SPECIFIC FEATURES OF FINANCING THE EXPENDITURES OF TERRITORIAL COMMUNITY BUDGETS UNDER MARTIAL LAW

The article presents theoretical provisions and practical recommendations for optimizing the expenditures of territorial community budgets under martial law. The study aims to increase the efficiency of budget resources management, ensure the financial sustainability of communities, and support their socio-economic development. It is revealed that since 2022 there was a significant increase in territorial community budget expenditures. In the context of the full-scale invasion of Ukraine by the Russian Federation, budget expenditures of territorial communities ensure the basic needs of the population and providing social, educational, medical and other public services. The increase of territorial community budget expenditures was driven also by the need to restore local infrastructure, provide social assistance and humanitarian support, support internally displaced persons (IDPs), and address other challenges of full-scale war. The study concludes that the specifics of financing budget expenditures of territorial communities under martial law require local governments to take action to optimize budgets, prioritize financing of critically important areas, attract government transfers, international aid and grants, control the use of loans, flexible planning, redistribution of budget expenditures, use of electronic monitoring systems, public control etc. Despite wartime, the relevant issue for Ukrainian government is to complete the decentralization reform, in particular, updating the list of functions, including economic and social, that will be transferred to the local government authorities for financing by its local budgets expenditures. Designing state and local government human resource programs will enhance the competence of local authorities’ managers, thereby accelerating the socio-economic recovery of these territories. Thus, the implementation of these practical recommendations will ensure the improvement of the efficiency of financing territorial community budget expenditures during a period of wartime challenges and prolonged uncertainty.