FINANCIAL CAPACITY OF TERRITORIAL COMMUNITIES OF LVIV REGION IN THE CONDITIONS OF DECENTRALIZATION

Abstract

The article presents the interpretation of the concept of financial capacity of territorial communities, offers a methodical approach to assessing the financial capacity of territorial communities based on a system of indicators that allow determining their rating. The purpose of the article is to study the main parameters and indicators of the financial capacity of territorial communities of the Lviv region in conditions of decentralization and determine their rating. It is proposed to consider the financial capacity of a territorial community as the sufficiency of its income to ensure current and future expenses, taking into account the development potential or the ability to restore positive trends, parameters and financial and economic indicators for problematic and depressed territorial communities. In the course of the study, a methodological toolkit for assessing the financial capacity of territorial communities was developed based on eight indicator indicators, namely: the dynamics of general fund revenues (without transfers) in 2022 to 2021 for the corresponding period, the tax capacity index for the revenues of the general fund without transfers for the relevant period, the level of budget subsidies, expenditures per 1 inhabitant, own revenues per 1 inhabitant, development expenditures per 1 inhabitant, the share of expenses for the maintenance of the administrative apparatus to the receipts of taxes and fees, the share of salary expenses in the total amount of expenses of united territorial communities. The approbation of this methodology allowed for the rating of the united territorial communities of the Lviv region according to the level of financial capacity: high, medium, low. The highest level of financial capacity in 2022. had Solonkivska TС, Lviv TС and Novoyavorivska TС, the middle level – Shegynivska TС, Boryslavska TС, Radekhivska TС, the lowest level – Dobrosynsko-Magerivska TС, Zhuravnenska TС, Strilkivska TС. Further research in this direction should be focused at the development of conceptual directions for ensuring the financial capacity of territorial communities, taking into account the main parameters of the socioeconomic system, as well as the development of the principles of assessing the financial capacity of local communities, taking into account the cross-border aspect, the influence of the movement of goods, works, services, people and capital.