№ 7/2019

Fìnansi Ukr. 2019 (7): 92–112https://doi.org/10.33763/finukr2019.07.092

LOCAL FINANCE

LJUTYJ Igor ¹, SPASIV Nataliia ²

¹Taras Shevchenko National University of Kyiv
OrcID ID : https://orcid.org/0000-0002-3561-2432
²Ternopil National Economic University, Research ID : http://www.researcherid.com/rid/H-3784-2017
OrcID ID : https://orcid.org/d.org/ 0000-0003-0797-7220

Assessment of the financial capacity of united territorial communities

Modern realities require local authorities to take decisive action to ensure the financial and material basis of UTC functioning since strengthening UTC financial strength and self-sufficiency is a guarantee of better living conditions for every UTC resident and improving the quality of public services. Accordingly, in this context, the theoretical and methodical approaches to the assessment of the financial capacity of the united territorial communities (UTC) in the conditions of the reform of the system of local self-government and decentralization of power are analyzed. It is established that when forming a united territorial community, it is important to pre-calculate its financial capacity, which will allow it to assess the benefits and risks of such an association, to identify the need to seek additional funds and organize the expenditures. Based on the postulates of the Methodology for determination of UTC capabilities, the indicators that allow establishing the UTC financial capability are identified. The given system of indicators has analyzed the financial capacity of UTCs created in Ukraine since the beginning of reforms. It is substantiated that the definition of financial capacity of newly established UTCs in accordance with the UTC groups formed by the Ministry of Regional Development, Construction and Housing and Communal Services of Ukraine should be based on indicators such as the level of subsidy of the UTC budgets, the amount of own income per capita and the dynamics of local taxes and fee receipts. In this context, particular attention is focused on conducting a regression analysis, through which the determination links of the main indicators of financial capability of UTC of Ukraine are established, which enables to optimize the set of these indicators. It is proved that a definite system of indicators will allow forecasting the most optimal groups of territorial communities for the integration into financially capable UTCs.

Keywords:territorial community, united territorial communities (UTC), UTC financial capacity, UTC finances, UTC budget, revenues and expenditures of the UTC budget

JEL: Н77

Ljutyj I. . Assessment of the financial capacity of united territorial communities / I. . Ljutyj, N. . SPASIV // Фінанси України. - 2019. - № 7. - C. 92-112.

Article original in Ukrainian (pp. 92 - 112)

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