ASSESSMENT OF THE IMPACT OF ARMED AGGRESSION ON CHANGES IN THE STRUCTURE OF REVENUES AND EXPENDITURES OF LOCAL BUDGETS OF UKRAINE

Abstract

The article examines the trends and factors influencing changes in the structure of revenues and expenditures of local budgets during the period of martial law in Ukraine. The purpose of the study is to assess the impact of armed aggression on changes in the structure of revenues and expenditures of local budgets of Ukraine and to develop proposals for the prospects of financial support for territorial communities in the period of post-war recovery. Research methods. To achieve this goal, the methods of comparative, structural and statistical analysis were used to determine changes in the structure of revenues and expenditures of local budgets; the methods of systematisation and generalisation were used to reveal the factors that influenced the transformation of budget policy during the period of military operations; the methods of scientific abstraction and prediction were used to substantiate proposals for the prospects of financial support for territorial communities in the period of post-war recovery. Finding. The study found that the war has significantly changed the structure of revenues, with tax revenues declining due to the fall in economic activity, while the role of intergovernmental transfers as the main source of support for local budgets has increased. It has been proven that the main budget-forming taxes for the formation of own revenues of local budgets are the personal income tax and the single tax. A reduction in the share of local budget revenues in consolidated budget revenues (without transfers) and in GDP was revealed. The structure of expenditures has also changed, with security, social protection and infrastructure rehabilitation becoming priority areas. Changes in funding have affected the optimisation of the composition of expenditures, as many funds are directed to immediate needs, and long-term planning is becoming more difficult. Government support is important, as it ensures the functioning of local authorities through subventions and grants. Originality. The originality of the study lies in a comprehensive approach to assessing the financial challenges of territorial communities during the war, which emphasises the importance of local budgets in ensuring the stability and viability of regions in times of crisis.