Assessment of the impact of local borrowings on revenues and expenditures of the local budget (on the example of the Lviv City Council)).
Students Name: Mysko Yuliana Mykolaivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2024-2025 н.р.
Language of Defence: ukrainian
Abstract: The work actualizes the theme of the influence of local borrowings on the formation, structure and distribution of revenues and expenditures of the budget of the Lviv city territorial community. In the context of decentralization and expansion of financial opportunities for local authorities, local borrowing has become one of the key tools for ensuring the sustainable economic development of territorial communities. Lviv City Council, as one of the leading city councils of the country, actively applies financial instruments of borrowing and provides local guarantees to Lviv municipal enterprises for the implementation of socially important projects aimed at improving the quality of life of residents and modernizing the urban environment [2]. However, risks are associated with the attraction of debt funds, namely, an increase in the debt burden and the need for debt servicing, which may adversely affect the overall budget policy and investment opportunities. It should be noted that the local budget is an important element of the budget system and plays a leading role in the implementation of the country’s budget policy. To effectively perform its tasks, the urban territorial community must have a sufficient amount of financial resources [3]. Due to effective cooperation and active attraction of financing to the Lviv city territorial community from the EBRD, EIB and NEFCO, a positive investment image of Lviv at the world level is formed, which also serves as an important signal for international and domestic investors, including private ones. Urban projects that have been successfully implemented through borrowing contribute to the transformation of the structure and conditions of the local labor market, ensuring the development of such areas, thereby increasing the level of revenues to the local budget. 7 The subject of the study is the processes and mechanisms of influence of local borrowings on the financial indicators of the local budget, in particular on revenues and expenditures. The object of the study is the local budget of the Lviv city territorial community, which attracts borrowing to finance the development of infrastructure, social and economic projects. The purpose of the study is to carry out a comprehensive analysis of the impact of local borrowing on local budget revenues and expenditures, which will reveal key trends and patterns in this area. An important task is to determine the conditions under which borrowing contributes to the economic growth of the community, as well as risk factors that can lead to negative consequences. The theoretical aspects of the mechanism of local borrowings have been disclosed, the structure and dynamics of the budget of the Lviv city territorial community have been analyzed, the trend of indicators of the local budget has been investigated and the reasons for their change have been substantiated. Keywords - local borrowings, local budget, revenues, expenditures, local debt, local governments, debt service. List of used literature sources. 1. Logvinov, P. (2024). Mechanism of local budgets functioning in conditions of financial decentralization. Economics and Society, (63). 2. Matviychuk, D. (2024). The role of additional sources of funding in ensuring the sustainability of local budgets: challenges and prospects in the context of post-war reconstruction. Economics and Society, (59). 3. Benovska, L. (2022). Local borrowings as a tool for the development of territorial communities. world of finance, 1 (70), 49-60. 4. Vatamanyuk-Zelinska, U., & Maciej, K. (2023). Financial and economic base of local budgets as a guarantee of stable regional development. Innovative Economics, 1 (93), 71-78