OPTIMIZATION OF THE TERRITORIAL COMMUNITIES’ BUDGET REVENUES STRUCTURE THROUGH THE PRISM OF BUDGET RISKS MINIMIZATION
Keywords:territorial community, financial decentralization, financial capacity, budget revenues of territorial communities, portfolio analysis, budget risk.
Reforming local self-government and territorial organization of power causes important changes in approaches and methods of assessing and substantiating the prospects for the development of territorial communities finances, the determining element of which is the local community budget. The budget of a territorial community in modern conditions is the only tool for fulfilling the powers of local self-government bodies, and with the unification of territorial communities it is an indicator of their financial capacity and self-sufficiency. It is the volume and structure of budget revenues that allows you to perform both own and delegated powers, forming the financial basis for socio-economic development of the united territories. In modern conditions, the rationally formed structure of budget revenues of territorial communities allows to effectively finance regional programs, but the inability to predict the likelihood of budgetary risks has a negative impact on these processes.
Given the above, the article examines the methodological principles of estimating the revenues of budgets of territorial communities, and develops an author's approach to optimizing their structure in the context of minimizing budgetary risks in terms of financial decentralization. The study applies the postulates of portfolio theory, in particular the portfolio approach of J. Hicks, which allowed to form a rational structure of budget revenues of territorial communities in terms of general and special funds and identify areas to minimize budgetary risks to ensure optimal revenue structure without interbudgetary transfers. In the conditions of permanent crisis phenomena, which will allow local self-government bodies of territorial communities to increase the performance of their budget revenues.
How to quote:
Kneisler OV, Nadal SV, Spasiv N. Ya. Optimization of budget revenue structure
territorial communities through the prism of minimizing budget risks. Scientific notes of the National University "Ostroh Academy". Series "Economics": a scientific journal. Ostrog: NaUOA Publishing House, March 2021. № 20 (48). Pp. 118–124.
Formulas: 12; fig .: 0; tab .: 2; bibl .: 11.
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