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18FORMATION OF THE REVENUE BASE OF THE BUDGETS OF THE UNITED TERRITORIAL
COMMUNITIES
Vdovenko L.,
Doctor of Economics, Professor of the department offinance,
banking and insurance, Vinnytsia National Agrarian University
Titov D.
postgraduate student, assistant of the department offinance,
banking and insurance, Vinnytsia National Agrarian University
Abstract
The article is devoted to analyzing the profitability of the united territorial communities in the context of the implementation of the reform of decentralization of public administration. The essence of the concept of "financial capacity of the territorial community" is investigated. The indicators of development of the united territorial communities are analyzed and identified major financial sources from which the communities can earn the income and suggested new sources that are currently unknown or not used at all. This scientific study serves both as a practical and theoretical example of forming the financial capacity of communities and will enable them to optimize the process of filling local budgets with sufficient funds needed for their normal functioning and development.
Keywords: united territorial community, decentralization, local self-government, budget decentralization, deconcentration, delegation, devolution, own revenues, local budgets, general fund of local budgets.
Formulation of the problem. In recent years, Ukraine has undergone fundamental changes in the system of local self-government in terms of local budgets, aimed at creating united territorial communities with the possibility of expanding sources of financial resources, which is a stimulus for rural development.
The main problem of the united territorial communities (UTC) in the conditions of transformational changes in the economy is the provision of sustainable budget revenues. Financial security and fullness of community budgets is a guarantee of socio-economic stability and a guarantee of regional development. For most communities, the ability to effectively attract investment or obtain consistently high revenues to the local budget is problematic, so the urgent issue is to find new sources of income, optimize existing ones and increase their financial capacity in the future.
Analysis of recent research and publications.
Problems of forming the financial capacity of united territorial communities in Ukraine are studied by such scientists and practitioners as O. Artyukh, O. Vasylyk, O. Getmanets, O. Kyrylenko, V. Kravchenko, O. Kuzmenko, O. Moroz, V. Nikolenko, A. Nesterenko, A. Nechay, O. Orlyuk, K. Pavlyuk, V. Plaksienko, O. Suntsova, N. Tkachenko and others. The purpose of the article is to study the problematic issues regarding the formation of the financial capacity of the united territorial communities and the assessment of the main sources of income, due to which their financial capacity will contribute to the development of the regions.
Presentation of the main research material. The effectiveness of the decentralization reform process in Ukraine requires the formation of an effective socio-economic mechanism for the development of
united territorial communities that are financially viable in the future.
Therefore, first of all we should pay attention to the interpretation of the concept of "financial capacity of the territorial community", which, in our opinion, means the ability to ensure sustainable economic growth, improve financial and social well-being of its inhabitants and be economically competitive by using available financial resources guaranteeing financial freedom and stability of development of territorial communities. Therefore, the main reason for community associations at the level of settlements, villages and cities is to achieve the ability to function more effectively in the financial, social and economic environment. After all, given the underdevelopment of the regions and the low availability of all the necessary resources of communities, it becomes almost impossible for individual communities to develop independently at the same level as the communities that came together. The association itself opens new horizons of opportunities, the system becomes complementary and stronger, within the UTC some communities stimulate the development of others, and the formation of a joint budget allows to dispose of such financial resources that would be sufficient not only to support the economy within the UTC at a certain level, but also to start forming an economic system capable of developing itself, avoiding excessive bureaucracy and corruption in the distribution of budget funds.
Decentralization reform began in Ukraine in 2014. As of January 1, 2020, were created 1,029 united territorial communities, the financial capacity of which is determined by their own revenues in the general fund of local budgets (Fig. 1).
Fig. 1. Own revenues of the general fund of local budgets, UAH billion Source: generated by the authors based on [1]
In 2019, the amount of own revenues amounted to UAH 267 billion, which is UAH 32.9 billion, or 14.1% more than in 2018. Since the beginning of the reform of financial decentralization, local budget revenues show a rapid positive trend and they have grown by UAH 198.4 billion. This increase in revenues suggests that the reform has a positive impact to
Fig. 2. Sources Source: generated by the authors based on [2]
The first and main source is the revenue part of the budget, which can be formed at the expense of internal budget resources (taxes and fees, lease of land and real estate in communal ownership) and external budget resources (subventions, targeted programs and transfers received from the state budget).
