With Facebook officially changed its name to Meta in Oct. 2021, a new stage of digital revolution has begun, as the metaverse has become a new norm of social networks. Blockchain and NFTs, or non-fungible tokens, happened to be the cornerstones of the modern era. The thesis examines the influence of the two technologies on digital market. Key models such as Play-to-Earn and Create-to-Earn are analysed and their impact on virtual commerce is being highlighted. By reviewing the implementing modern ideas and of legal aspects, the thesis forms an idea of how the global economics would look like.
Financial provision of rural territorial communities in conditions of sustainable development is an important aspect of the country's economic and social development. The successful functioning and development of such communities depend on their ability to attract and effectively distribute the financial resources needed to improve infrastructure, education, health care and other vital areas. In the conditions of sustainable development, which involves a balance between economic growth, social well-being and environmental protection, the financial support of rural communities becomes especially important for the preservation of their unique natural and cultural heritage. That is why the purpose of the presented work is to determine the features of financial support of rural territorial communities in conditions of sustainable development. The methods that were used in the formation of the current study are: methods of analysis and synthesis to determine the key aspects of the development of rural territorial communities; methods of induction and deduction to determine the features of the financial provision of territories; method of comparison; logical method; graphical and tabular methods for visual display of research results. Also, as a result of the study, it was proved that the necessity of diversifying the sources of financing is a prerequisite for the financial provision of rural territorial communities. In particular, such communities should actively attract local tax revenues, state support, as well as use the opportunities of international grants and technical assistance programs. At the same time, effective management of resources aimed at the implementation of sustainable development programs, which includes energy saving, development of local businesses and support of environmental initiatives, becomes an important task. In the context of reforming the financial system in Ukraine, financial decentralization is of particular importance, which opens up new opportunities for strengthening the financial independence of rural communities, at the same time placing greater responsibility on them for the rational use of funds. Rural communities can direct the received finances to improve infrastructure, develop social services, support local entrepreneurs, as well as to environmental and energy-saving initiatives.
The article examines the fiscal potential of local budgets in the context of fiscal decentralization in Ukraine. The current state and trends in the development of local finances, the main sources of revenues and expenditures of local budgets are analyzed. Particular attention is paid to the tools for increasing fiscal potential, such as optimization of the tax base, increasing the efficiency of tax administration, attracting investment and intermunicipal cooperation. The main challenges and prospects for the development of fiscal potential in the context of decentralization are identified, in particular, the uneven economic development of regions, dependence on state transfers and the need to increase the transparency of budget funds. It is found that the structure of local budget revenues has changed significantly as a result of decentralization. There is an increase in the share of own revenues, in particular tax revenues, which has a positive impact on the financial autonomy of local communities. The analysis has shown that the main expenditures of local budgets are aimed at financing education, health care, social protection, and housing and communal services. The main challenges for the development of the fiscal potential of local budgets are identified, including uneven economic development of regions, dependence on state transfers, and the need to increase the efficiency of budget resources. A number of measures are proposed to increase the fiscal potential, including optimizing the tax base, improving tax administration, attracting investment, and developing inter-municipal cooperation.
Научная статья посвящена актуальным вопросам финансирования природоохранных мероприятий в современных условиях. Рассмотрены процессы децентрализации управления в сфере охраны окружающей среды, обеспечивающие большую роль региональных органов в управлении природоохранной деятельностью. Показана динамика расходов бюджетов всех уровней на охрану окружающей среды. Выделены государственные программы посвященные охране окружающей среды с соответствующими мероприятиями и финансированием. Доказано, что партнерство между государственными и частными структурами может способствовать улучшению эффективности использования средств, а также разработке более инновационных подходов к решению экологических проблем. Делается вывод и необходимости использования инструментов экономической стимуляции для привлечения частных инвестиций в охрану окружающей среды с целью обеспечения экологической устойчивости между государственным и частным секторами. Отмечена необходимость обеспечения прозрачности использования финансовых ресурсов и их целевой направленности для решения конкретных экологических проблем. The scientific article is devoted to topical issues of financing environmental protection measures in modern conditions. The processes of decentralization of management in the field of environmental protection are considered, ensuring a greater role for regional authorities in the management of environmental activities. The dynamics of budget expenditures at all levels on environmental protection is shown. State programs dedicated to environmental protection with corresponding activities and financing have been identified. It has been proven that public-private partnerships can help improve the efficiency of use of funds, as well as the development of more innovative approaches to solving environmental problems. It is also concluded that it is necessary to use economic stimulation tools to attract private investment in environmental protection in order to ensure environmental sustainability between the public and private sectors. The need to ensure transparency in the use of financial resources and their target orientation to solve specific environmental problems was noted.
