TOOLS OF FINANCIAL SUPPORT OF TERRITORIAL COMMUNITIES

Abstract

The article is devoted to the analysis of the tools of financial support of territorial communities, which includes mechanisms, tools and sources of financial support. Among the mechanisms of financial support of territorial communities in Ukraine, which are implemented in practice, the mechanism of subventions, the mechanism of grants, the mechanism of redistribution of funds through the State Fund for Regional Development, the mechanism of financial assistance and grants, the mechanism of crediting are allocated. The main grant opportunities for territorial communities of Ukraine for 2021 are systematized. The list of instruments of financial support of territorial communities includes eight items, there are the basic dotation, additional dotations and subventions (educational, medical and other subventions). It is substantiated that these tools are important in providing financial support to local communities, as in this way the state tries to provide the population with guaranteed public services (education, medicine, culture, defense, etc.), equality and fair access to them, regardless of the region where the community is located, its financial and fiscal capacity. However, these instruments finance current expenditures – expenditures aimed at consumption, to implementation of basic functions and tasks, to equalize the budgets of local communities. The necessity of strengthening the economic, investment and innovation orientation of the budgets of territorial communities and the use of development tools is substantiated. It will allow to manage a significant share of public affairs, under their own responsibility, in the interests of the local population. Among these, the tools for the development of territorial communities of Ukraine are subventions for the formation of the relevant infrastructure of the united territorial communities, subventions from the state budget to local budgets for measures for socio-economic development of individual territories, subventions for investment projects. External and internal sources of financial support of territorial communities of Ukraine are determined. Internal sources of financial support include funds raised from state and local budgets, and external sources include grants and loans provided by international organizations.