Financial Capacity of Territorial Communities in the Context of Ensuring the Socioeconomic Development

Анотація

The aim of the article is to determine the economic essence of the financial capacity of territorial communities and to clarify its role in ensuring social and economic development. The article discusses approaches to the economic essence of the financial capacity of territorial communities. The authors disclose the essence of this economic category as the ability of a territorial community to form the amount of budget revenues, which is sufficient and adequate to the expenditure part of the budget, from which the list of public goods and services defined by law, which meet the established national standards and criteria, is financed; also to promote the processes of socioeconomic development of the community. The structure of financial resources of the territorial community is considered. It is determined that it is local taxes and fees that ensure the financial autonomy of local self-government bodies (LSGB). The need to strengthen the fiscal sustainability of the budgets of territorial communities as an element of ensuring their financial capacity is substantiated. One of the directions of implementation of this is to increase the fiscal significance of the property tax by improving the mechanism of its administration. The main determinants of ensuring the socioeconomic development of territories have been identified, the main place among which belongs to financial instruments. The relationship between the financial capacity of territorial communities and the Sustainable Development Goals (SDGs), which can be achieved at the local level, is studied. With the help of the Ishikawa diagram, measures to achieve SDG 8 (Decent Work and Economic Growth) are allocated, including stimulating the employment, ensuring the sustainable growth of the gross regional product, increasing the production efficiency and creating the financial opportunities for economic self-realization in relation to the financial capacity of the territorial community. It is noted that the use of financial preferences in order to stimulate economic activity in a territorial community can in some way reduce its financial capacity in the current period, but is aimed at increasing it in the medium and long term and strengthens the fiscal sustainability of local budgets.

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