ENSURING THE VIABILITY OF TERRITORIAL COMMUNITIES OF UKRAINE IN THE CONDITIONS OF OVERCOMING FINANCIAL AND INNOVATIVE CHALLENGES

Abstract

Decentralization of power in Ukraine is one of the priority reforms of the modern state system, which has caused serious changes in the financial and innovation policy of territorial communities, and also acts as an institutional basis for the economic progress of territories, which requires an in-depth analysis of the financial capacity of territorial units and their innovative activity to identify potential and threats on the way to sustainable development. The purpose of the research is theoretical substantiation and development of management approaches to eliminate financial and innovative challenges of territorial units in conditions of decentralization of power, in particular in Transcarpathian region, as well as providing practical recommendations on strengthening local budgets and promoting innovative progress. The object of the research is the financial self-sufficiency and innovative activity of the territorial units of Ukraine, in particular the Transcarpathian region. The methods of the research used in the research are general scientific methods, in particular, historical, dialectical, comparative, phenomenological, systemic analysis and the method of generalization. The hypothesis of the research is that effective management of financial resources and purposeful development of innovative activity in territorial communities will contribute to stable economic growth in conditions of decentralization. The statement of basic materials. The decentralization of power in Ukraine has led to significant changes in the financial and innovation policy of territorial communities, providing greater autonomy in the management of local budgets and increasing responsibility for their effective use. In Transcarpathian region, the reform process took place more slowly due to the uneven distribution of resources and economic assets, which limited the even development of communities. Despite these difficulties, decentralization has created conditions for strengthening financial independence and stimulating innovation at the local level. During 2021-2022, a general increase in revenues to the budgets of territorial communities was observed, in particular due to the contributions of six districts of Transcarpathia, which confirms the positive impact of the reform on economic development. However, the war in Ukraine negatively affected the financial capacity of communities, creating new challenges that require innovative solutions and adaptation to ensure sustainable economic growth. The originality and practical significance of the research lies in the development of management mechanisms for overcoming financial and innovative challenges of territorial communities, in particular in the Transcarpathian region. Conclusions and perspectives of further research. Decentralization of power is a positive change for the financial and innovative development of territorial communities, as it has managed to significantly increase their self-sufficiency. Further scientific research should focus on a more detailed thorough analysis of the impact of decentralization on the financial capacity of territorial communities of the Transcarpathian region, as well as an assessment of the effectiveness of existing and potential innovative strategies at the local level.