ANALYSIS OF THE EFFICIENCY OF BUDGET DECENTRALIZATION OF THE TERRITORIAL COMMUNITIES OF POLTAVIA REGION
Authors:   National University ", Kudinov Oleksandr ,   Yuri Kondratyuk Poltava Polytechnic"
Published: August 2023

In the conditions of active European integration, Ukraine needs to carry out a number of reforms in order to meet European standards. In 2015, Ukraine began to actively implement a number of reforms. One of the significant reforms that changed the administrative division of the country was the decentralization reform, which embodies the formation of new territorial associations – united territorial communities. One of the forms of decentralization reform is budgetary (financial) decentralization. The goal of financial decentralization is the formation of independent, independent territorial communities taking into account their natural and labor resources, geographical location, social status, needs and internal capabilities. The article examines the issue of the effectiveness of the use of budget funds on the example of territorial communities of the Poltava region. Five criteria of economic assessment of the use of budget funds were applied to assess the efficiency. According to the results of the calculations, it was found that the reform is effective because most of the indicators have a tendency to improve, however, the share of communities that reach all five criteria to the reference level is quite small. However, the communities to date have not fully used their potential and are currently falling out of favor with sustainable development strategies for the future, therefore, in the coming years, provided that external threats are overcome, it is possible to observe an improvement in the effectiveness of budget decentralization that achieve all five criteria to the reference level is quite small. However, the communities to date have not fully used their potential and are currently falling out of favor with sustainable development strategies for the future, therefore, in the coming years, provided that external threats are overcome, it is possible to observe an improvement in the effectiveness of budget decentralization that achieve all five criteria to the reference level is quite small. However, the communities to date have not fully used their potential and are currently falling out of favor with sustainable development strategies for the future, therefore, in the coming years, provided that external threats are overcome, it is possible to observe an improvement in the effectiveness of budget decentralization. Today, it is possible to observe significant changes in the share of budget implementation by territorial communities of Poltava region. The level of own income is increasing, the level of subsidies is gradually decreasing, albeit at a small pace. However, indicators of expenditures on economic activity remain quite low. Based on the results of the calculations, it was found that out of 60 studied communities, 20% have negative indicators of efficiency, 40% have average indicators, and the other 40% have high indicators. And therefore, there is a low number of communities whose indicators remain at a low level, so they need to modernize the management system in order to catch up with the average national indicators. The current scientific research requires further development, since the communities are young and it is necessary to constantly analyze the results of their economic activity in order to timely identify problematic points, eliminate them and further develop economically attractive territorial communities of Ukraine.