FINANCIAL CAPACITY OF COMMUNITIES: FEATURES IN THE CONDITIONS OF CURRENT CHALLENGES

Abstract

Scientific approaches to the concept of financial capacity of communities are considered and an understanding of this definition is proposed as the ability to effectively attract and use financial resources from various sources to perform their functions/tasks and have an effective impact on the socioeconomic development of the community. The purpose of the article is to analyze the features of the financial capacity of communities in Ukraine in the context of modern challenges. Research methodology. The materials of the study are: 1) regulatory and legal support for the activities of local government bodies; 2) works of domestic and foreign authors conducting their scientific and practical research in the field of building the financial capacity of communities. Scientific novelty. Financial support for community development is characterized through three key approaches. The role and place of local budgets in the mechanism of financial support and socio-economic development of communities is determined. To determine the financial capacity of communities, the dynamics of the filling of local budgets for 2020-2024 were analyzed and the growth of local budget expenditures was clarified. An analysis of the annual plans of local budgets' revenues and expenditures was carried out during the analyzed period and the underperformance of the annual plan of local budgets by revenues was revealed. The worst situation regarding expenditures in 2024 was identified. The most capable communities were identified in terms of recalculation of reversionary subsidies. The ranking of the most subsidized temporarily occupied, deoccupied communities and the number of communities with a subsidy of 50% was determined. The key sources and growth of revenues of the general fund of local budgets were indicated. An increase in revenues of the general fund of local budgets was identified due to a number of measures of enterprises and authorities aimed at supporting business development under martial law. Conclusions. The risk of loss of financial stability of communities requires the activation of local selfgovernment bodies on the issues of forming and implementing local budgets in relevant areas; the task of the state to maintain macroeconomic stability is to establish effective interaction with local selfgovernment bodies. The problem of the relationship between the state and local budgets is emphasized, the regulatory and legal aspect is highlighted. The feasibility of implementing a number of measures to improve the financial capacity of communities in the face of modern challenges is proposed.