TRENDS IN TAX REVENUES TO LOCAL BUDGETS IN THE CONDITIONS OF FULL-SCALE WAR

Abstract

The study is devoted to the analysis of trends in the formation of the revenue part of local budgets in the context of tax revenues to the general fund in conditions of a full-scale war. The relevance of the study is confirmed by the need to strengthen the revenue part of local budgets to ensure the functions and powers of authorities and local self-government bodies aimed at eliminating the consequences of the war and ensuring a decent quality of life for the population. The goal, objectives and tax mechanisms for the development of the financial sector of Ukraine under the existing geopolitical and macroeconomic conditions are analyzed. The development of municipal finances in the period before the full-scale invasion of the Russian Federation is characterized. Generally positive trends in the formation of the revenue part of local budgets in Ukraine are identified despite the full-scale war. A stable trend of slight growth in revenues to local budgets in 2022-2024 and in the first quarter of 2025 is recorded. Trends in tax revenues to local budgets from the single tax, land payment and real estate tax are analyzed. Trends of moderate growth of revenues to local budgets from the specified tax payments were revealed. The instability of the trend of revenues from personal income tax payments was revealed, and the need to change the regulatory influence to stabilize revenues was indicated. A general conclusion was formed that the identified trends of tax revenues to local budgets under martial law allow predicting a sufficient level of financial stability of communities and ensuring opportunities for the effective exercise of the powers of authorities and local self-government to ensure the basic socio-economic needs of community development. Further analysis of trends in the formation of the revenue part of local budgets should be focused on aspects of non-tax revenues, which will allow obtaining a holistic picture of the problems and prospects for the formation of opportunities for local communities in the post-war reconstruction of Ukraine.