Implementation of the principles of financial management of territorial communities in the conditions of the russian-Ukrainian war

Pysmennyi, Vitalii

Ternopil Ivan Puluj National Technical University 56 Ruska str., 46001, Ternopil, Ukraine

Pysmennyi, V. (2024) Implementation of the principles of financial management of territorial communities in the conditions of the russian-Ukrainian war. Socio-Economic Problems and the State (electronic journal), Vol. 31, no. 2, pp. 11-20. URL: http://sepd.tntu.edu.ua/images/stories/pdf/2024/24pvvruv.pdf

Scientific Journal "Socio-Economic Problems and the State"

2(31)

Dec-2024

Aug-2024

1-Jan-2025

Ternopil Ivan Puluj National Technical University

UA

Ternopil

https://orcid.org/0000-0001-7852-3627

https://doi.org/10.33108/sepd2024.02.011

336.14:352

H71
H72
H73

financial management of territorial communities
principles of capacity, efficiency, transparency and accountability

10

11-20

11

20

The full-scale russian invasion has created unprecedented threats to local self-government bodies in Ukraine. This necessitates a reevaluation of traditional approaches to managing local finances. In war conditions, the financial stability of territorial communities becomes crucial. It is essential for meeting the basic needs of the population, maintaining local infrastructure, and ensuring the independence of local self-government bodies. The study results showed that during the russian-Ukrainian war, managing the finances of territorial communities requires both a prompt response to the consequences of military actions and strategic financial planning. Achieving these goals is possible by adaptation of the principles of financial management to war conditions, taking into account changes in sources, priorities, and volumes of funds. The analysis of the practice of implementing principles of financial management of territorial communities showed that ensuring the principle of capacity requires a comprehensive approach through income diversification, including increasing the fiscal role of local taxes and fees and attracting credit resources. It has been established that the principle of efficiency is achieved by optimizing budget expenditures to support defense capability. This is possible only if local self-government bodies properly exercise their powers. It has been substantiated that the principle of transparency in financial management at the local level, despite the limitations of martial law, should be ensured through public control mechanisms involving citizen participation. Additionally, the study results indicate that implementing a feedback system is crucial for ensuring the accountability of local self-government bodies and the quality of their financial decisions.

The authors received no direct funding for this research.

http://elartu.tntu.edu.ua/handle/lib/47000

2223-3822

Scientific Journal "Socio-Economic Problems and the State"

http://sepd.tntu.edu.ua/images/stories/pdf/2024/24pvvruv.pdf
https://www.undp.org/uk/ukraine/publications/modelyuvannya-efektyvnoyi-finansovoyi-diyalnosti-orhaniv-mistsevoho-samovryaduvannya-oth-v-umovakh-detsentralizatsiyi-0
http://zakon2.rada.gov.ua/laws/show/994_036
https://zakon.rada.gov.ua/laws/show/3428-20#Text
http://zakon2.rada.gov.ua/laws/show/2456-17/print1321257822961676
https://transparentcities.in.ua/study-of-the-work-of-city-councils-during-the-war1

1. Kuzkin Ye. Yu. (2019). Finansove zabezpechennia fiskalnoho prostoru mistsevoho samovriaduvannia [Financial support of the fiscal space of local self-government]. Kharkiv: KhNEU im. S. Kuznetsia; PP «Tekhnolohichnyi Tsentr».
2. Martynenko V. V. (2019). Fiskalna polityka Ukrainy v umovakh finansovoi detsentralizatsii: teoriia, metodolohiia, praktyka [Fiscal policy of Ukraine in conditions of financial decentralization: theory, methodology, practice]. Irpin: Universytet DFS Ukrainy.
3. Pelekhatyi A. O. (2019). Biudzhetna polityka u zabezpechenni rozvytku terytorii: kontseptualni dominanty ta napriamy modernizatsii [Budgetary policy in ensuring the development of territories: conceptual dominants and directions of modernization]. Lviv: Lvivskyi natsionalnyi universytet imeni Ivana Franka.
4. Pershko L. O. (2020). Teoretyko-metodolohichni aspekty zmitsnennia ta rozvytku mistsevykh biudzhetiv v umovakh finansovoi detsentralizatsii [Theoretical and methodological aspects of strengthening and development of local budgets in conditions of financial decentralization]. Chernihiv: NUChP.
5. Shchur R. I. (2019). Finansy obiednanykh terytorialnykh hromad v umovakh detsentralizatsii v Ukraini [Finances of united territorial communities in the conditions of decentralization in Ukraine]. Ternopil: Osadtsa Yu. V.
6. Shubina O., Ovcharenko T. Modeliuvannia efektyvnoi finansovoi diialnosti orhaniv mistsevoho samovriaduvannia OTH v umovakh detsentralizatsii. Konsolidovanyi pidkhid: posibnyk [Modeling of the effective financial activity of local self-government bodies of OTG in conditions of decentralization. A consolidated approach]. URL: https://www.undp.org/uk/ukraine/publications/modelyuvannya-efektyvnoyi-finansovoyi-diyalnosti-orhaniv-mistsevoho-samovryaduvannya-oth-v-umovakh-detsentralizatsiyi-0 (accessed: 2 July 2024).
7. Yevropeiska khartiia mistsevoho samovriaduvannia vid 15 zhovtnia 1985 r. [European Charter of Local Self-Government]. URL: http://zakon2.rada.gov.ua/laws/show/994_036 (accessed: 5 July 2024).
8. Zakon Ukrainy «Pro vnesennia zmin do Biudzhetnoho kodeksu Ukrainy shchodo zabezpechennia pidtrymky oboronozdatnosti derzhavy ta rozvytku oboronno-promyslovoho kompleksu Ukrainy» vid 8 lystopada 2023 r. № 3428-IX [The Law of Ukraine «On Amendments to the Budget Code of Ukraine on Ensuring the Support of the State's Defense Capability and the Development of the Defense-Industrial Complex of Ukraine»]. URL: https://zakon.rada.gov.ua/laws/show/3428-20#Text (accessed: 8 July 2024).
9. Biudzhetnyi kodeks Ukrainy vid 8 lypnia 2010 r. № 2456-VI [Budget Code of Ukraine]. URL: http://zakon2.rada.gov.ua/laws/show/2456-17/print1321257822961676 (accessed: 10 July 2024).
10. Kyrylenko O., Malyniak B., Pysmennyi V., Rusin V. (2015). Planuvannia ta upravlinnia finansovymy resursamy terytorialnoi hromady [Planning and management of financial resources of the territorial community]. Kyiv: TOV «PIDPRYIeMSTVO «VI EN EI».
11. Doslidzhennia prozorosti mist pid chas viiny [A study of the transparency of cities during the war]. URL: https://transparentcities.in.ua/study-of-the-work-of-city-councils-during-the-war1 (accessed: 11 July 2024).

Article

Scientific Journal "Socio-Economic Problems and the State", Vol.31, No.2