Economy of Ukraine
Published since September 1958

№ 6/2021

Ekon Ukr. 2021 (6): 78–98


УДК 33.332. 332.1

JEL: R58, H71, H75

VOZNYAK Halyna1, PATYTSKA Khrystyna2

1Institute of Regional Research named after M.I. Dolishniy of the NAS of Ukraine, Research ID :
OrcID ID :
2Institute of Regional Research named after M.I. Dolishniy of the NAS of Ukraine, Research ID :
OrcID ID :


It is shown that the pandemic in Ukraine has caused new challenges and increased the risks to the sustainable progress of territorial communities, and quarantine measures have deepened the negative trends in strengthening of their financial capacity. The processes of formation and use of financial resources of territorial communities of Ukraine in the conditions of a pandemic are analyzed. Emphasis is placed on the peculiarities of the COVID-19 crisis at the local level (asymmetric impact on the development of territories, negative financial and economic effects, uncertainty in financial and management decisions). The tendencies of pandemic influence on financial indicators of territorial communities in the context of selected groups (cities of regional significance, urban, settlement and rural territorial communities) are revealed: reduction of financial support of local budgets from the state budget, slowdown of growth of tax revenues on basic taxes; reduction of financial resources to ensure the economic development of territories, etc. Problems that negatively affect the strengthening of financial capacity of communities are identified, including: lack of vertical coordination and coordination of actions of public authorities and local governments in addressing the effects of the pandemic and ensuring the development of territories; unsystematic nature of the reaction of local authorities to the crisis; excessive orientation of local governments to finance social expenditures and delegated powers while reducing the amount of economic direction; low communication of local governments with residents of communities (especially rural) in the conditions of remote work. The influence of cognitive, social and psychological factors on decision-making is proved, which is peculiar both to individuals and groups of persons in the part of: substantiation of non-systemic character and short-term perspective of reaction of governing bodies of different levels to the crisis; underemployment of hired workers; establishing systematic communication between the authorities and residents; formation of effective mechanisms of interaction and support of citizens taking into account behavioral representations of people.

Keywords:pandemic; territorial communities; local government agencies; finances of territorial communities; behavioral economics; formation; using

Article original in Ukrainian (pp. 78 - 98) DownloadDownloads :98
The article was received by the Editorial staff on April 8 , 2021


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