The main mechanisms for regulating decentralization processes in Ukraine are studied, including: e-government and digitalization, grant financing and project management, intermunicipal cooperation and cluster development, development of civil society institutions, training and advanced training of business entities, including in the skills of implementing digital technologies in business practice, monitoring and assessing the effectiveness of decentralization through the use of digital marketing tools. It is emphasized that decentralization processes have significant potential for ensuring the effectiveness of regulating the innovative development of the agrarian sector of the economy of Ukraine. However, to achieve success, it is necessary to ensure effective local governance, active community participation and favorable conditions for the development of agricultural business.
The study conducted in this article is devoted to the consideration of topical issues of Ukraine’s achievement of energy decentralization in order to protect the national energy system from crisis processes in wartime, to increase its resilience by developing distributed generation at the local level. The analysis was carried out by comparing with similar local entities in Poland (gmina and poviat) based on the assessment of existing and potential energy sources, as well as the calculation of the energy balance of the territory. The implementation of an effective energy transition project in the city of Ostrów Wielkopolski (operation of low-emission public transport running on local energy obtained through local energy cogeneration) was considered. Based on the results obtained, recommendations are made to similar local communities in Ukraine on the organization of project management, attraction of financial instruments for such a transition, taking into account organizational and regulatory risks. As a practical tool, proposals are made for the organization and creation of a revolving fund as a financial instrument that can partially cover local needs for financing projects aimed at reducing energy poverty in communities, as well as a model for organizing an energy production cooperative for generating electricity using a solar power plant, and an algorithm for project work in communities for the development and implementation of energy decentralization projects.
The aim of the article is to assess the current state and determine the prospects for financial provision for sustainable development of territorial communities of Ukraine in the context of decentralization for the medium-term period of post-war recovery. The article generalizes the legislative grounds for Ukraine’s provision of the Sustainable Development Goals and the need to take them into account in the development of forecast documents; an analysis of the composition and structure of local budget revenues, their share in consolidated budget revenues and GDP for 2019–2023 is carried out; on the basis of expert assessments, the influence of formal rules on the formation of revenues of local budgets, in particular tax ones, is determined; tendencies and prospects of financial provision of sustainable development of territorial communities of Ukraine for the medium term are substantiated. Based on the analysis of the composition and structure of local budget revenues, a reduction in the share of local budget revenues in consolidated budget revenues (excluding transfers) and in GDP has been identified. This trend reached its maximum value in 2023 and is primarily due to a reduction in the volume of interbudgetary transfers. Taking into account the significant burden on the State budget regarding the financing of the defense function of the State and servicing the public debt, the assumption that the trend towards reducing the volume of interbudgetary transfers for the next 3–5 years remains is substantiated. It is proved that the main budget-forming taxes for the formation of own revenues of local budgets are the personal income tax and the single tax. It is noted that the innovations proposed by the government regarding the administration of these taxes may lead to a reduction in revenues to local budgets in the medium term. Scenarios of tax revenues to local budgets are modeled according to various options for changing the base and rates of budget-forming taxes, and the importance of empowering local self-government bodies to influence the process of their administration, as proposed in the National Revenue Strategy 2030, is emphasized. Proposals on the expediency of using local borrowings and local guarantees as sources of additional revenues of local budgets have been substantiated, having previously assessed potential risks regarding the possibility of effective management of local borrowings and taking them into account in the development of long-term budget forecasts. Prospect for further research in this direction is the restoration of medium-term planning of local budget revenues and, in the future, the transition to a long-term time horizon that will correspond to the process of implementing the requirements of the related EU directives.