Assessing the receipts of taxes and fees to the budgets of the united communities in 2017 showed that amendments were made to the Budget Code of Ukraine, which determined the rates of crediting taxes and fees to the budgets of the united territorial communities and today they are as follows:
- the amount of excise tax (Ei) to be credited to the general fund of the relevant local government budget is determined by the following formula (1):
Ei=E*SL (1)
where A is part (13.44 percent) of excise tax on fuel produced in Ukraine and part (13.44 percent) of excise tax on fuel imported into the customs territory of Ukraine, which are subject to distribution between local government budgets;
Si - share for crediting to the general fund of the i-th local government budget (it is determined separately for each region, according to the resolution of
build the financial capacity of communities, so further revenue growth, finding new sources and optimizing existing ones is a necessity today.
There are four main sources from which the united territorial communities can receive income and from which they form their financial capacity (Fig. 2).
the Cabinet of Ministers of Ukraine "Some issues of crediting part of the excise tax on fuel produced in Ukraine and imported into the customs territory of Ukraine in 2020");
i - an index to indicate the relevant local government budget [3].
- 3 percent of the rent for the use of subsoil for the extraction of oil, natural gas and gas condensate (except for the rent for the use of subsoil within the continental shelf and / or the exclusive (marine) economic zone of Ukraine) to the budgets of the united territorial communities [4];
- 60% of personal income tax is credited;
- 100% property tax (real estate, land, transport) is credited;
- 100% of the single tax is credited;
- 100% of excise tax on retail trade is credited;
- 100% of the income tax of communal property institutions of the united territorial community is credited;
- 100% of payments for the provision of administrative services are credited;
- 25% of the environmental tax is credited [5].
Sources of income of UTC
of income of UTC
By making these changes to the Budget Code of Ukraine, it was possible to significantly increase the share of local taxes and fees in own revenues of local
budgets, which usually allows for the formation of financial independence for communities (Fig. 3).
Fig. 3. Share of local taxes andfees in own revenues of local budgets (general fund),% Source: generated by the authors based on [1]
Analysis of the structure of revenues to the general fund of local budgets of UTC for the first half of 2019 shows that the largest share is the income from personal income tax, it shows how important this tax
3,5
In monetary terms, the amount of tax revenues to the budgets of the united communities in 2019 amounted to UAH 27,245.5 million of which personal income tax UAH 16,261.2 million, excise tax UAH 1,887.0 million, and local taxes and fees UAH 9,097.3 million of which the land tax is UAH 4,218.2 million, the single tax is UAH 3,930.2 million, and the real estate tax is UAH 948.9 million. It is safe to say that this amount of revenues to local budgets is positive. will affect the process of implementation of socioeconomic development programs developed by communities and allows to ensure the well-being of its population.
In particular, it should be noted that the increase
is to fill the budgets of UTC and this despite the fact that only 60% of it is credited to the local budget, and 40% to the state budget (Fig. 4).
tax
in personal income tax revenues is due to the legalization of wages, positive trends in income growth of low-paid groups due to increased minimum social guarantees and wage growth in general. In addition to the positives, there are also negative trends in the taxation of personal income, which accordingly reduces the level of tax revenues, in particular: understatement of taxable income by taxpayers and tax evasion (high level of tax burden on the wage fund leads to informal agreements on the division of wages into formal and informal); crediting the personal income tax to the relevant local budget at the place of registration of the legal entity; reduce the tax base by lowering the overall level of income of the working population and
PIT
Excise tax Single tax Land tax Real estate
Fig. 4. The structure oftax revenues to the generalfund of local budgets of UTC in 2019, % Source: generated by the authors based on [1]
deepen poverty.
The second largest source of revenue for local budgets is traditionally the payment for land. This is due to the fact that communities have a large number of lands from which they receive income, especially after the unification of the community increases the impact on agricultural relations, which increases the financial security of the united territorial communities, also simplifies the procedure for obtaining for legal entities and individuals land plots in ownership and use, on which buildings, structures, other real estate objects are located, the ownership of which is registered by the purchaser of the land plot, also important is that the community provides effective control over land use and protection [6].
