# 65 403-407 View full article

УДК: 330 : 336.221.24 : 334

DOI: https://doi.org/10.36887/2415-8453-2023-4-65

Radelytskyy Yuriy,
Doctor of Economics, Professor, Head of Department of Accounting and Auditing,
Ivan Franko National University of Lviv
https://orcid.org/0000-0001-8968-4821
Symanych Nazar,
Postgraduate Student,
Ivan Franko National University of Lviv
https://orcid.org/0009-0008-1584-9513

JEL classification: H61; H79; O23

The article explores the issues of local budgets as the financial foundation of local self-government in conditions of economic instability. It defines the competencies of local self-government bodies in the sphere of local budget functioning and accumulation of financial resources. The article aims to substantiate the possibilities of strengthening the financial base of local self-government bodies in the context of economic instability. According to the European Charter of Local Self-Government, the article investigates the financial autonomy of local self-government bodies. According to the Charter, territorial communities have the right to own financial resources, enough funds to fulfill delegated powers, manage received financial resources according to their vision, receive assistance from higher-level budgets for financial equalization among communities, borrow funds, and receive assistance from the state budget based on competitiveness and clarity of implementation methods. It is established that the revenue part of local budgets needs to provide more funds for financing regional development programs and essential public services. Therefore, the needs of communities are met through interbudgetary transfers in the form of subsidies and grants. Additional measures have been identified that have been implemented to enhance the financial independence of local budgets within the framework of budgetary and tax decentralization (establishment of a single norm of deductions from national taxes; abolition of the indicative planning system by the Ministry of Finance; formation of a single revenue basket of the general fund; introduction of a system of tax capacity equalization for the territory). The structure of local budget revenues has been studied, where the primary sources of local budget revenues include tax and non-tax receipts, income from capital operations, and interbudgetary transfers. The system of interbudgetary relations, namely the basic subsidy and grants provided to local budgets, has been analyzed. Inter-municipal borrowing is identified as one of the potential paths for community development, especially in conditions of economic instability.

Keywords: local budgets, territorial communities, decentralization, economic instability, taxes, and fees, interbudgetary transfers.

Rеferences

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The article was received 22.09.2023