№ 11/2023

Fìnansi Ukr. 2023 (11): 49–68https://doi.org/10.33763/finukr2023.11.049

In memory of Viktor Fedosov

BURIACHENKO Andrii ¹, LOGVINOV Pavlo ²

¹Kyiv National Economic University named after Vadym Hetman
OrcID ID : https://orcid.org/0000-0002-7354-7491
²Uzhhorod City Council
OrcID ID : https://orcid.org/0000-0001-9855-0315

Local self-government during the war: key transformations in financial empowerment

Introduction. The challenges faced by local self-government bodies in recent years constitute a significant test for understanding the importance of prompt and adequate response to the events and threats. A fundamentally new aspect in communities functioning is a period of special legal regime ensued after the martial law declaration in the entire country. During this period, the functions of local self-government bodies change, they are granted additional atypical powers necessary for a prompt response to emergencies, ensuring national security, countering armed aggression, and eliminating threats to the state independence of Ukraine, its territorial integrity, which is indistinctive in peace time and require special skills and additional regulatory support. The activity of the local self-government bodies during the special legal regime of the martial law should be disclosed through the economic and legal component of their activity.
Problem Statement. The effective interaction of the public, volunteer organizations, local self-government, defense forces and state authorities, except military-political state, largely depends on the regulatory and legal regime that defines the powers and responsibility zones of the government bodies in protecting the citizens and territorial integrity of the state. Studying the experience of local self-government activities provides successful examples and strategies for overcoming the problems and unconventional challenges to enhance the community resilience in times of military aggression.
Purpose. To investigate the peculiarities of the financial and economic activities of local self-government bodies during the martial law. To identify and examine the factors influencing upon the current legal regime on the managerial processes and resilience of territorial communities to challenges, ensuring the normal functioning of the settlements.
Methods. The dialectical methods, general scientific approaches and special research methods such as description, analysis, synthesis, grouping, comparison, theoretical generalization, and others were applied.
Results. The study of the financial and legal mechanisms of the local self-government activities has revealed that further legal regulation of certain components of the activities of military administrations, personnel issues, the time frame of activities and dual responsibilities of both the Head of the Military Administration and Head of the community require special attention at the level of local self-government bodies. This necessitates further scientific research and methodological support in development of the legislative initiatives.
Conclusions. During the martial law, distribution of the powers of local self-government bodies, being fixed, changed temporarily, altering the functions of various levels of government in the regions and strengthened the authority of security-oriented structures. This partially limited the directions for using budgetary funds and autonomy of decision-making by the communities. Increased interaction is observed between the bodies of military administrations, state authorities, officials of territorial communities, and representatives of civil and volunteer organizations. The state authorities has been rather quickly responded to the recent events, regulating the activities of local self-government bodies in conditions of the martial law.

Keywords:local self-government finances, martial law, financial potential, territorial communities, community powers, regional development, decentralization

JEL: H73, R10

BURIACHENKO A. . Local self-government during the war: key transformations in financial empowerment / A. . BURIACHENKO, P. Logvinov // Фінанси України. - 2023. - № 11. - C. 49-68.

