Local borrowings: opportunities for raising funds for the development and recovery of Ukrainian municipalities

The subject of the study is the attraction of additional sources of funding to fill the revenue side oflocal budgets, through the mechanisms of local borrowing, debt management and the use of modernfinancial instruments in the context of decentralisation and financial sector reform.The purpose of the study is to highlight the existing experience and summarise the regulatoryframework for local borrowing to identify key components and opportunities to increase capitalexpenditures of territorial communities. This also includes adapting current legislation to the needsof communities, using international technical assistance, and developing priority projects that willgenerate additional revenues for local budgets in the future.Research methods. Theoretical methods: to analyse existing literature and regulations governinglocal borrowing and budget planning.General scientific methods: to systematise and generalise the experience of implementingfinancial mechanisms at the local level.Special methods: to develop methodological recommendations and identify practical aspects ofusing local borrowing.Scope of the results. Local self–government and public administration. The results can be used inthe development and implementation of policies to improve the financial capacity of local communities,optimise budget planning and debt management. Research and education using the results by localgovernment and finance professionals, the development of training programmes and research in thefield of local finance and decentralisation.Development of regulatory acts, by using the developed recommendations to improve the legislativeand regulatory framework governing local borrowing, financial management and development ofterritorial communities. Conclusions Attracting additional sources of revenue for local budgets is a keyaspect of local community development. The successful use of local borrowing and modern financialinstruments requires a high level of professional training and close cooperation between researchcentres and developers of regulatory documents.Transparent and planned debt policy, adapted legislation, and effective financial resource managementwill contribute to the sustainable development of communities, increase their financial capacity, andimplement priority infrastructure projects. To ensure equal access to financial resources, it is necessaryto improve the regulatory framework and enhance the skills of local government professionals.