PROSPECTS FOR STRENGTHENING THE FINANCIAL SELF-SUFFICIENCE OF TERRITORIAL COMMUNITIES UNDER THE CONDITIONS OF DECENTRALIZATION

Abstract

The article identified the main sources of funding for the development of territorial communities in Ukraine under conditions of decentralization. It is highlighted that financial support plays a decisive role in the development of such communities. Therefore, the importance of funding territorial communities to ensure the progress of individual territories and manage local finances is special. The effectiveness of this process depends on the ability to use the features of a specific territory, finding various sources of financial resources, their accumulation, effective use and distribution, as well as creating conditions for the successful implementation of economic plans, projects and social programs at the local level. The main sources of funding for the development of territorial communities were identified, which are revenues from local budgets, financial support of local self-government from the state and the search for additional sources of financial resources by local authorities through the use of the development potential of a specific territory. Funds from the local budget play an important role in providing territorial communities with financial resources. Recent years have seen a significant increase in the participation of local self-government bodies in increasing local budget revenues. This success is achieved through improved interaction with business representatives, an increase in the number of registered enterprises and their full payment of taxes to the local budget. It is noted that although the total revenues to local budgets are increasing, there is still a significant difference in the incomes of different territorial communities. The analysis shows that the financial support of communities shows a level of discrepancies, which leads to differences in the quality and volume of public services in different territories. This indicates the uneven development of individual territories and the need to review the existing approaches to the management of such communities, as well as the large role of the state in their functioning. Local self-government bodies set themselves the task of finding additional sources of financial resources by local authorities, using the development potential of a specific territory. In order to provide financial resources for the development of territorial communities, it is proposed to use a systematic approach, which involves a combination of own sources of income with resources provided by state support for territories, as well as expanding the possibilities of creating creative industries as new sources of local income.