Also a significant tax that fills the budgets of communities is the excise tax. Territorial communities, on the territory of which are located mainly gas stations, receive a stable source of income. However, the system of administration of this tax is inefficient with an insufficient level of control over the activities of business entities - taxpayers. Thus, regardless of the form of settlements for the purchase of excisable goods to end consumers for its use for noncommercial purposes, the settlement document on the basis of which the excise tax is calculated, is a receipt, commodity or cash receipt. Since, according to the law, in places where retailers sell excisable goods, it is mandatory to have an electronic cash register or ledger of settlement transactions, clear and effective control over the payment of this tax is impossible due to the high risk of incorrect presentation of information and concealment of income. The reason for this is the optional use of an electronic sales accounting system, which minimizes the impact of the human factor on the reporting process. The main problem of excise tax on the sale of excisable goods by economic entities is to stimulate the growth of socio-economic differentiation of the development of territorial communities due to the uneven location of places of sale of petroleum products and other fuels and lubricants [7].
The inclusion of a single tax in local taxes has led to an increase in the share of local taxes and fees in the structure of local budget revenues. Therefore, one of the most important local taxes and fees was a single tax. This growth was mainly due to an increase in the number of individuals and small businesses.
Taxes and fees related to environmental pollution are a significant source of filling local budgets. Thus, one of the innovations of the Tax Code of Ukraine was the introduction of an environmental tax instead of collecting for environmental pollution. The tax is paid when purchasing fuel for vehicles.
In the future, the main source of filling local budgets should be real estate tax. Its base is expanding due to the involvement in the taxation of commercial property. However, the procedure for its accrual and payment does not correspond to the practice of developed countries, where the amount of tax depends on the value of real estate, and not on living space, as defined by current legislation of Ukraine. Therefore, it is necessary to make appropriate amendments to the Tax Code.
In addition, the possibility of significant revenues for local needs from the introduction of real estate tax for rural areas is questionable. Because in the context of the economic crisis and the rapid impoverishment of peasants, such initiatives are doomed to failure. Exept this, local governments should have the right to independently introduce their own local taxes and fees on their territory, taking into account the specifics of the territory and the potential objects of taxation available there. It is also necessary to improve the mechanisms of cooperation and interaction of business entities with the tax authorities of the State Fiscal Service of Ukraine [6].
The next source of income for the united territorial communities is investments that the community can attract by creating a favorable investment climate, corporatization of communal enterprises, public-private partnerships and leasing.
Community development investment resources include resources attracted to the local economy to create new assets. Investment resources can be both privately owned and fully or partially communally. It also makes sense to allocate investment resources that are directly controlled by the municipality, ie those that are carried out at the expense of local budgets, as well as enterprises and organizations of communal ownership. In practice, there are various mixed forms of investment made in the mode of co-financing from different sources. Investment is a key factor in the economic development of regions. The investment process at the local level is aimed at solving various problems. First of all, investments in the municipal sphere are focused on providing the population with new, additional or improved services, creating new jobs, creating new infrastructure and ensuring the modernization of existing infrastructure; reducing costs and improving the quality of construction, operation and maintenance; ensuring timely and adequate maintenance throughout the life of the assets; use of experience and technologies of the private sector; replenishment of budgets by increasing the tax base [1].
The first thing we pay attention to is the corpo-ratization of communal enterprises. In Ukraine it happens by:
- creation of communal enterprises in the form of a business association by local self-government bodies;
- transformation of a communal enterprise of unitary type into a business partnership;
- acquisition by a local self-government body of more than 50% of shares (stakes) of the authorized capital of the company.
Corporate communal enterprises can be established in the form of a joint stock company or a limited liability company.
After the local self-government body transfers the separated communal property as a contribution to the authorized capital of the company, the territorial community ceases to be the owner of this property. The specified communal property becomes the property of the company, and the territorial community receives in return the corresponding volume of corporate rights [8].
The corporatization of communal enterprises helps communities attract new financial resources, improves the existing material and technical base, as well as creates new jobs and solves social problems.
As for the public-private partnership, it provides for permanent cooperation between the authorities, including the municipal level, and private sector enterprises in order to generate resources for the implementation of infrastructure projects. Signs of a public-private partnership are the distribution of costs, risks and future benefits between public and private partnerships. The application of this mechanism allows the authorities to meet the needs of economic development with investment funds, without losing the impact on infrastructure and control over them. This influence is mainly realized through the preservation of ownership of the object.
