FINANCIAL CAPACITY OF COMMUNITIES DURING A FULL-SCALE WAR

Abstract

The study analyzed the impact of a full-scale war on the financial capacity of territorial communities. In particular, the theoretical foundations of the financial capacity of territorial communities and the impact of decentralization on it are described. In addition, the article analyzes and assesses the financial stability of local budgets during a full-scale invasion. Ways to increase the financial capacity of territorial communities during martial law are also proposed. The purpose of the study is to determine the impact of a full-scale invasion on the financial stability of territorial communities and the possibilities of further increasing the capacity of communities during martial law. The tasks of the research are: to investigate the theoretical aspects of the formation of the financial capacity of territorial communities and the impact of decentralization on it; analyze and assess the financial sustainability of local budgets during a full-scale invasion compared to previous years; to propose ways of increasing the financial capacity of territorial communities during martial law. Subject and object of research. The subject of this study is the financial capacity of the budgets of territorial communities. The object of the study is the budgets of village, settlement and city councils (territorial communities of Ukraine). Research methods. Such research methods as dialectical and comparative, as well as systematization and graphic methods were used. Scientific novelty of the obtained results. In this study, the level of impact of a full-scale invasion on the territory of Ukraine on the income and expenditure part of the budgets of territorial communities was assessed and ways of increasing the financial capacity of communities were proposed. Practical meaning of work. The results of the study can potentially be used by local financial authorities to make management decisions. The research suggests ways to increase the financial capacity of territorial communities during martial law, in particular: attracting investments, improving cost efficiency, developing small and medium-sized businesses, using grants and sponsorships, attracting help from international organizations and donors, tax benefits and reducing tax burdens.