Ensuring the effectiveness of organizational changes is associated with the need to take into account risks and design actions to prevent the occurrence of conflict situations and overcome resistance to changes, the reasons for which may be the unnecessarily negative reflexive nature of the company's staff's perception of radical transformations. To assess the radicality of structural changes, it is proposed to use a methodical approach to positioning relevant projects in the space formed by integral assessments of the impact of the results of the implementation of such transformations on the organizational level of management, the level of the organization of the production process, and the level of the organization of personnel management. For the proposed scale for assessing the radicality of structural transformation projects, recommendations have been developed for the purposeful use of tools for countering resistance to organizational changes on the example of enterprises implementing construction projects. The main research hypothesis consists in the assumption that increasing the level of project management effectiveness depends on the effectiveness of cognitive mechanisms and is associated with the use of modern concepts of information modeling and integrated project implementation. The necessity of using a selective approach to the organization of planning structural changes has been proven, which is proposed to be carried out by selecting the following types of construction of the appropriate planning system: operational, focused mainly on optimizing relations and connections of units; design, which involves making changes in the principles of structural construction of the enterprise (in the range of choosing between the options of centralization or decentralization); autonomous, based on the support of strategic orientation and adaptive orientation of structural changes as an element of a constantly operating system of adaptation of the enterprise to changes in economic conditions.
Purpose. The purpose is to reveal the theoretical and practical aspects of the implementation and application of blockchain technology in the economic activity of agricultural enterprises, taking into account the economic feasibility of their implementation and determining the system of elements of the implementation of blockchain technology in agriculture. Methodology / approach. The following methods were used during the research: analysis and synthesis, scientific abstraction – when determining the goal and formulating research conclusions; comparative, calculation, statistical and graphic – when evaluating, analyzing, comparing and determining the current state of implementation of blockchain technology in the economic activity of agricultural enterprises. The method of surveying agricultural producers regarding their awareness of blockchain technology and the benefits of its application was also used. The research used: a theoretical approach (based on the analysis of theoretical aspects of blockchain technology and its application in agriculture) and a practical approach (on the basis of the proposed methodology, the economic feasibility of using blockchain technology in the economic activity of an agricultural enterprise was determined). Results. The main areas of influence of blockchain technology in agriculture have been determined. It has been established that every year the amount of funding for the implementation of blockchain technology is increasing, and the reasons are identified. The world experience of implementing blockchain technology in the economic activity of agricultural producers is considered. The results of a survey of agricultural producers of the Mykolaiv and Kirovohrad regions regarding their awareness of blockchain technology and the benefits of its implementation are highlighted. The objective reasons that affect the implementation of blockchain technology in agricultural production are determined and ways of its popularization are proposed. An action algorithm for the introduction of blockchain technology for agricultural producers has been developed. Agricultural producers who are potentially ready and financially able to implement this technology in their activities have been identified. The main factors affecting the cost of implementing blockchain technology in agricultural production have been identified. A methodology for calculating the economic feasibility of implementing blockchain technology according to optimistic and pessimistic options is proposed, and the calculation of the net present value, payback period, discounted payback period of the project, internal rate of return and the rate of return on the example of a specific enterprise of the Mykolaiv region is carried out. Based on theoretical and practical approaches, a system of elements for implementing this technology in agriculture has been developed. Originality / scientific novelty. The novelty consists in the implementation of a comprehensive theoretical study of the problems and prospects of the implementation of blockchain technology in agriculture; for the first time, a system of elements for the implementation of blockchain technology in agriculture was developed; an algorithm of actions for agricultural enterprises that plan to implement this technology was improved; a methodology for calculating the economic feasibility of implementing blockchain technology in an agricultural enterprise was proposed. Practical value / significance. The results can be used in the process of decision-making by business entities regarding the implementation of blockchain technology and the calculation of its economic feasibility, during the optimization of the processes of management of production, financing, supply chains, etc., as well as by scientists, government bodies and other entities that are interested in implementation of blockchain technology in agriculture.
