MONITORING THE LEVEL OF DOTATIONS OF BUDGETS OF THE UNITED TERRITORIAL COMMUNITIES

Abstract

The article examines the general aspects of the formation of the financial capacity of the united territorial communities. The indicator of financial capacity of a territorial community consists of budget and tax capacity, financial capacity of households, financial capacity of economic entities and depends on income accumulated in the community budget to ensure a decent standard of living and the ability to solve their problems. Emphasis is placed on the essence and role of the basic dotation, as well as the reverse dotation in the economic development of the community. The dynamics of the volumes of budget indicators of the basic dotation and the reverse dotation are analyzed, on the basis of which their growth coefficients are calculated. It is established that the stable dependence of regional development on the instruments of subsidized financial policy will produce low rates of autonomy of the fiscal capacity of the united territorial communities. The budget indicators of the united territorial communities were calculated based on the results of their implementation in 2020 in the context of monitoring the level of dotation. It was found that the least dependent on dotation resources from the state budget are communities-cities of regional importance (group 5), in general, the share of dotation budgets was 70%. Directions for increasing the fiscal capacity of the united territorial communities in Ukraine have been formed in order to optimize the dotation’s policy in the future. An effective mechanism for overcoming the crisis of the institution of national self-government is the introduction of a combined model of fiscal federalism, which will create legal, organizational and economic mechanisms to achieve financial independence of the budgets of the united territorial communities in the tactical and strategic perspective. The financial policy of the state and united territorial communities should be in a symbiosis of the stimulating influence of the latter on self-development with the gradual implementation of effective foreign practice of reducing the level of subsidies to local budgets.