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Budget Revenues as a Means of Ensuring the Financial Stability of Communities

Author

Listed:
  • Zoriana Lobodina

    (West Ukrainian National University, Ternopil, Ukraine)

  • Yurii Lushnei

    (West Ukrainian National University, Ternopil, Ukraine)

  • Ruslan Lobodin

    (West Ukrainian National University, Ternopil, Ukraine)

  • Yurii Chernyshenko

    (West Ukrainian National University, Ternopil, Ukraine)

  • Yaroslav Kiveliuk

    (West Ukrainian National University, Ternopil, Ukraine)

Abstract

The financial stability of territorial communities is a key condition for their sustainable socio-economic development. In this context, budget revenues are of particular importance, as they act as the main instrument for forming community financial resources and determine the level of their budgetary autonomy. This study aims to substantiate the theoretical foundations of the formation of community budget revenues as a tool for ensuring their financial stability. The article analyses practice and identifies the main problems of filling community budgets in the context of challenges related to the war. The methodological basis of the study is the dialectical approach, structural-logical analysis, comparative analysis of budget indicators, and graphical interpretation of data. In drawing their conclusions, the authors draw on the principles of fiscal federalism, public choice, and institutionalism. The results of the study show that, between 2021 and 2024, the absolute volumes of community budget revenues increased; however, their share in GDP and in the Consolidated Budget of Ukraine's revenues decreased due to the increased centralisation of resources in the state budget. The results of the regional comparison demonstrate a high level of fiscal autonomy of economically developed and relatively safe regions. Such changes indicate stable tax revenues, structural diversification of the economy, and effective use of financial instruments for the socio-economic development of communities. In contrast, in frontline communities, there is a sharp increase in transfer dependence, which is a natural consequence of military operations. Measures to improve the mobilisation of own and target revenues into community budgets include expanding the tax powers of local governments, combating the shadow economy, increasing the efficiency of tax administration by tackling corruption, and utilising digital technologies in working with taxpayers. In addition, given the significant role of transfers as a source of budget revenues in ensuring the financial stability of communities, it is advisable to develop new approaches to reforming transfer policy.

Suggested Citation

  • Zoriana Lobodina & Yurii Lushnei & Ruslan Lobodin & Yurii Chernyshenko & Yaroslav Kiveliuk, 2025. "Budget Revenues as a Means of Ensuring the Financial Stability of Communities," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 54-63, December.
    • Handle: RePEc:iaf:journl:y:2025:i:4:p:54-63
    DOI: 10.33146/2518-1181-2025-4(110)-54-63
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    References listed on IDEAS

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    1. Serghiy Radynskyy & Vadym Ratynskiy & Nataliia Diachenko & Valentyn Diachenko & Andrii Krupka & Zoryana Lobodina & Halyna Pohrishchuk & Nataliia Dobizha & Svitlana Shpylyk & Vladyslav Bendiuh, 2024. "Improving the financing mechanism for the development of local communities based on the use of digital technologies," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 2(13 (128)), pages 35-46, April.
    2. Jorge Martinez-Vazquez & Santiago Lago-Peñas & Agnese Sacchi, 2017. "The Impact Of Fiscal Decentralization: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 31(4), pages 1095-1129, September.
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    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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