• Olha Demianchuk
  • Mariia Sypata
Keywords: united territorial community, incomes of united territorial communities, expenses of united territorial communities


The article examines the peculiarities of formation and usage of funds of the united territorial communities (OTH) in Ukraine. The author focuses on determining the features of formation of the resources of the united territorial communities, in particular, the dynamics of their incomes. The author also determines the change in the composition of revenue and expenditure in the process of decentralization. Characterizing revenue and expenditures of the united territorial communities and their distribution, problematic issues are identified in their formation and consumption. The dynamics of revenues are analyzed, the main changes in the taxation system are determined, innovations concerning redistribution of tax payments between budgets, which will be introduced in 2018, are outlined. It also analyzes the financial resources of the territorial communities, which receive their budgets in the form of state support for community development and infrastructure development. The result of the study is to identify the problems that impede the development of administrative-territorial units and their basic level of territorial communities.

The first among the key problems is the reluctance of some villages, settlements, townships to unite, due to self-confidence or inactivity of local officials.

Another disadvantage that prevents OTH from receiving higher budget revenues is the lack of awareness of community leaders, their lack of initiative in the direction of cooperation of territorial communities, and mistrust of leaders of different communities to each other.

The third problem can be defined as the receipt of a smaller amount of taxes in budgets than is necessary. The reason for this phenomenon is the careless attitude of local governments to the financial control of local enterprises. Therefore, it is necessary to conduct at least an annual inspection of all economic entities of the community in all financial aspects.

On the basis of these problems, the directions for improving the system of formation and usage of funds of the united territorial communities were determined.