TRENDS IN THE FORMATION AND EXECUTION OF LOCAL BUDGETS UNDER MARTIAL LAW
Authors: Vatamanyuk-Zelinska Uliana , Shtunder Iryna , Havryliuk Solomiia 
Published: March 2023

Purpose. The aim of the article is to study the structure and volumes of the revenue and expenditure parts of local budgets of Ukraine in the pre-war period and during martial law, with the determination of indicators of financial security of local budgets and the substantiation of measures to strengthen them in the future.

Methodology of research. In the process of research, methods of general scientific and empirical techniques based on a systemic approach were used. Such methods as: statistical method of data processing, grouping method - to analyse the dynamics of tax and non-tax revenues of local budgets were also used; system analysis, generalization - to assess the financial capacity of local authorities to fulfil the powers entrusted to them; expert method - for interpreting indicators of financial stability.

Findings. It is installed the following:

- a positive trend in the dynamics of the coefficient of concentration of own and fixed incomes, which means an increase in the level of independence of local self-government bodies;

- a decrease in the ratio of the share of transfers in all revenues of local budgets, which indicates an increase in the independence of local self-government across regions;

- normative value of the coefficient of budget coverage, which shows that the local self-government is able to finance its powers at the expense of its own and fixed revenues;

- the negative trend of the deficit ratio of the local budget.

It is argued that in the conditions of martial law, the current values of such indicators cannot be understood as a positive phenomenon. After all, today they are caused by the following negative factors: the "freezing" of special fund expenditures, the curtailment of infrastructure projects, arrears on a number of payments due to the withdrawal of "protected" budget articles during martial law, non-spending of local budgets in territorial communities located in the territories of hostilities. Focused attention on the possible reserve of local budgets, which can be the volume of reverse subsidies, provided they are directed to energy efficiency measures, including for the restoration of energy infrastructure facilities that were damaged as a result of mass shelling. This will contribute not only to overcoming the current challenges of wartime, but also to the post-war reconstruction of the regions that suffered from the aggression of russia.

Originality. Based on the calculated indicators of the financial sustainability of local budgets, steps have been determined that enable local self-government bodies to increase the level of independence of local budgets, improve the quality of provided public services, and accelerate the social and economic development of regions during the war period.

Practical value. The results of the study can be used in the process of forming and implementing the budget policy of the state in terms of redistributing financial resources and directing them to energy efficiency measures within territorial communities.
Key words: local budgets, revenues of local budgets, expenditures of local budgets, consolidated budget, financial stability of local budgets.