Distribution of local expenditure for sustainable development of united territorial communities (economic and mathematical approach)

Анотація

The paper analyzes current expenditure system of united territorial communities, which includes funding of education, culture, health care, social safety net, housing and community amenities, infrastructure development, which together ensure territories` sustainable development. It has been proved that the current system of local finances` management does not support their sustainable development and does not introduce viable mechanisms for the effective expenditure distribution inside united territorial communities (UTCs) between the settlements within them. The following arguments have been shown: UTCs include settlements characterized by different population size and income per capita. Due to migration processes the population size is unstable. The model of expenditure distribution between settlements of UTCs for provision of public goods using a system of linear homogeneous difference equations, taking into account national economy specifics has been proposed based upon foreign experience. It has been proposed to calculate the population size at certain time intervals, taking into account the expected (planned) changes of each settlement` s population within UTCs and to distribute programmed expenditure for providing public goods within territories` sustainable development capacity.

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