Public-private partnership is one of the most common mechanisms for financing large-scale infrastructure projects in developed countries. In some places, this mechanism is beginning to be used to an incomparably smaller extent in Ukraine as well.
Another tool for attracting investment funds is leasing as an economic activity aimed at investing own or borrowed funds, which is to provide under the lease agreement by one party (lessor) for the exclusive use of the other party (lessee) for a specified period of property owned or acquired by the lessor, subject to payment by the lessee of periodic lease payments.
In world practice, leasing is considered as a form of public-private partnership, along with concessions, leases, production sharing agreements, agreements -on the management of state and municipal property, agreements on joint activities.
Leasing operations are characterized by certain features that together determine the specifics of this financing instrument: payment (the lessee is provided with equipment for use for a fee); maturity (the lessor transfers the property to the lessee for a specified period); payback (provides for the coverage of all costs of the lessor for the purchase of equipment and its transfer for use); purposefulness (the subject of leasing must be used for a specific purpose and purposes); subjectivity (the lessor retains ownership of the leased property, receives lease payments, and the lessee obtains the right to use the leased asset).
Most often, leasing operations in the field of economic development of communities relate to the following types of equipment: means of production (for communal economy, in particular the needs of the communal enterprises); vehicles; high-value equipment (for social infrastructure institutions, including hospitals, schools, cultural institutions, etc.); energy saving equipment (for modernization of housing and communal services); equipment for street lighting or traffic control (in particular, traffic lights).
The cost of leasing depends on the size of the advance payment and the term of the lease, and the size, method and frequency of lease payments take into account the specifics of the subject of the lease and determine in the contract.
The role of leasing as a tool for financing community economic development is due to the fact that
local governments, communal enterprises and communal institution due to lack of funds and high cost of equipment are often unable to timely update the equipment necessary for their proper functioning. Under such conditions, leasing becomes the most affordable way to upgrade equipment for housing and communal services, social and transport infrastructure, etc.. Leasing is that financial instrument that allows municipalities to purchase the necessary equipment on a gradual basis. In addition, leasing plays a significant role not only in the renewal of the property of local communities, but also expands the demand for products of equipment manufacturers, increasing aggregate demand in the economy.
The task of leasing as a financial instrument is to combine the economic interests of producers and consumers to achieve a common and mutually beneficial goal. The consequences of mutually beneficial implementation of leasing projects are increased comfort, improved environmental condition and significant savings (reduction of costs) of local budgets.
For communal companies, leasing provides additional benefits, because the subject of leasing and depreciation are accounted for on the balance of the lessee. In addition, this financing instrument allows utility companies to simultaneously direct funds for development and obtain a tax credit for certain types of taxes (in particular, value added tax) [1].
Also considering investment sources of income, it should be noted that the united communities can not only attract investment, but also invest temporarily free funds of the general fund of local budgets of the united territorial communities for the purchase of government securities, namely domestic government bonds of Ukraine. This tool for managing temporarily free budget funds is relatively new and is hardly used by the united territorial communities, therefore, it needs detailed study.
It should be noted that domestic government bonds of Ukraine are government securities that confirm the obligation of Ukraine to reimburse the holders of these bonds for their nominal value with the payment of income in accordance with the terms of placement of bonds.
Placement of bonds is carried out according to the criterion of profitability in the form of auction sale of bonds or sale of bonds at a fixed level of yield. The rate of return on the purchase of these bonds is set on market conditions during their placement by the Ministry of Finance of Ukraine, and the yield also depends on such a criterion as the type of currency in which the domestic government bonds are nominated. Thus, there are two types: nominated in hryvnia - upon redemption, the owner receives funds in hryvnia, and the second type nominated in foreign currency - redemption in foreign currency, indexed at the US dollar or euro - redemption in hryvnia, but at current exchange rates. Yields on foreign currency bonds are usually lower than on hryvnia bonds.
Analyzing the dynamics of the yield on domestic government bonds during 2019, it should be noted that the weighted average yield was as follows: in UAH -17.79%; in US dollars - 5.97%; in euros - 4.22% (Fig. 5).
