FINANCIAL PROVISION OF LOCAL GOVERNMENT BODIES IN UKRAINE IN CONDITIONS OF ECONOMIC UNCERTAINTY

Abstract

This article analyzes contemporary approaches to establishing the financial base of local self-government bodies in Ukraine amidst heightened economic uncertainty. Financial provision is defined as the aggregate of resources at the disposal of local authorities required to execute legally mandated tasks and functions. The study explores various instruments aimed at bolstering the financial resources of territorial communities, including tax and non-tax revenues, local borrowing mechanisms, public-private partnerships, and grant-based financing.
However, the research identifies significant structural challenges: a profound imbalance in resource distribution, excessive dependence on intergovernmental transfers, institutional weaknesses, and inefficiencies in the administration of local taxes. To address these issues, the article highlights critical development prospects, such as expanding the tax base, leveraging the advantages of the ongoing decentralization reform, and implementing digitalization alongside medium-term strategic planning. Furthermore, the importance of advanced personnel training and the adoption of environmental and energy-efficient projects is emphasized as a driver for regional resilience.
The study concludes that the formation of a robust financial base is a fundamental factor in the successful realization of decentralization policy. In an era of economic uncertainty, the role of local governments shifts toward solving complex socio-economic problems that directly influence the quality of life of residents. By integrating innovative management tools and optimizing resource utilization, communities can achieve greater financial autonomy and ensure long-term stability.