The current stage of territorial communities establishment

Issue: №10, 2019

Introduction. Under the current conditions of economic development, the role of territorial communities with local self-government in the socio-economic development of the country is growing due to a series of reforms that have been initiated and are already being implemented. In accordance with the implementation of the decentralization reform, a huge part of the powers and responsibilities in the financial and budgetary spheres goes "on the ground". However, there are many complicated and painful problems about their functioning, the solution of which, in general, affects socio-economic development of our state. Сurrently, the main problem is the proper implementation of their functions by the united territorial communities(UTCs), which is intertwined with the issues of budget filling, the formation of financial resources needed for the proper financing of the urgent social needs of the communities based on the principle of subsidiary, the implementation of their programs of economic, technological and other development. Results. The basic principles of the resource efficiency management of the united territorial communities are outlined, the process of UTCs formation and principles of UTCs local financial management are analyzed. The research results showed that the system of local self-government does not meet the needs of society nowadays. Only the cooperation of territorial communities, resource base integration and management capabilities consolidation are a key form of the right to local self-government realization, which can not only solve the most acute problems of territorial development by joint efforts, but also provide a new quality of life and community development. As practice shows, the process of power decentralization is complex and consists of many elements. Nowadays, the number of UTCs is constantly growing, which is evidence of the effective decentralization concept implementation on the path to European integration. At the same time, the level of UTCs budget revenues can now actually be doubled, which is a positive aspect. This makes it possible to conduct effective social policy on the ground. Conclusion. It is proved that cooperation of territorial communities is a separate specific form of the right to local self-government realization. Such a model of territorial community activity, and more precisely its authorities, guarantees the expansion of opportunities to meet the needs of territorial development. Although the legislator does not clearly define the nature of the UTCs cooperation, the existing legislative provision still creates conditions to solve development problems and improve the population’s quality of life for several communities at once due to the consolidation of resources, infrastructure and organizational efforts. References: 1. On Voluntary Association of Territorial Communities: Law of Ukraine dated 05 of February 2015 No. 157-VIII / The Verkhovna Rada of Ukraine. URL: https://zakon.rada.gov.ua/ laws/show/157-19 [in Ukrainian]. 2. Official website of the Verkhovna Rada of Ukraine. URL: http://zakon.rada.gov.ua.//zakon.rada.gov.ua [in Ukrainian]. 3. Vlasiuk O.S Priorities of reforming and directions of perspective development of inter-budgetary relations in condi-tions of budget decentralization in Ukraine: Analytical report. Kyiv: NISS, 2015. 80 p. URL: http://old2.niss.gov.ua/content/ articles/files/Prior_reformuv_Shemaeva-6cb4e.pdf [in Ukrainian]. 4. Decentralization in Ukraine. URL: http://decentralization.gov.ua/gromada [in Ukrainian]. 5. Barabash T.H. Financial prerequisites for the association and cooperation of territorial communities in Ukraine. Scientific works of NDFI. 2014. Issue 2. pp. 44-52. [in Ukrainian]. 6. Formation of united territorial communities: state, problem issues and ways of their solution. URL: http://www.niss.gov.ua/content/articles/files/terutor_gromad-86ead.pdf. (application date: 04.10.2019). 7. The Budget Code of Ukraine dated 08.07.2010 № 2456-VI with amendments and additions URL: http://zakon3.rada.gov.ua/ laws/show/2456-17 [in Ukrainian]. 8. Ospishchev V.I. Finances: The course for financiers: tutorial. Kyiv: Knowledge, 2008. 567 p. 9. Markovych H. Features of the budgets of the united territorial communities. URL: http://galinfo.com.ua/articles/ v_chomu_polyagayut_osoblyvosti_formuvannya_byudzhetiv_otg_249352.html [in Ukrainian]. 10. Natalenko N.V. Finances and the budget of the united community (training module). Kiev: ICC "Legal Status", 2016. 72 p. URL: https://www.csi.org.ua/wp-content/uploads/2016/10/ Finansu-ta-budjet.pdf [in Ukrainian].

Keywords : nited territorial communities, decentralization, budget, ability, budget revenues, personal income tax, local taxes and fees

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