FORMATION AND EXECUTION OF LOCAL BUDGETS IN WARTIME CONDITIONS

Abstract

The article examines the state and peculiarities of the implementation of local budgets during the period of martial law. The legislative changes caused by the armed aggression of the Russian Federation regarding the implementation of budget policy at the national and local levels are outlined. It is noted that the formation of the military administration of settlements temporarily limits the implementation of local self-government, since already from the moment of its formation, separate powers of local self-government bodies are transferred to the military administration. The implementation of local budgets for 2022 and six months of the current year was analyzed. It has been established that the main financial resource of local budgets remains the personal income tax. The increase in income from this tax is due to a significant increase in cash payments to military personnel and an increase in the rate of inclusion of personal income tax in local budgets - from 60% to 64% from the beginning of 2022. Taking into account the priority of expenditures and the requirements of martial law, first of all, local self-government bodies reduced all non-priority expenditures. According to the economic characteristics of the operations that are carried out in accordance with the functions of local self-government, the largest specific weight was the expenditure on wages and in general for 2022 they were reduced by UAH 7 billion. Of course, the largest share of labor costs goes to the education sector. Also, considerable funds were directed to the maintenance of the local self-government bodies themselves. It was emphasized that, in general, local self-government is able to effectively dispose of and increase the received financial resources, to adequately respond to unforeseen challenges, even in the conditions of martial law. Every month, the gap between the implementation of budgets in the rear and frontline regions is growing. And this means that in the next steps, the state should make decisions regarding financial support for citizens of Ukraine who suffered as a result of hostilities and in the reconstruction of such territories.