Implementation of local budgets during the period of martial state: New trends and regulations

Local budgets are one of the important components of the national budget system and the country as a whole. They have a significant impact on the solution of national tasks of an economic and social nature, including: financing of industry, energy, agro-industrial complex, infrastructure development, as well as the spheres of health care, education and social protection. The full-scale Russian invasion became a global challenge of modern times for Ukraine, which affected all economic processes of both the country and each individual component. Due to the military aggression of the Russian Federation, local budgets faced the problem of not receiving planned revenues, which became a threat to the implementation of the powers defined by the law. The article is devoted to the topical issues of determining the current state and peculiarities of the implementation of local budgets in the period of economic challenges. Implementation of the state budget for 2022 was analyzed. The growth of incomes, expenses and deficit is determined. The reason for this was military aggression, because foreign grants played a significant role in the formation of budget revenues in 2022, and the largest percentage of financial resources was directed to protection and defense. On the example of Lviv Oblast, the structure of local budget revenues and expenditures was analyzed, and changes in their volumes were considered. Attention is focused on the items of income and expenses that have experienced the greatest reduction and the reasons for the negative dynamics are investigated. Expenditures of local budgets most vividly reflect their importance in the functioning of the local economy, the maintenance of social and cultural objects, the implementation of investment policy, the implementation of social protection of the population, and environmental protection. They reflect the same socio-economic relations as the State budget expenditures, but at the local level and taking into account regional features. It is also highlighted that, despite difficult forecasted circumstances, local self-government bodies are working to attract and increase financial resources, create new jobs, and grow revenues to the budget. This, in turn, will make it possible to quickly adapt to new challenges and ensure the proper level of performance of assigned powers