FINANCIAL PROVISION OF TERRITORIAL COMMUNITIES IN VOLYN REGION
DOI:
https://doi.org/10.15330/apred.2.21.161-168Keywords:
territorial communities, regions, Volyn region, financial sustainability, expenditures, enterprisesAbstract
The study investigates the financial provision of territorial communities in Volyn region. The purpose of the research is to analyze the financial condition of the territorial communities of Volyn region under martial law and to identify mechanisms for improving their financial stability in order to effectively overcome socio-economic challenges. The research is based on the analysis of the financial performance of enterprises in 2023, particularly their profitability/losses, as well as a comparative analysis of indicators across districts of the region. The study employs statistical analysis, comparative methods, expert evaluations, abstract-logical methods.
Most enterprises in the Volyn region are profitable (76.2%), with the highest rate in Volodymyr-Volynskyi district (79.4%). The largest share of unprofitable enterprises was found in Kovel (24.3%) and Lutsk (24.2%) districts, due to high competition and infrastructural problems. A set of measures is proposed to enhance the financial sustainability of communities: support for entrepreneurship, optimization of budget expenditures, attraction of additional sources of funding (grants, investments, public-private partnerships), transparency in financial management, and innovative approaches. The study emphasizes the necessity of a differentiated approach to supporting the financial condition of territorial communities depending on the specific characteristics of each district.
The proposed mechanisms aim to strengthen the financial base of communities, which is critical for their sustainable development amid crisis and post-war recovery. To improve the financial condition of territorial communities, budget planning, detailed expenditure structure analysis, and optimization in line with priority areas are recommended. At the same time, it is advisable to actively seek additional funding sources, including grants, investments, public-private partnerships, participation in international programs, ensuring transparency in budget planning and utilization, and involving residents in discussions on priority projects. Regular financial monitoring using potential indicators and action plan development aimed at strengthening the financial base and supporting initiatives in innovative industries — potential new sources of income for communities — is also advisable.
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