ASSESSMENT OF THE PREREQUISITES FOR THE DECENTRALIZED FINANCIAL RESOURCES FORMATION

Abstract

The key task of local governments is to mobilize sufficient financialresources to meet current financial needs and facilitate the successfuldevelopment of the territory. The article summarizes the scientificapproaches to the nature of the region's financial resources. Amethodology for estimating the value of regional finances, whichtakes into account local budget revenues with transfers, corporateprofits, savings in banking institutions and external investment, ihasbeen proposed. The financial resources of Rivne region have beendetermined.Financial resources are divided into the centralized financialresources, which are formed at the state level, separateadministrative-territorial units, include budgets of all levels and otherstate revenues; and decentralized, created at the level of individualbusiness entities: the finances of legal and physical entities ofdifferent ownership. The factors that influence the formation ofhousehold savings have been identified: wages, income and mixed income, property income, social benefits and other current transfersreceived. The sources have been analyzed and regularities offormation of savings of the population of the region have beendetermined. It has been emphasized that while maintaining thecurrent tendency to increase the incomes of the population andincrease the number of employed people, the savings should betransformed into a significant source of formation of decentralizedfinancial resources of the region. The factors of formation of profit ofthe enterprises of the region have been determined. The estimation ofthe size of profits of the enterprises by the type of economic activity ismade. The proposals for increasing the own financial resources ofenterprises, which are the basis of the financial base of the regionhave been determind: directing depreciation for the purposes oftechnological upgrading, expanding the use of accelerateddepreciation methods; stimulating enterprise restructuring that willimprove asset management; implementation of effective financialplanning mechanism; motivation for long-term investment activity.