Budget Revenues as a Means of Ensuring the Financial Stability of Communities

The financial stability of territorial communities is a key condition for their sustainable socio-economic development. In this context, budget revenues are of particular importance, as they act as the main instrument for forming community financial resources and determine the level of their budgetary autonomy. This study aims to substantiate the theoretical foundations of the formation of community budget revenues as a tool for ensuring their financial stability. The article analyses practice and identifies the main problems of filling community budgets in the context of challenges related to the war. The methodological basis of the study is the dialectical approach, structural-logical analysis, comparative analysis of budget indicators, and graphical interpretation of data. In drawing their conclusions, the authors draw on the principles of fiscal federalism, public choice, and institutionalism. The results of the study show that, between 2021 and 2024, the absolute volumes of community budget revenues increased; however, their share in GDP and in the Consolidated Budget of Ukraine’s revenues decreased due to the increased centralisation of resources in the state budget. The results of the regional comparison demonstrate a high level of fiscal autonomy of economically developed and relatively safe regions. Such changes indicate stable tax revenues, structural diversification of the economy, and effective use of financial instruments for the socio-economic development of communities. In contrast, in frontline communities, there is a sharp increase in transfer dependence, which is a natural consequence of military operations. Measures to improve the mobilisation of own and target revenues into community budgets include expanding the tax powers of local governments, combating the shadow economy, increasing the efficiency of tax administration by tackling corruption, and utilising digital technologies in working with taxpayers. In addition, given the significant role of transfers as a source of budget revenues in ensuring the financial stability of communities, it is advisable to develop new approaches to reforming transfer policy.