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Assessing the State and Modeling of Prospects for the Development of the Financial Capacity of Territorial Communities
Nedilska L. V., Umanets L. V., Yashchenko M. S., Demianchuk I. V.

Nedilska, Larysa V. et al. (2023) “Assessing the State and Modeling of Prospects for the Development of the Financial Capacity of Territorial Communities.” Business Inform 8:85–92.
https://doi.org/10.32983/2222-4459-2023-8-85-92

Section: Regional Economy

UDC 352:338.244.47

Abstract:
The aim of the article is to assess the state of financial capacity of territorial communities of the Zhytomyr region and to model the prospects for their development, taking into account the established trends. It is substantiated that in order to achieve the effective functioning and development of territorial communities, all efforts should be aimed at the development of internal potential, the optimal use of mechanisms for the formation of the revenue side of local budgets and the rational use of the formed financial resources. It is found that the execution of local budgets of territorial communities of the Zhytomyr region in terms of key indicators indicates an unstable situation that characterizes the average trends in Ukraine, which is explained by the high concentration of production and service enterprises in the central regions of Ukraine (including in the Zhytomyr region), whose tax payments provide the lion’s share of all revenues to local budgets. It is identified that within the boundaries of the Zhytomyr region, communities with a population of up to 10 thousand people demonstrate the best results of economic management. In particular, it is found that the communities comprising from 5 to 10 thousand persons have the highest variability of the results obtained, which can be explained by their high flexibility and dependence on the quality of management. It is proved that the least effective and most vulnerable were large communities with a population of more than 15 thousand people. According to all of the above indicators, they were worse than the regional average, and there was not a single hromada with exemplary results among them. The main criteria for the success of territorial communities are allocated and substantiated, in particular: the optimal number of communities is up to 10 thousand people; effective financial provision, stability and sufficiency of resources; qualified specialists in self-government bodies; high-quality control over the activities of self-government bodies; activity and initiative of the community.

Keywords: revenues of local budgets, local budgets, territorial communities, financial capacity.

Tabl.: 4. Bibl.: 10.

Nedilska Larysa V. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Finance and Credit, Polissia National University (7 Staryi Blvd, Zhytomyr, 10008, Ukraine)
Email: [email protected]
Umanets Ludmila V. – Lecturer, Vinnytsia College of Construction and Architecture of Kyiv National University of Construction and Architecture (53 Kotsiubynskoho Str., Vinnytsia, 21001, Ukraine)
Email: [email protected]
Yashchenko Marharyta S. – Masters Student, Polissia National University (7 Staryi Blvd, Zhytomyr, 10008, Ukraine)
Email: [email protected]
Demianchuk Ivan V. – Postgraduate Student, Polissia National University (7 Staryi Blvd, Zhytomyr, 10008, Ukraine)
Email: [email protected]

List of references in article

“Analiz vykonannia mistsevykh biudzhetiv za 2022 rik“ [Analysis of the Implementation of Local Budgets for 2022]. Detsentralizatsiia. February 13, 2023. https://decentralization.gov.ua/news/16105?page=2
Bazko, O. A. “Praktychna realizatsiia modeli otsiniuvannia hotovnosti obiednanykh terytorialnykh hromad do zdiisnennia proiektnoi diialnosti“ [Practical Implementation of the Model for Assessing the Readiness of United Territorial Communities to Implement Project Activities]. Tavriiskyi naukovyi visnyk, no. 4 (2022): 3-9. DOI: https://doi.org/10.32851/tnv-pub.2022.4.1
“Dashbord «Biudzhety terytorialnykh hromad Ukrainy»“ [Dashboard "Budgets of Territorial Communities of Ukraine"]. Detsentralizatsiia. https://decentralization.gov.ua/finance/dashboard
Dmytrovska, V. S., and Kokhan, I. V. “Dokhody mistsevykh biudzhetiv v umovakh pandemii COVID-19“ [Local Budget Revenues in the Convention of the COVID-19 Pandemic]. Aktualni problemy rozvytku ekonomiky rehionu. 2020. https://journals.pnu.edu.ua/index.php/aprde/article/view/4539/5036
“Dovidnyky mistsevykh biudzhetiv“ [Reference Books of Local Budgets]. Ministerstvo finansiv Ukrainy. https://mof.gov.ua/uk/dovidnyky-misc-budg
Pavlovych-Seneta, Ya. P. “Administratyvno-pravovi peredumovy dlia ekonomichnoho rozvytku obiednanykh terytorialnykh hromad v umovakh voiennoho stanu“ [Administrative and Legal Prerequisites for the Economic Development of United Territorial Communities under Martial Law]. Analitychno-porivnialne pravoznavstvo, no. 2 (2022): 222-226. DOI: https://doi.org/10.24144/2788-6018.2022.02.42
Petrushenko, Yu. M., Ventsel, V. T., and Vysochyna, A. V. Finansova polityka mistsevoho rozvytku [Financial Policy of Local Development]. Sumy: Sumskyi derzhavnyi universytet, 2020.
Sakhno, T. A. “Ekonomichni zasady formuvannia terytorialnykh hromad u rozvytku rehionu“ [Economic Principles of the Formation of Territorial Communities in the Development of the Region]: dys. … d-ra filosofii : 051, 2023.
Skliarska, O. “Funktsionuvannia spromozhnykh terytorialnykh hromad Ukrainy: suspilno-heohrafichni aspekty“ [Functioning of Capable Territorial Communities in Ukraine: Socio-Geographical Aspects]. Naukovi zapysky Ternopilskoho natsionalnoho pedahohichnoho universytetu imeni Volodymyra Hnatiuka. Seriia «Heohrafiia», no. 2 (2022): 69-75. DOI: https://doi.org/10.25128/2519-4577.22.2.9
Khrushch, N., Forkun, I., and Hordieieva, T. “Modeliuvannia ta statystychna otsinka rivnia efektyvnosti finansovoi detsentralizatsii biudzhetiv OTH v Ukraini“ [Modeling and Statistical Estimation of the Efficiency of Financial Decentralization of UTC's Budgets in Ukraine]. Modeling the Development of the Economic Systems. 2022. http://elar.khmnu.edu.ua/bitstream/123456789/12287/1/153-163.pdf

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