1. Krysovatyy, A., & Valihura, V. (2022). Tax legislation of Ukraine under the conditions of martial law. Finance of Ukraine, 6, 33–53 [in Ukrainian]. doi.org/10.33763/finukr2022.06.033
2. Oparin, V. M., & Fedosov, V. M. (Eds.). (2016). Financial infrastructure of Ukraine: state, problems and development prospects. Kyiv: KNEU [in Ukrainian].
3. Yuriy, S. I., & Fedosov, V. M. (Eds.). (2012). Finances (2nd Ed.). Kyiv: Znannia [in Ukrainian].
4. Buriachenko, A. Ye., & Logvinov, P. V. (2015). Identification of the results of utilization of the performance-based budgeting method in budget process. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, 2, 123–129. Retrieved from nvngu.in.ua/index.php/en/archive/on-the-issues/1069-2015/contents-no-2-2015/economy-and-management/3007-identification-of-the-results-of-utilization-of-the-performance-based-budgeting-method-in-budget-process [in Ukrainian].
5. Fedosov, V., Yukhymenko, P., & Boiko, S. (2010). Mykola Tsytovych - founder of science on local finances. Finance of Ukraine, 10, 113–124 [in Ukrainian].
6. Iefymenko, T. (2023). Public Financial Management in martial time and post-war reconstruction of Ukraine: scientific support of transformations. Finance of Ukraine, 1, 7–25 [in Ukrainian]. doi.org/10.33763/finukr2023.01.007
7. Koveria, R. M. (2022). Activities of local self-government bodies in the conditions of martial law. Juridical scientific and electronic journal, 11, 115–118 [in Ukrainian]. doi.org/10.32782/2524-0374/2022-11/23
8. Kudrjashov, V. (2022). Infrastructure financing in the course of overcoming wartime consequences. Finance of Ukraine, 4, 46–66 [in Ukrainian]. doi.org/10.33763/finukr2022.04.046
9. Marshuk, L., Movchan, D., & Pokoiovyi, A. (2022). Peculiarities of the financial system during the war. Economy and Society, 37 [in Ukrainian]. doi.org/10.32782/2524-0072/2022-37-61
10. Pavliuk, K., & Bartosh, S. (2022). Fiscal decentralization in Ukraine under martial law. RFI Scientific Papers, 2, 79–99 [in Ukrainian]. doi.org/10.33763/npndfi2022.02.079
11. Reznikova, O. (Ed.). (2021). Organization of the system for ensuring national stability at the regional and local levels (Analytical report). Kyiv: NISS. Retrieved from niss.gov.ua/sites/default/files/2021-09/analytrep_08_2021.pdf [in Ukrainian].
12. Sapoznikov, V. B. (2010). Practice and problems of financial support of local self-government bodies in Ukraine. Investytsiyi: praktyka ta dosvid, 11, 69–71. Retrieved from www.investplan.com.ua/pdf/11_2010/19.pdf [in Ukrainian].
13. Tkachuk, A. F. (2016). Local self-government and decentralization. Legislation (educational module). Kyiv: ICC “Legal status”. Retrieved from decentralization.gov.ua/uploads/library/file/81/Miscevesamovryaduvannya.pdf[in Ukrainian].
14. Rudenko, O. M. et al. (2016). History and theory of local self-government. Kyiv: Condor Publishing House [in Ukrainian].
15. Verkhovna Rada of Ukraine. (1996). Constitution of Ukraine (Act No. 254k/96-VR, June 28). Retrieved from zakon.rada.gov.ua/laws/show/254%D0%BA/96-%D0%B2%D1%80#Text [in Ukrainian].
16. European Charter of Local Self-Government. (1985, October 15). Retrieved from zakon.rada.gov.ua/laws/show/994_036#Text [in Ukrainian].
17. Verkhovna Rada of Ukraine. (2010). Budget Code of Ukraine (Act No. 2456-VI, July 8). Retrieved from zakon.rada.gov.ua/laws/show/2456-17#Text [in Ukrainian].
18. Cabinet of Minister of Ukraine. (2021). On the approval of the Procedure for the exercise of powers by the State Treasury Service in a special regime under martial law (Decree No. 590, June 9). Retrieved from zakon.rada.gov.ua/laws/show/590-2021-%D0%BF#Text [in Ukrainian].
19. Cabinet of Minister of Ukraine. (2022). Some issues of formation and execution of local budgets during martial law (Decree No. 252, March 11). Retrieved from zakon.rada.gov.ua/laws/show/252-2022-%D0%BF#Text [in Ukrainian].
20. Verkhovna Rada of Ukraine. (2015). About the legal regime of martial law (Act No. 389-VIII, May 12). Retrieved from zakon.rada.gov.ua/laws/show/389-19#Text [in Ukrainian].
21. Cabinet of Minister of Ukraine. (2022). On the approval of the Procedure for financial support of the activities of military administrations (Decree No. 397, April 1). Retrieved from zakon.rada.gov.ua/laws/show/397-2022-%D0%BF#Text [in Ukrainian].
22. Verkhovna Rada of Ukraine. (2001). About service in local self-government bodies (Act No. 2493-III, June 7). Retrieved from zakon.rada.gov.ua/laws/show/2493-14#Text [in Ukrainian].
23. Verkhovna Rada of Ukraine. (2015). About the public service (Act No. 889-VIII, December 10). Retrieved from tax.gov.ua/diyalnist-/zakonodavstvo-pro-diyalnis/zakoni-ukraini/72725.html [in Ukrainian].
24. Verkhovna Rada of Ukraine. (1997). About local self-government in Ukraine (Act No. 280/97-VR, May 21). Retrieved from zakon.rada.gov.ua/laws/show/280/97-%D0%B2%D1%80#Text [in Ukrainian].
25. Verkhovna Rada of Ukraine. (2014). On prevention of corruption (Act No. 1700-VII, October 14). Retrieved from zakon.rada.gov.ua/laws/show/1700-18#Text [in Ukrainian].