FUNCTIONING OF THE UNITED TERRITORIAL COMMUNITIES UNDER THE CONDITIONS OF THE STATE OF MARTIAL

Abstract

The process of decentralization was launched to increase the efficiency of the use of financial resources and improve the socio-economic development of the regions. On April 1, 2014, the Cabinet of Ministers approved the "Concept of Reforming Local Self-Government and Territorial Organization of Power in Ukraine." In this concept, the need for the formation of capable territorial communities was formed. Local budgets are one of the important components of the budget system of Ukraine and the country as a whole. The full-scale Russian invasion became a global challenge of modernity for Ukraine, which affected all economic processes of the country. Therefore the article is devoted to topical issues of determining the current state of functioning of united territorial communities. The essence of the concept of "territorial community" was studied and its economic characteristics were outlined. The term "capable territorial community" was revealed, as well as the rating of the community capacity of Lviv region during 2021-2022 was considered. The main sources of the formation of the revenue part of local budgets were highlighted. The structure of the incomes of the budgets of territorial communities was analyzed, and the change in their volumes was considered. A reduction in the income of associations that suffered from military operations or were under occupation was determined. Attention is focused on the items of income that have experienced the largest reductions and the reasons for the negative dynamics have been investigated. Changes in budget and tax legislation during the war are outlined. Despite the economic challenges, it was the war that showed how sustainable local self-government is, particularly in the financial part. Provision of territorial defense activities, assistance to the Armed Forces of Ukraine are the directions that territorial communities have supported since the beginning of the invasion, while ensuring the uninterrupted functioning of all spheres of life of citizens at the local level (assistance to internally displaced persons, support for relocated businesses, organization of shelters, continued provision of services at appropriate level).