FORMATION OF INCOME OF TERRITORIAL COMMUNITIES: POSITIVE CHANGES AND PROBLEMS

Abstract

The purpose of the article is to analyze the formation of income of territorial communities in order to identify current trends, positive developments, existing problems and directions for their solutions. Pre-reform problems of the territorial communities that hampered their development and the inheritance of the part of them by the united communities are given. The features of the formation of incomes of local budgets are presented and the key characteristics of incomes of the united territorial communities are distinguished in comparison with the incomes of other local budgets. The dynamics of own revenues of local budgets has been analyzed and their evaluation by the elements has been carried out. According to the results of the analysis of the three-year period of local self-government reform, the systematic increase in the number of OTGs created and the uniform increase in the volume of the revenue part of the local budgets is justified by all possible sources. It is substantiated that established positive tendencies characterize the efficiency of tax changes (local budgets receive a higher percentage of tax funds mobilized in a certain territory), activation for work of local self-government bodies and increase the state participation through direct support in the development of regions. The emphasis is made on the substantial reduction in amount of subsidies provided, with a significant increase in targeted subventions, which encouraged local communities to make effective use of funds for declared goals. It has been established that, in addition to positive shifts, there are a number of destabilizing factors, such as low GDP growth, inflation, which do not allow to objectively assessing the dynamics of income formation of territorial communities. It is determined that the disincentive of development of certain territorial communities remains unconstitutional and the low level of management of financial revenues of local budgets, which is primarily due to the lack of clear individual development programs, as well as the insufficient level of training of local government employees