TRENDS OF FORMATION OF BUDGET RESOURCES OF TERRITORIAL COMMUNITIES

Abstract

The importance of financial support of local self-government bodies cannot be overestimated, as this process determines the possibility of effective performance of their powers and provision of the needs of the population and the development of territories. Financial resources of territorial communities consist of various sources, including taxes, transfers, and other revenues. However, not only the formation of these resources is important, but also their effective distribution and use. Therefore, the question of researching trends in the formation of budgetary resources of territorial communities in modern conditions is quite relevant in connection with constant changes in the socio-political environment that affect their financial stability. The purpose of the work is to analyze the formation of budgetary resources of local self-government bodies to ensure the effective performance of their powers and to promote the development of territorial communities. The methods used in this study include: systemic, complex – when defining the terms budget and budget resources; statistical, graphic – for a visual display of the dynamics and structure of budget revenues; method of generalization – when writing conclusions based on the results of the analysis. This article defines the concept of budgetary resources of territorial communities, their composition, and sources of revenue. The work examines the dynamics of financial resources, in particular the revenues of local budgets, it is revealed that the growth rate of state budget revenues exceeds the rate of increase in local budget revenues, which can limit the financial autonomy of local self-government bodies. Reserves for increasing budget resources are proposed, such as: legalization of the shadow economy, prevention of salary arrears, and development of property taxes. Emphasis is placed on the importance of improving administration for effective tax collection. It was also concluded that the mobilization of additional budgetary resources and their effective use will contribute to increasing the financial capacity of territorial communities and improving the quality of the provision of public services.