DEVELOPMENT OF FRONTLINE TERRITORIES THROUGH FISCAL POLICY TOOLS

Abstract

Shulyk V.O. DEVELOPMENT OF FRONTLINE TERRITORIES THROUGH FISCAL POLICY TOOLS

Purpose. The aim of the article is to outline the main problems of implementing fiscal policy in the context of ensuring the recovery of the frontline regions, to analyse the existing limitations of the usual mechanisms and to propose solutions to strengthen the capacity of territorial communities.

Methodology of research. In the course of the research, general scientific and special methods were applied, in particular: analysis, synthesis, and generalization were used in working with statistical data on the formation of revenues and expenditures of local community budgets, as well as individual indicators of social and economic development of regions; the monographic method was employed in studying literary sources on issues related to the research topic. Additionally, the analysis of structural changes and shifts was utilized, along with comparison methods and graphical analysis, to evaluate the application of individual tax and budget instruments.

Findings. The vulnerability of local budgets in the context of their own revenue sources under martial law and the expected change in fiscal policy was assessed in the article. The key legislative initiatives in the context of taxation and intergovernmental relations since the beginning of the large-scale Russian invasion were analysed in the article. The restrictions that have the greatest impact on the formation of the resource base of local budgets and the possibility of financing regional development projects from budgetary funds were identified. The existing fiscal model was analysed.

Originality. The necessity to change approaches to the application of budget and tax mechanisms in the territories most affected by the war was established; a new approach to grouping territories was proposed, where it is recommended to apply exceptions to the unified approaches for Ukraine regarding the implementation of budget and tax policy.

Practical value. The results of the study will allow assessing the key needs and risks of implementing fiscal policy in frontline communities, adapting models of interaction between fiscal actors to the challenges of the present and future. The study can be used by researchers to build models for the restoration of frontline communities, minimize losses for budgets and prevent economic losses in the formation of fiscal policy in terms of the tax base, tax rates and powers.

Key words: fiscal policy, taxes, government budget, local budgets, regional development, tax revenues, taxpayers, tax preferences.