LOCAL BUDGETS IN THE SYSTEM OF FINANCIAL SECURITY OF TERRITORIAL COMMUNITIES

Relevance of the research topic. The validity of the formation of local budgets is a significant prerequisite for the financial support of territorial communities. It is necessary to strengthen the adaptability of the formation of local budgets to the socio-economic development of territorial communities. The tasks of increasing the quality level of planning, implementation of local budgets, and the efficiency of the use of budget funds are important. Formulation of the problem. The financial support of territorial communities must meet the important tasks of socio-economic development of administrative-territorial units. Analysis of recent research and publications. The issue of formation of local budgets is quite widespread in scientific research. These are the scientific works of famous domestic and foreign scientists: J. Keynes, P. Samuelson, H. Zimmerman, I. Chugunov, T. Kaneva, O. Kyrylenko, L. Lysiak, I. Lukyanenko, A. Mazaraki, V. Makogon , V. Oparin, M. Pasichno, V. Fedosov and others. Highlighting unexplored parts of the general problem. In modern economic conditions, it is important to use local budgets as an effective tool for financial support of territorial communities. Activation of the possibilities of formation of local budgets in the system of inter-budgetary relations requires more effective use of budget expenditures. Setting the task, the goal of the research. The main tasks of the research are to reveal the essence of the financial support of territorial communities, the formation of local budgets in the conditions of social transformation; the development of provisions on increasing the level of effectiveness of the use of budget expenditures, the efficiency of the use of budget funds. The purpose of the study is to reveal the theoretical foundations and improve the mechanisms of formation of local budgets. Method or methodology of research. The article uses a set of methods and approaches of scientific research: systemic, factorial, comparative, synthesis, generalization, scientific abstraction and others. Presentation of the main material (results of work). The essence of financial provision of territorial communities, formation of local budgets in conditions of social transformation is revealed; received further development of the provisions on increasing the level of effectiveness of the use of budget expenditures, the efficiency of the use of budget funds. The theoretical foundations were revealed and the mechanisms of formation of local budgets were improved. Field of application of results. The results of the research can be used in the process of formation and implementation of local budgets, financial support of territorial communities. Conclusions according to the article. An important tool of budget policy is the system of financial support of local self-government, with its help, local self-government bodies influence social and economic processes and improve the well-being of citizens. It is expedient to ensure the further development of approaches to the formation of local budgets according to the program-target method, which will contribute to strengthening the degree of influence of inter-budgetary relations on the socio-economic development of territories, which is especially necessary in the conditions of martial law.