Material and financial support for the implementation of the exclusive competence of local councils in Ukraine: theoretical and legal aspect

Abstract

Purpose. The study is aimed at a comprehensive theoretical substantiation and development of a holistic legal model that provides a resource base for municipal authorities to fulfill their fundamental powers. The main focus is on overcoming the existing gap between the legislatively enshrined functions of local governments and their real financial content, especially in the conditions of the legal regime of martial law.

Methods. The work applies to a systematic approach to analyzing the relationship between strategic planning for territorial development and the budget process. The method of comparative legal analysis is used to clarify the meaning of the concepts of "independence" and "autonomy" in the context of European standards. The empirical basis of the study was the results of studying the practice of community activities during 2022–2023, which made it possible to assess the effectiveness of adapting financing algorithms to crisis conditions and identify methodological gaps in the field of program planning.

Results. The study clarified the legal nature of material and financial independence as the right to independent decision-making under one's own responsibility. It was substantiated that the level of real capacity of the authorities directly depends on the share of own revenues in the budget structure. A significant "methodological vacuum" was identified that arose after 2019 due to the lack of uniform rules for developing target programs, which negatively affects the transparency of expenditures. A legal algorithm was formed to legitimize expenditures for defense and civil protection needs: from receiving a request from the military command to adopting the corresponding program and making changes to the budget. The introduction of a four-level system of performance indicators (costs, product, efficiency and quality) as the main tool for controlling the use of public resources was proposed. For small territorial units with limited management apparatus, the feasibility of using a "mixed model" of planning, where strategic priorities are integrated directly into annual budget documents, was substantiated.

Conclusions. It is proven that the modern model of resource provision of communities in Ukraine requires a radical transformation towards strengthening tax autonomy, by assigning them a share of taxes on profit and nature use. The key condition for the successful operation of self-government bodies is strict hierarchical consistency of documents: from a long-term strategy to a specific passport of the budget program. The application of the theory of multi-level governance to improve interaction between the state and communities, as well as research into the impact of digitalization on the management of municipal assets, is identified as a promising vector of further scientific research.