№ 8/2023

Fìnansi Ukr. 2023 (8): 81–96https://doi.org/10.33763/finukr2023.08.081

LOCAL FINANCE

VOZNYAK Halyna ¹, PATYTSKA Khrystyna ²

¹SІ “Institute of Regional Research named after M. I. Dolishniy of the NAS of Ukraine”
OrcID ID : https://orcid.org/0000-0003-2001-0516
²SI “Institute of Regional Research named after M. I. Dolishniy of the NAS of Ukraine”
OrcID ID : https://orcid.org/0000-0003-2871-7540

Budgetary determinants of ensuring the resilience of territorial communities: military adaptation and post-war recovery guidelines

Introduction. The Russian-Ukrainian war has had a negative impact on all spheres of life in Ukraine, undermining the financial and economic stability of systems at various levels of government. Thanks to decentralisation, territorial communities have become the main link in ensuring sustainability and social stability for the rear regions and a catalyst for stabilising the situation in the liberated territories. Today’s conditions dictate the need to find new approaches to restoring and ensuring sustainable growth of territories, given the limited list of influence parameters.
Purpose. The article aims to analyze the impact of the budgetary determinant on ensuring the resilience of territorial communities in the context of the war in Ukraine and to outline the guidelines for restoring their economic growth/development.
Results. In the article, in the context of four types of communities (communities in the frontline regions, regions where Ukraine’s control has been restored, communities in the supporting regions and communities in the rear regions), the author considers the peculiarities of accumulation of financial resources in the conditions of war; identifies changes in the functioning and development of territorial communities of Ukraine, which manifested themselves in: a) an increase in the number of territorial communities in need of financial support from the State budget; b) an increase in the disproportions in the index of taxpaying capacity of communities; c) loss of economic potential of communities in economically developed regions, where communities with a high level of fiscal capacity and financial stability were concentrated in the pre-war period.. The reasons for the destructive changes in the financial indicators of individual communities are identified.
Conclusions. It is argued that the risks of disruption to resilience for frontline rear, support communities and communities where Ukraine’s control has been restored are different, and therefore approaches to managing the development of territories and ensuring their resilience are also different. The need to modernize the system of interbudgetary equalization of the financial capacity of communities was emphasized. The author outlines the guidelines for restoring economic growth of communities in the context of the identified types.

Keywords:territorial communities, resilience, war, budgetary determinants, economic growth, development, financial stability, recovery

JEL: G01, H71, O18

VOZNYAK H. . Budgetary determinants of ensuring the resilience of territorial communities: military adaptation and post-war recovery guidelines / H. . VOZNYAK, K. Patytska // Фінанси України. - 2023. - № 8. - C. 81-96.

Article original in Ukrainian (pp. 81 - 96)

Download

Downloads :61

1. National Bank of Ukraine. (n. d.). Statistics. Macroeconomic indicators. Retrieved from bank.gov.ua/ua/statistic/macro-indicators#1 [in Ukrainian].
2. Potapenko, V. H. (Ed.). (2023). Local self-government as a factor in the stability of the rear (Analytical report). Kyiv: NISS. Retrieved from niss.gov.ua/sites/default/files/2023-01/ad-stiykist-gromad-_1_gotove_0.pdf [in Ukrainian].
3. Kravtsiv, V. S., & Storonianska, I. Z. (Eds.). (2020). Territorial communities in conditions of decentralization: risks and mechanisms of development. Kyiv: SI “Institute of Regional Studies named after M. I. Dolishnyi National Academy of Sciences of Ukraine”. Retrieved from ird.gov.ua/irdp/p20200001.pdf [in Ukrainian].
4. OECD. (2022, December 2). Turning to regions and local governments to rebuild Ukraine. Retrieved from www.oecd-ilibrary.org/docserver/9510f490-en.pdf?expires=1688375980&id=id&accname=guest&checksum=86F6116EC6C3319F26608B30BFEF56B5.
5. World Bank, Government of Ukraine, European Union, & United Nations. (2023). Ukraine Rapid Damage and Needs Assessment : February 2022 - February 2023 (English). Washington, D. C.: World Bank Group. Retrieved from documents.worldbank.org/curated/en/099184503212328877/P1801740d1177f03c0ab180057556615497.
6. Department of Economics of the National Academy of Sciences of Ukraine. (2023). Post-war revival of Ukraine. Vision of the Department of Economics of the National Academy of Sciences of Ukraine. Kyiv [in Ukrainian].
7. Lunina, I. (2022). Public finance capacity to secure expenditures during the war period and the post -war recovery of Ukraine. Finance of Ukraine, 8, 7–26 [in Ukrainian]. doi.org/10.33763/finukr2022.08.007
8. Iefymenko, T. (2023). Public Financial Management in martial time and post-war reconstruction of Ukraine: scientific support of transformations. Finance of Ukraine, 1, 7–25 [in Ukrainian]. doi.org/10.33763/finukr2023.01.007
9. Voznyak, H. (2022). Business assets of territorial communities in conditions of war: new challenges and management problems. Finance of Ukraine, 3, 38–52 [in Ukrainian]. doi.org/10.33763/finukr2022.03.038
10. Voznyak, H., & Patytska, K. (2021). Finances of territorial communities of Ukraine in the conditions of spreading pandemic: problem-oriented analysis taking into account behavioral aspects. Economy of Ukraine, 6, 78–98 [in Ukrainian]. doi.org/10.15407/economyukr.2021.06.078
11. Verkhovna Rada of Ukraine. (2022). On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine regarding the effect of norms during the period of martial law (Act No. 2120-IX, March 15). Retrieved from zakon.rada.gov.ua/laws/show/2120-20#Text [in Ukrainian].
12. Open budget (State budget web portal for citizens). (n. d.). Retrieved from openbudget.gov.ua/ [in Ukrainian].
13. Onyshchuk, I. (2023, July 18). Analysis of the implementation of local budgets for 2022. Decentralization. Retrieved from decentralization.gov.ua/news/16105 [in Ukrainian].
14. Ministry of Economy of Ukraine. (2022, November 25). Thanks to the government's relocation program, more than 35,000 jobs have been saved - Tetyana Berezhna. Retrieved from www.me.gov.ua/News/Detail?lang=uk-UA&id=a54c8281-02fa-4ced-8b14-3a7ca772a826&title=Zavdiaki [in Ukrainian].
15. Shatsk Settlement Territorial Community. (2023). Socio-economic analysis for the development of the project of the Development Strategy of the Shatsk settlement territorial community of the Volyn region for the period 2023-2027. Retrieved from drive.google.com/drive/folders/1A627WdqGZaV3NbCKyGi89tG3tqtbj55t [in Ukrainian].
16. Cabinet of Ministers of Ukraine. (2022). Some issues of distribution of the amount of educational subvention for 2023 (Decree No. 1472, December 30). Retrieved from zakon.rada.gov.ua/laws/show/1472-2022-%D0%BF#Text [in Ukrainian].
17. Cabinet of Ministers of Ukraine. (2021). On the approval of the Procedure for the exercise of powers by the State Treasury Service in a special regime under martial law conditions (Decree No. 590, June 9). Retrieved from zakon.rada.gov.ua/laws/show/590-2021-%D0%BF#Text [in Ukrainian].
18. Cabinet of Ministers of Ukraine. (2022). Some issues of formation and implementation of local budgets during martial law (Decree No. 252, March 11). Retrieved from www.kmu.gov.ua/npas/deyaki-pitannya-formuvannya-ta-vikonannya-miscevih-byudzhetiv-u-period-voyennogo-stanu-252 [in Ukrainian].