Fig. 5. Dynamics of yield on domestic government bonds during 2019, % Source: generated by the author based on [9]
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5,3 5,3 5,^5,4 3,6 5,5 5,5 5,8 6 7,1 7,1 6,5
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4,3 4,2 14,1 4 4,1 4,3 4,2 4,4 4,1 4,6 4,6 4,5
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This yield is quite sufficient and higher than that of deposits, but it should be noted that given the amount of money that needs to be spent on opening and maintaining an account, as well as various fees and surcharges for services, experts recommend minimum deposit amounts to achieve greater efficiency and profitability of this investment and such amounts, respectively, fluctuate within the initial minimum deposit of 200 - 300 thousand UAH, and in general it is better to invest an amount closer to 1 million UAH, for deposits in US dollars or euros, then the recommended minimum the amount of the deposit varies in the amount of 20 - 30 thousand.
Thus, the placement of temporarily free funds from the local budgets of the united territorial communities in government bonds is an effective tool for attracting additional revenues to local budgets. This type of investment is new for the united territorial communities, and the procedure itself is quite difficult, but with the right approach by local governments and their study of all aspects of the mechanism of investing in domestic government bonds, local budgets will be able to get a new source of sustainable annual income , which is guaranteed at the state level.
The next source of income for the united territorial communities is loans, which include local borrowings provided to communities on terms of payment, maturity and property security, as well as loans provided by international financial organizations to finance local economic development.
According to Article 74 of the Budget Code of Ukraine, local borrowings are made to finance the development budget of city budgets and are used to create, increase or upgrade long-term strategic facilities or facilities that meet the tasks of city councils to meet the interests of local communities bridge. The right to make local borrowings within the limits set by the decision on the local budget, subject to Article 74 of this Code belongs to the Autonomous Republic of
Crimea, regional council, territorial community of the city represented by the head of the local financial body on behalf of the Verkhovna Rada of the Autonomous Republic of Crimea. [5].
Thus, the study concluded that local borrowing has the right to be carried out only by territorial communities of cities, while urban and rural communities do not have such a right.
Depending on the method of borrowing, there are the following main forms:
- loans raised by local governments from banking and other financial institutions;
- local bond loans, which provide for the issuance of municipal bonds;
- promissory note loan, which provides for the issuance of short-term treasury bills and treasury bills (in Ukraine - only the state);
- mutual loans of local governments, treasury loans (as well as medium-term loans from a single treasury account) [2].
Particular attention should be paid to local bond loans, as this financial instrument helps to attract funds from external sources. Therefore, consider them in more detail. Local bond loans are one of the financial and credit instruments, which provides for the provision of funds to legal entities and individuals in the debt of the municipality on terms of maturity, payment and return in exchange for bonds issued by him.
Bond loans are one of the important tools for attracting financing for local economic development. Unlike other credit instruments, bond loans allow you to attract significant cash resources in the long run. By making bond loans, the municipality can finance high-value capital projects, such as the construction or modernization of water supply and sewerage systems, the development of transport infrastructure, the construction of educational institutions, health care, cul-
ture, sports, etc. Through the bond loans can accumulate resources from both large investors (including institutional) and a wide range of people living or working in the municipality, and thus directly involve them in the processes of local economic development and interest in its results.
Thus, with the help of bond loans it is possible to transform the internal savings of the community into an investment in its development.
Local bond loans are placed on the domestic or foreign stock market through the issuance of local bonds, which, depending on the characteristics of the use of borrowed funds and sources of debt repayment can be of three types: general or non-yield, yield and mixed.
In general or non- yield bonds, the object of investment are objects or services that benefit the whole or most of the territorial community (public safety, streets and bridges, public parks, leisure facilities, etc.), and the source of their repayment is the sale of communal property or current revenues of the local budget.
In yield bonds, the object of investment is capital investment, which benefits a certain group of users who reimburse such investments through payment for services received (municipal airports, public transport, water supply and sewerage systems, sports facilities, etc.), and the source of their repayment is the future flow of income from the created objects.
In mixed bonds, the object of investment is investment in objects that will generate mixed bonds, or refinancing of general or income bonds to restructure local debt (in case of lower market interest rates, to delay maturities), and the source of their repayment is the sale of communal property or the current income of the local budget or the future flow of income from the created objects.
