HROMADAS` FINANCES MANAGEMENT IN THE FACE OF CRISIS

This article examines the key features of public finance management within hromadas, analysing the current situation and identifying areas for improvement. To ensure the financial independence of hromadas, favourable investment conditions must be fostered, small and medium-sized enterprises must be supported in their development, job creation must be stimulated, and local residents’ income levels must be enhanced. The present study is founded upon a combination of theoretical and methodological approaches. The abstract-logical method was employed for theoretical generalisation and conclusion formulation, enabling a thorough assessment of relevant professional literature. The decomposition method was employed to establish the study's framework, while analysis and synthesis methods enabled a comprehensive examination of public finance management in Ukrainian hromadas. Local finances play a crucial role in economic relations, particularly in the context of decentralisation, which allows hromadas to tailor the provision of goods and services to local needs. However, the management of public finances during wartime poses a unique set of challenges, necessitating a high degree of flexibility, adaptability, and innovation to ensure financial stability and respond effectively to pressing circumstances. Defence and social expenditures frequently extend beyond budgetary allocations, incorporating resources from public-private partnerships, volunteering, crowdfunding, and other alternative funding mechanisms. This complicates the accurate assessment of revenues and expenditures of hromada budgets. In situations of crisis, hromadas have the capacity to redistribute resources in order to mitigate the adverse effects of such situations. The study draws parallels between the financial responses of two distinct groups of regions, distinguishing between those in close proximity to the frontline and those that are more distant. An analysis of hromada expenditures on public order, security, and judiciary functions reveals different spending trends between these groups. The findings obtained underscore the role of hromadas as key actors in GDP redistribution, capable of mitigating crisis effects through strategic resource allocation and financial management. The present study explores the theoretical, methodological and practical aspects of hromada public finance management. It provides a comprehensive analysis of the current financial landscape, the allocation of budgetary funds, and the strategies necessary for maintaining fiscal resilience under martial law. The findings contribute to a more profound understanding of public finance management in crisis conditions, offering insights for policymakers and local government officials.