The article analyzes challenges and prospects of development of business activity of territorial communities (hereinafter – TC) in terms of decentralization. Particular attention is paid to the extension of the opportunities for entrepreneurs due to the establishment of TC and in the context of implementation of the European Green Deal. The principal powers concerning support of economic development, solving environmental problems and supply of social services on the territory are delegated to the local bodies. It is a positive aspect, but it requires improvement of human resources of the local governmental bodies to secure efficient use of the provided opportunities. The research substantiates directions of business activation in TC, particularly creation of favorable environment for enterprises development at the state level, supply of broader access to financing for small and medium-size enterprises, simplification of tax administrating for small and medium-size enterprises, promotion of business culture and development of business skills and sustainable thinking, support for internationalization and greening of small and medium-size business, improvement of competitive capacity and innovative potential of enterprises. The work suggests a model of efficient management of business activity of territorial communities. The authors define the principal criteria for setting local taxes and charges at the level of community. The research also marks the problems that have a negative impact on business development of TC, particularly, restraints for business running, development of local infrastructure, and employment of population. The article specifies the reasons and factors of the obstacles appearance and proposes the ways for them overcoming.
The article is devoted to the study of the basics of the development companies' integration into the virtual assets market as a component of their economic potential growth in the context of the digital transformation of Ukraine. The article proves the role of development companies in the digitization development of the construction industry of Ukraine. The current state of Ukrainian legislation regarding digitization and the virtual assets market was considered, the analysis of which allowed to single out the virtual assets’ application areas in the operational activities of development companies, in particular, investment activities and marketing communications. The application areas of secured virtual assets are defined and the concepts of construction products tokenization are considered. The issue of entering smart contracts by the development company on Blockchain technology using secured virtual assets was investigated. Particular attention is paid to the construction of the development company metauniverse with a hierarchical structure in the form of non-fungible tokens (NFTs) sets of different levels. The relationship between the growth of the development project metauniverses and the implementation of BIM technologies in the design of real estate objects is proven. A universal concept of metauniverse construction of development company that implements residential construction projects has been developed. With the help of artificial intelligence technologies, conceptual views of non-fungible tokens at the level of the development company, development project (housing complex), individual multi-story residential buildings, individual apartments in these buildings, as well as individual stages of real estate development have been created. The main features of the created tokens are described concerning the corresponding characteristics of particular real estate objects. A scheme for integrating the real estate development process into the virtual asset market has been developed concerning the stages of the real estate object's life cycle. The prospects for the growth of development projects metauniverses after the introduction of "real" real estate objects into operation are determined, in particular, through the introduction of PTE technologies.
The article examines the possibility of increasing the attractiveness of international investments in the Ukrainian solar industry. The nature of alternative energy concepts is studied. A significant place of alternative energy sources in the general system of electricity production. The potential of using solar energy in Ukraine was assessed. The feasibility of using blockchain technology in energy. The advantages and disadvantages of using smart contracts in solar power plant projects to improve the innovation climate in the solar energy sector of Ukraine have been identified.
Financial provision is one of the important elements of community resource provision. There is quite a number of bases of financial resources that territorial communities can take from, therefore, for their effective use, it is advisable to classify them, establish the appropriate features, and the possibilities of use them rationally. Currently, it is important for communities to be able to form the necessary amount of financial resources that will allow them to be financially capable. Also important is the legally defined powers of communities within which they carry out their activities and use accumulated funds. The publication analyzes the peculiarities of the formation of financial relations in territorial communities of Ukraine. The corresponding shortcomings in shaping the financial capacity of communities are singled out. The sources of filling the community budget are analyzed. It is found that today the majority of territorial communities need to provide appropriate investment financing of their projects for their sustainable development. Sources of filling financial resources of territorial communities are identified. It is proved that the main financial source of the territorial budgets is the activities of small and medium-sized businesses located in communities. It is determined that for the effective implementation of measures for the socioeconomic development of communities, the principle of their autonomy in matters of budget and tax activities should be implemented. The main directions of influence of financial decentralization on the socioeconomic development of the regions is formed. Based on the identified directions of development of territorial communities, the importance of public participation in decision-making on the implementation of projects on sustainable development of communities is determined. The need to form a favorable image of the territorial community, thanks to which it is possible to attract investment funds for the implementation of community development projects, is proved.