The issuance of these types of bonds depends on many factors: national legislation, fiscal powers of local authorities, their institutional capacity, macroe-conomic situation, the development of the country's stock market and so on. Different types of bonds have different levels of risk and, accordingly, the level of yield. General (non-yielding) bonds are the most risky for investors, so they usually set higher interest rates. Yield bonds are associated with lower risk for investors because the terms of their issuance clearly define the source of interest income and bond redemption. Therefore, the level of yield on this type of bonds is lower than general bonds. Mixed bonds are considered more reliable for investors, so interest rates on them are lower against the other two types of bonds. An important condition for achieving the expected results from the implementation of bond loans is the proper level of borrowing management, ie the implementation of a balanced debt policy by the municipality [1].
As for the loans that united territorial communities can receive from international financial organizations, this mechanism provides for the availability of approved credit lines or programs. This type of loan has a number of features that characterize it, namely the term of the loan is much longer than conventional loans, interest rates are lower and the terms are more
stringent, there is a grace period that reduces the burden on the borrower and in addition Prior to that, international financial organizations may provide consulting services for debt management on this loan.
In the process of initiating and preparing projects for loans from international financial organizations, it is necessary to establish effective communication with the relevant ministries, which may influence the process of reviewing documents or deciding on a loan-During the preparation of the project, which will be financed by a loan from an international financial organization, it is advisable to take a number of organizational measures that will contribute to its successful implementation, including the appointment of a project coordinator, to form a project management team, draw up an action plan for project preparation and implementation, determine the mechanism for monitoring the effectiveness of project implementation.
Attracting financial resources through credit instruments can occur in three ways:
1. The borrower is directly the municipality, the funds raised are directed to the local budget and distributed within its expenditures.
2. The borrower is a utility company that receives financial resources, disposes of them, provides service and repayment of debt.
3. The borrower is a private sector entity and the municipality may provide loan repayment guarantees..
The main risk associated with the use of credit instruments arises from the emergence of local debt, the need to service and repay it. To maximize the benefits of credit instruments and overcome their limitations in world practice, it is recommended to follow the "golden rule", which provides for the use of borrowed resources for capital expenditures. It is the investment orientation of the attracted resources that actively influences the social and economic development of the municipality and improves the quality of public services.
The use of credit instruments requires local authorities to:
- clear definition of the main investment priorities with a focus on infrastructure development and directing the attracted resources to its financing;
- setting a limit on local debt (or compliance with statutory limits);
- availability of available sources financing and servicing of debt;
- ensuring transparency and balance of the local budget;
- training of employees of relevant structural units of local governments for the use of credit instruments and local debt management;
- development of a system for monitoring the implementation of investment projects to finance credit resources [1].
Another source of income for the united territorial communities is grants provided by international donor organizations, governments, government agencies, commercial entities, public nonprofits, private charitable foundations, or organizations in the form of grants for specific purposes. To receive such financial support, communities should fill out applications on
the Internet resources of relevant international donor organizations, and they in turn select the most attractive projects through a competition. Of course, obtaining such a grant is not easy, but if the community is trying to address an urgent socio-economic, environmental or energy issue and has a clear and effective strategic plan, the chances of receiving this kind of financial assistance are much higher.
Grant instruments are an important tool for supporting the economic development of communities. First, grant funds are managed in a way that allows them to respond flexibly to the needs of municipalities, which is lacking in most government programs. Grant programs can change rapidly, respond to risks, innovate, and change traditional approaches to implementing the economic mechanism. Second, grants from a variety of donors often serve as first or long-term capital, independent of political and market forces. The funds have a long history of funding regional economic development initiatives, and more and more donors are channeling resources to specific territories or local initiatives in collaboration with public and private partners.
Usually grant funds make up a small share of financing the needs of the territory in economically developed countries. In contrast, in Ukraine, where access to other sources of funding is extremely limited, it is grant instruments that are often crucial for financing various local development projects. Grant instruments also often provide support and support to other financing instruments, including investments or loans from international financial institutions.
It should be noted that during the preparation of the project proposal for a grant it is necessary to realistically assess the possibilities of co-financing the project from the local budget and other local resources. The contribution of the local community to the financing of the project should be considered material and technical and human resources that will be directed to its implementation, and provide the donor organization with appropriate justifications and calculations [1].
