A SWOT Analysis of Fiscal Determinants of the Development of Territorial Communities in Ukraine

Abstract

Modern aspects of the reconstruction and development of local self-government bodies in Ukraine require a thorough analysis of risk factors and threats in order to develop effective methods to counteract them. In this perspective, the use of SWOT analysis will help identify strengths and prospects for the effective functioning of territorial communities, taking into account the key determinants of fiscal policy and fiscal federalism. The main aim of the article is to study the trends in the reconstruction and development of the economy of local self-government bodies using the method of SWOT analysis of the determinants of fiscal policy and fiscal federalism. The article examines the effectiveness of the application of strategic SWOT analysis of the functioning of local self-government bodies on the basis of key parameters of fiscal policy and fiscal federalism. It is argued that on the basis of the SWOT analysis and approximation of the original approaches of fiscal federalism, the territorial community in the strategic perspective of managerial decision-making will achieve a synergistic effect in terms of financing priority budget expenditures. The effects are systematized and the priorities of stabilization and development of socioeconomic processes in territorial communities are outlined due to: changes in the redistribution of shares of the personal income tax in the budgets of all levels; expanding the powers of local self-government bodies in the field of administration of local taxes and fees, in particular, the tax on real estate other than land; intensification of actions in the direction of application of investment and (or) innovative tax credit for promising business entities of the national and international level for the implementation of measures to restore and modernize the infrastructure of the territorial community; full-fledged implementation of the State and public control and monitoring of the efficiency of budget expenditures, etc.

Keywords

• fiscal policy
• fiscal federalism
• tax potential
• budget expenditures
• swot analysis
• local self-government bodies.