Petimat Gekhaeva, Elimhazhi Bolotkhanov, S Ismoilova
In recent years, the financial sector has been a leader in digital transformation. An additional driver of its accelerated digitalization was the COVID-19 pandemic, which contributed to the active spread of mobile banking, contactless payments, digital services for managing investment portfolios, etc. The largest banks and insurance companies play a leading role in the digitalization of financial services. New fintech companies have emerged both within large banking ecosystems and as stand-alone start-ups providing financial services on their own. The digital transformation of the financial sector is based on the integration of distributed ledger systems, cloud technologies, big data analysis and AI. As a result of the use of digital technologies, new business models are being built. For example, the Open Banking system, which is based on API (Application Programming Interface) technologies and is designed to exchange information necessary for the development of financial products and services, has become widespread. Such a system allows non-financial organizations to offer financial products and services personalized to the needs of a particular client.
Open access
Digitalization and Economic Development in Agriculture
Vasyl A. Holian, Nataliia Medynska, Liudmyla Kolosa, Oleksandr S. Zamlynskyi
It is substantiated that under wartime conditions, formation of a new global nature protection architectonics and decentralization of power, the solution of ecological problems of socioeconomic development passes into a new financial and investment dimension, which requires diversification of sources of financing of capital investments and current costs in environmental protection. It is determined that in the dynamics of the nominal amount of financing of capital investments and current expenditures in environmental protection in the context of the main nature protection measures in 2000–2020, in general, there is an upward trend, which is caused by inflation-devaluation processes, rather than a real increase in assignations to environmental projects both in the public and corporate sectors. It is identified that in 2000–2020 there was a significant difference between the amounts of financing of capital investments and current expenses in the direction of increasing the amount of financial support for the operation and maintenance of environmental infrastructure, rather than their renovation and modernization. It is substantiated that the chronic deficit of financial and investment support for solving ecological problems is caused by excessive unification of sources and methods of financing the renewal of the network of environmental infrastructure objects and rationalization of the use of natural raw materials, which requires diversification of fiscal, budgetary and credit investment instruments of the environmental protection industry. It is determined that increasing investment flows in the environmental sphere of Ukraine depends on the inclusion in the range of priorities of the national environmental policy of the dominants of international environmental conventions, primarily the New Climate Agreement, which will allow obtaining financial preferences from global environmental funds and foreign governments. It is substantiated that the intensification of environmental activities at the level of local self-government will become possible due to an increase in the share of deductions of the natural resource rent and environmental tax to special funds of budgets of territorial communities, which will ensure targeted linking of eco-resource payments to solving the most pressing ecological problems of territorial entities
The purpose of the article is to identify the risks of agricultural development in Ukraine in the context of wartime, to substantiate the economic consequences of the impact of the Russian invasion and the introduction of martial law on the logistics system in the agrarian sector. In the context of the carried out study, the problems faced by agricultural producers in the context of the wartime situation in Ukraine (problems caused by the occupation and hostilities in a large part of the country; disruption of food supply chains and resources necessary for agricultural work; problems for the development of agricultural production as a result of the financial crisis; problems caused by the development of the energy crisis) are identified and systematized. Risks to the agricultural producers’ activities are identified (reduced supply and demand for food products; reduced liquidity of agricultural producers, difficulty in accessing financing; undermining of agricultural land and damage to crops as a result of hostilities; difficulty in purchasing seeds, breeding livestock and poultry, fertilizers, machinery, fuel and lubricants; disruption of value chains and logistics chains; shortage of labor in the agrarian sector). The article emphasizes the ways to mitigate the risks in the context of implementing mechanisms for preventing and/or overcoming such problems by establishing cooperation between Ukraine, the EU and international organizations. The author substantiates the need to change approaches to the further development of the agricultural sector in the areas of development of «short» value chains and logistics, to focus on the decentralized local food production systems, adaptation of conditions and traditions of agriculture to new conditions. Prospects for further research lie in a detailed analysis of the advantages and disadvantages of agricultural development in Ukraine, taking into account the elaborated guidelines.
