Demianchuk O. Financial potential of balanced development of administrative-territorial units in Ukraine

The dissertation is dedicated to the solution of an important scientific and applied problem - the study of theoretical and methodological principles of balanced development of administrative-territorial units of Ukraine on the basis of their financial capacity and development of practical recommendations for its increase in the conditions of decentralization of financial relations. Based on the methodological study of the process of decentralization as a foundation for the formation of a new system of administrative-territorial units, the concept of administrative-territorial unit is substantiated. Concepts of balanced development of administrative-territorial units in the conditions of decentralization are defined. Within the criteria for ensuring the balanced development of territorial units the main groups are identified. The author determines that only in close cooperation these criteria are capable of ensuring balanced development of the administrative-territorial units of Ukraine. The dialectical essence of the financial potential of the administrative-territorial unit as an important component of the social-territorial system of the country is revealed. The structure of the financial capacity of the administrative and territorial unit has been identified. It is substantiated that the effectiveness of financial potential is realized based on two key components: organizational and managerial potentials. In the course of the study, it is proven that the disparities within the administrative-territorial units are largely a consequence of the structural imbalances of the Ukrainian economy, which manifest themselves in the formation and use of the financial potential of the administrative-territorial units, as well as its components. During the study the economic assessment of the current state of formation and realization of the financial potential of the administrative-territorial units of Ukraine was carried out. The disparities in the development of administrative-territorial units are identified, while key criteria of influencing or reducing these disparities have been specified. The tendencies of formation of local budgets of administrative-territorial units are being analyzed. The paper also determines the management tools of financial potential that can influence their dynamic changes. In the course of the analysis of the level of realization of balanced development of the administrative-territorial units of Ukraine the estimation of the coefficients of balance on all groups of criteria is carried out. A number of latest implemented innovative methods of medium-term local budget planning is outlined. This provided objective data based on which conclusions were drawn about the factors of influence or centroids on the level of community development. Particularly, measures to improve the fiscal mechanism in the management of the financial potential of administrative-territorial units were determined. During the study models for determining significant factors of influence on the financial capacity of united territorial communities and a basic model of balanced development of administrative-territorial units have been developed. It is justified that the introduction of foreign practice of sustainable development of administrative-territorial units with regard to the implementation of development policy and theory of cohesion. This will ensure the creation of an integrated system of instruments to improve the management of the financial potential of territorial units and the level of their balanced development.