MECHANISMS OF INTEGRATION OF FINANCIAL POTENTIAL OF TERRITORIAL COMMUNITIES INTO THE NATIONAL ECONOMIC DEVELOPMENT SYSTEM

The purpose of this study is to identify the mechanisms for integrating the financial potential of territorial communities into the national economic development system. The relevance of the research lies in the growing importance of local self-governance and the pressing need to enhance the financial sustainability of territorial communities, particularly in the context of ongoing decentralization processes. As territorial communities gain more financial autonomy, ensuring effective integration into broader national economic frameworks becomes essential. The study employs a systematic analysis, comparative method, and economic-statistical analysis to explore the integration processes, focusing on both institutional and financial mechanisms. These methods allow for a comprehensive examination of the factors that influence the financial potential of communities and how these resources can be effectively mobilized at the national level. The research results highlight key stages and instruments for integrating community financial resources into the national economic framework. In particular, the study identifies the main barriers hindering this integration, such as institutional limitations, inadequate fiscal policies, and regulatory challenges, alongside the fiscal constraints faced by many territorial communities. The study also emphasizes the need for tailored financial instruments that cater to the specific needs of different communities, which vary in size, economic base, and local capacity. The findings suggest that financial capacity-building at the local level requires a comprehensive and multi-dimensional approach, including fiscal autonomy, equitable intergovernmental transfers, and active community participation in budgetary planning and resource allocation. Additionally, the study underlines the importance of fostering transparency and accountability in financial management at the local level. Practical implications of the study include recommendations for policymakers on enhancing financial strategies at both local and national levels, aiming to boost the economic development of territorial communities and improve their long-term financial self-sufficiency. By utilizing these mechanisms and adopting a strategic approach to financial integration, local governments can better align their financial capabilities with national development goals, fostering balanced economic growth across regions. The study also contributes to the growing body of literature on decentralization by offering practical insights into how local financial systems can be structured to support national economic goals. Moreover, the research provides a foundation for future studies focused on optimizing financial resource management within decentralized governance structures, with an emphasis on integrating local communities into broader economic frameworks while ensuring sustainable development and financial resilience.