Conceptual foundations for financing high-risk innovative projects based on the integration of financial theory, innovation theory, and risk management are substantiated. Specific characteristics of such projects are identified: information asymmetry between participants, J-curve cash flows, risk concentration at early stages, and the absence of tangible assets as collateral. Theoretical approaches to financing in the context of economic paradigm transformation are systematized. Current trends in the development of alternative capital attraction mechanisms based on digital technologies are analyzed: blockchain instruments (ICO, STO, IEO), crowdfunding platforms, smart contracts, and decentralized autonomous organizations. The specifics of forming a multilevel financing architecture using different types of financial instruments according to the stages of the innovation cycle are studied. The necessity of a comprehensive approach to financing high-risk innovative projects through the formation of a multilevel system that combines traditional and alternative sources of capital is proved. Strategic diversification of financial instruments allows balancing the interests of founders and investors, optimizing capital structure under uncertainty. Promising development directions are identified: formation of integrated financing ecosystems, transformation of state innovation support policy, institutionalization of meso-level structures, integration of ESG criteria, and development of artificial intelligence technologies to improve the accuracy of project potential assessment. The practical significance of the research lies in forming a conceptual basis for modernizing the financial support system for high-risk innovative projects through developing specialized financial instruments and risk assessment methods that account for information asymmetry and J-curve cash flows
Анатолій Карпук, Vasyl A. Holian, Rostyslav A. Butsenko
It is substantiated that the main capital of forestry economy includes the technical-technological, production-economic and natural-resource components, which requires the formation of a modern model of ecological and economic regulation of its reproduction to prevent the processes of exhausting and unbalanced forest use. It is determined that at the present moment the decisive influence on the paces, proportions and scale of reproduction of the main capital of forestry economy is exercised by the processes of European integration, digitalization and decentralization, which to some extent is reflected in the State Strategy for Forest Management of Ukraine until 2035. Studies have shown that in 2013–2021 in the dynamics of most articles of capital expenditures for the purchase of production equipment, cars, devices, machinery and mechanisms, there is an upward trend, owing to both the real growth of capital investments and devaluation-inflationary processes. It is revealed that in 2013–2021 there is a reduction in total capital expenditures for the purchase of road construction equipment, which reduces the ability of permanent forest users to develop a network of forestry roads. It is substantiated that deepening the digital transformation of the forest management system and the movement of forest products requires an increase in capital expenditures in the acquisition of modern software and other information and digital technologies, which will lead to an increase in the share of intangible assets in the structure of main capital of forestry economy. It is found that in recent years certain institutional prerequisites have been formed for diversification of sources of financial and investment support for the reproduction of fixed capital of forestry economy due to an increase in the volume of bank lending and additional attraction of foreign investments. It is proved that a perspective institutional form of diversification of sources of financing for the reproduction of main capital are public-private partnership agreements, which will ensure the consolidation of resources of the public and corporate sectors to accelerate the processes of expanded reproduction and economic development of the forest resource potential of the country.
