THE FINANCIAL CAPACITY OF TERRITORIAL COMMUNITIES AS THE MAIN ELEMENT IN ENSURING THE IMPLEMENTATION OF THE POWERS OF LOCAL SELF-GOVERNMENT AUTHORITIES

Abstract

A distinctive feature of the modern world system is the hyperdynamic development and evolution of all spheres of society's life. The rapid development of technologies, globalization processes in the economic and humanitarian spheres, the transformation of worldviews require their adequate adaptation in social processes, as well as in the relations between the state and society. In the context of global trends, the situation of Ukraine has its own peculiarities, since, after the declaration of independence, our state is in the period of formation of a new economic system and a new paradigm of public administration, based on the democratic principles of the social creation process. Since February 2022, the economic, social, and political situation of Ukraine has become extremely complicated. Being at war, Ukraine must solve a number of urgent issues. In particular, and first of all, this concerns the need to finalize the model of local selfgovernment, the distribution of powers (competences) between state authorities and local self-government bodies of different levels, the formation of a system of indicators for assessing the financial and institutional capacity of territorial communities to ensure the fulfillment of the powers defined by law. The assessment of financial capacity is proposed to be carried out on the basis of an integral indicator, which contains a set of indicators based on eleven independent indicators, calculated on the basis of data on the population and indicators of the implementation of the budget of the relevant community. The most optimal option for assessing the financial capacity of territorial communities is defined as the approach developed on the basis of the calculation of 11 indicators and the distribution of territorial communities of Ukraine by quartiles in accordance with the calculated values of the indicators, followed by the determination of the level of community capacity. Assessing the financial capacity of territorial communities is useful for evaluating the effectiveness of the functioning of territorial communities and analyzing their ability to ensure the fulfillment of the powers granted to them, as well as for the formation of state policy regarding the functioning of local self-government.