Also, the types of grants and financial assistance that united territorial communities can receive are endowment and crowdfunding, they are more specific and are practically not used to finance the development of united territorial communities in Ukraine, but have their own potential, so they should be considered and considered.
Endowment should be understood as the amount of funds or other liquid assets contributed by a philanthropist to a banking or non-banking financial institution, due to which the recipient of charitable assistance receives the right to use passive income arising from the use of such funds (assets) by such institutions, herewith the purchaser is not entitled to spend the principal amount of the endowment. If during the above-mentioned period the targeted charitable aid has not been used as intended by its purchaser, it shall be returned to the benefactor in the unused amount during the quarter, which accounts for the end of the appointed period of its use.
With regard to crowdfunding, it involves the voluntary participation of people in the collective financing of a project or idea, the funds for which are usually collected on special Internet platforms. In the long run, communities may try to raise funds for their small projects through this source.
For the successful application of grant instruments, local authorities must have the appropriate capabilities (competencies):
- ability to choose and clearly formulate strategic and operational goals;
- ability to interact with the external environment, in particular with donors, the central government, the local community, civil society organizations, etc;
- experience and professional training and personal qualities of project executors (ability to develop projects; skills of separation and formulation of social problems; ability to analyze the necessary information; skills of budgeting of project activity).
Program priorities for the provision of grants to finance economic development projects are set by the donor organizations themselves, taking into account their missions and goals. At the same time, the program priorities are not static - their evolution is determined by changes in the needs of potential grantees and recipient countries, as well as new opportunities for relevant donor organizations. Among the general priorities in the field of economic development support are the creation of preconditions for long-term economic growth of territories, the realization of local potential for economic development on a sustainable basis, increasing the capacity of jurisdictions to realize their own economic potential, etc. Activities supported by donor organizations often involve not only the allocation of funds for the implementation of relevant projects, but also training on various aspects of regional development and the development of appropriate environmental strategies for their implementation [1].
Conclusions. Ensuring the financial capacity of territorial communities is the main condition for achieving socio-economic development and modernization of infrastructure, while achieving such capacity is possible only with a well-established mechanism for filling the revenue side of the budget. That is why communities that have come together or are just planning to do so should focus on improving ways to generate a stable income and maximizing their financial capacity, and then try to solve other tasks or problems. Communities should try to generate income from all of these sources, as well as look for other sources, taking into account the geographical, economic and natural features of the region where the community is located. It is the guarantee of financial capacity that will allow the community to develop confidently in the future and accelerate the process of solving existing problems in order to improve the system of local self-government in Ukraine.
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РАЗВИТИЕ ПЕРСОНАЛА: ИННОВАЦИОННЫЙ АСПЕКТ
Бюллер Е.А.,
канд.экон.наук, доцент, Адыгейский государственный университет Тлехурай-Берзегова Л.Т.
д-р.экон.наук, профессор, Адыгейский государственный университет
Бахова А.П.,
канд.экон.наук, доцент, Адыгейский государственный университет
Чиназирова С.К.,
канд.экон.наук, доцент, Адыгейский государственный университет PERSONNEL DEVELOPMENT: AN INNOVATIVE ASPECT
Buller E.,
Cand.Econ.Sci., associate professor, Adygei state university
Tlekhurai-Berzegova L., Doctor of Science, Professor, Adyghe State University
Bahova A.,
Cand.Econ.Sci., associate professor, Adygei state university
Chinazirovа S.
Cand.Econ.Sci., associate professor, Adygei state university
Аннотация
В широком смысле инновация - синоним успешного развития социальной, экономической, образовательной, управленческой и других сфер на базе разнообразных нововведений. Исходя из этого, под инновационным развитием следует понимать, прежде всего, цепь реализованных новшеств. В статье рассматривается роль и значение развития персонала организации как инновационного аспекта деятельности.
Abstract
In a broad sense, innovation is synonymous with the successful development of social, economic, educational, management and other spheres based on a variety of innovations. On this basis, innovative development should be understood, first of all, as a chain of implemented innovations. The article examines the role and importance of the development of the organization's personnel as an innovative aspect of activity.
Ключевые слова: персонал, инновация, трудовой и инновационный потенциал, кадровая инновати-
ка.
Keywords: personnel, innovation, labor and innovation potential, personnel innovation.