Информатизация затрагивает различные стороны человеческой деятельности, в частности сферу образования.Если в начале этого процесса основной задачей информатизации являлась автоматизация документооборота и управленческой деятельности (менеджмента образования), то в настоящее время акцент смещается в сторону автоматизации и упрощения деятельности преподавателя.В статье рассматривается автоматизированная система, позволяющая повысить объективность контроля качества обучения путем предоставления преподавателю показателей объективного контроля прохождения образовательного мероприятия и самостоятельности выполнения заданий обучающимися, а также информации о других показателях, которые могут быть использованы для валидации оценки.В работе приводится структура интеллектуальной системы и ее особенности.Авторы предлагают классификацию признаков качества обучения на ретроспективные, подлежащие анализу с помощью методов искусственного интеллекта, и оперативные, контролируемые программно-аппаратными методами с помощью системы датчиков.В
Yuriy Ivanov, Olga Ivanova, O. Y. Poliakova, Viktoriia Shlykova · 5 authors
The article is devoted to solving the urgent problem of the spatial development of territorial communities on the basis of self-sufficiency and self-financing. The purpose of the article is to develop a methodology for substantiating the directions of development of territorial communities based on the ability of territories to self-development, taking into account resource availability, management capacity, financial capacity, and types of territorial community in the context of fiscal decentralization. The objectives of the study are to substantiate the priority directions of territorial communities' development; substantiation of the criteria for choosing the directions of territorial communities' development depending on their types; determination of directions depending on the components of self-development of territorial communities: self-government, self-sufficiency and self-financing on the basis of fiscal decentralization.A methodological approach to determining the priority directions of stimulating the development of territorial communities has been developed. It provides for the consistent development of methodological approaches to the analysis of resource endowment of the territory, identification of problems of development of territorial communities; modeling of the development of territorial communities based on the method of fuzzy sets; substantiation of the directions of the spatial development of territorial communities by the method of hierarchy analysis.It has been established that the spatial development of territorial communities foresees: the availability of natural, labor, production, environmental and other resources, the effective use of which leads to the formation of new and strengthening of existing advantages of the community; the formation of community development zones is impossible without the presence of effective organizational and management mechanisms in the community; the availability of a resource base for development and effective management mechanisms does not ensure the development of the territory without financial support. It is important to form own financial resources through development projects or through the cooperation of territorial communities. It is proved that self-sufficiency, self-government, and self-financing are the main components and at the same time conditions for the spatial development of territorial communities. The resource base of the territorial community is a sufficient condition for development, but the inefficiency of its management leads to a decrease in the self-sufficiency of the territory and reduces the financial capacity of the community.
The implementation of state regional policy is closely interconnected with the reform of the administrative and territorial system, fiscal decentralization, development and stimulation of the competitive foundations of the economy, strengthening the role of local self-government. The purpose of the study is to justify the implementation of state regional policy to solve the problems of financing regions and territorial communities in conditions of decentralization. The article examines how the mechanism of state support for regions has changed, which led to the need to review approaches and principles of state regional policy formation. It is substantiated that the creation of a new regional support tool – the State Fund for Regional Development (SFRD) should contribute to the development of territorial communities. It has been established that the effective functioning of the DFRD allows financing of regional development projects to be initiated in Ukraine on a competitive basis and in accordance with regional development strategies and action plans for their implementation.
Current decentralization and reform of the administrative and territorial structure of Ukraine, the issue of overcoming inequalities and disparities of territorial development in Ukraine by building an effective system of financial management for united territorial communities (UTCs) as basis for territories’ and country&s;s sustainable development becomes especially relevant. In the analysis, general scientific methods (analysis and synthesis, induction and deduction) and special methods of phenomena and processes analysis (abstraction, econometric and econometric-mathematical modeling) have been used. The study analyzes the effectiveness of intergovernmental fiscal relations system and income distribution within the united territorial communities in the context of inequalities and imbalances as a threat to the territories’ and country&s;s sustainable development. It has been proved that the current system of fiscal equalization of receipts and expenditure has some disadvantages related to basic and reverse subsidies. It has been proposed to determine the maximum allowable limits of reverse subsidy in relation to income growth rates per one UTC&s;s resident applying the logistical curve. Marginal value of the subsidy has been identified. 124 Current system of united territorial communities’ expenditures, which includes financing of education, culture, health care, social protection, housing and communal services, and infrastructure development has been analyzed in the study. It has been shown that in the current legal framework regarding united territorial communities, there are no effective guarantees of optimal, balanced budget allocation between UTCs settlements—members. To overcome current disparities in expenditure distribution of a UTC budget, it has been proposed to use economic and mathematical model based on the first-order differential equation, which allows to consider both the dynamics of UTC per capita income and changes in its population.