financial crises. Based on the analysis of the dynamics of indicators characterizing the financial capacities of territorial communities under martial law, it has been proven that effective balancing of the community’s revenues and expenditures allows for maintaining the local budget deficit at a safe level and optimizing the debt burden. It is underscored that the development of budget policy for the territorial community and the application of appropriate budget instruments should be based on medium-term forecasting of revenues and expenditures, which will enable more efficient planning of resource utilization. After examining the practice of using budget instruments at the local level, it is proved that the revenues of local budgets continue to play a key role in ensuring the financial sustainability of territorial communities under martial law. Proposals have been substantiated regarding the appropriateness of using local borrowings and local guarantees as budget instruments to ensure the financial viability of territorial communities. It is proved that budget instruments are an important part of the adaptive budget policy in relation to complex systemic challenges under martial law. Prospect of further research in this area is to find ways to enhance the efficiency of budget instruments in ensuring the financial sustainability of territorial communities in Ukraine by prioritizing community expenditures on the continuity of basic public services, even in border and affected regions of Ukraine.

Keywords: budget instruments, financial capacity, territorial communities, local taxes, inter-budget transfers, budget lending and financing, local borrowing, lending instruments.

Fig.: 3. Bibl.: 13.

Yasenetskyi Volodymyr S. – Postgraduate Student, Department of Public Finance, State Tax University (31 Universytetska Str., Irpin, Kyiv region, 08205, Ukraine)
Email: [email protected]

List of references in article

Liutyi, I. et al. “Otsinka riznykh mekhanizmiv finansuvannia terytorialnykh hromad“ [Assessment of Various Mechanisms for Financing Territorial Communities]. Financial and Credit Activity Problems of Theory and Practice, no. 5 (2024): 122-135. DOI: https://doi.org/10.55643/fcaptp.5.58.2024.4556
Pitiulych, M. M. et al. “Determinanty rozvytku ta yikh vplyv na finansovu stiikist terytorialnykh hromad“ [Determinants of Development and their Impact on the Financial Resilience of Territorial Communities]. Rehionalna ekonomika, no. 1 (2023): 34-44. DOI: https://doi.org/10.36818/1562-0905-2023-1-4
Holynskyi, Yu. O., and Nuriieva, V. R. “Finansova spromozhnist hromad pid chas povnomasshtabnoi viiny“ [Financial Capacity of Communities during a Full-Scale War]. Ekonomika ta suspilstvo, no. 55 (2023). DOI: https://doi.org/10.32782/2524-0072/2023-55-41
Storonianska, I. Z., and Benovska, L. Ya. “Nova rehionalna polityka Ukrainy: instrumentarii ta napriamy reahuvannia v umovakh suchasnykh vyklykiv“ [New Regional Policy of Ukraine: Tools and Directions of Response in the Context of Modern Challenges]. Rehionalna ekonomika, no. 1 (2023): 5-11. DOI: https://doi.org/10.36818/1562-0905-2023-1-1
Koliada, T. A., and Alokhina, O. S. “Osoblyvosti zabezpechennia finansovoi spromozhnosti terytorialnykh hromad Ukrainy u voiennyi chas“ [Features of Providing the Financial Capacity of the Territorial Communities of Ukraine during the War]. Problemy suchasnykh transformatsii, no. 13 (2024). DOI: https://doi.org/10.54929/2786-5738-2024-13-08-03
Tsymbaliuk, I. O., Pavlikha, N. V., and Korneliuk, O. A. “Mistsevi biudzhety yak osnova finansovoi samostiinosti ta konkurentospromozhnosti terytorii“ [Local Budgets as the Basis for Financial Autonomy and Territorial Competitiveness]. Ekonomika ta suspilstvo, no. 55 (2023). DOI: https://doi.org/10.32782/2524-0072/2023-55-107
Ministerstvo finansiv Ukrainy. https://www.mof.gov.ua/uk
[Legal Act of Ukraine] (2010). https://zakon.rada.gov.ua/laws/show/2456-17#Text
[Legal Act of Ukraine] (2024). https://zakon.rada.gov.ua/laws/show/940-2024-п#Text
[Legal Act of Ukraine] (2010). http://zakon4.rada.gov.ua/laws/show/2755-17#Text
[Legal Act of Ukraine] (1997). https://zakon.rada.gov.ua/laws/show/280/97-вр#Text
Yasenetskyi, V. S. “Determinanty zmitsnennia finansovoi spromozhnosti terytorialnykh hromad u period pisliavoiennoho vidnovlennia Ukrainy“ [Determinants of Strengthening the Financial Capacity of Territorial Communities During the Period of Post-War Recovery of Ukraine]. Biznes Inform, no. 1 (2025): 266-275. DOI: https://doi.org/10.32983/2222-4459-2025-1-266-275
[Legal Act of Ukraine] (2011). https://zakon.rada.gov.ua/laws/show/131-2011-п#Text

FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

INFORMATION

The Plan of Scientific Conferences

OUR PARTNERS

Journal «The Problems of Economy»

The site and its metadata are licensed under CC BY-SA.

Write to webmaster