STRUCTURING THE FINANCIAL POTENTIAL OF UKRAINIAN REGIONS

Abstract

The article provides a theoretical and methodological substantiation of the essence, content and structure of the financial potential of the regions of Ukraine from the standpoint of modern challenges of regional development, decentralisation processes and the growing need for financial self-sufficiency of territories. The author focuses on the multifaceted nature of the concept of financial potential, which covers both actual and potentially mobilised resources capable of ensuring the implementation of strategic priorities of socio-economic development of regions. The key features of the financial potential of a region are considered, in particular, its dynamism, dependence on the institutional environment, ability to adapt in the face of external and internal changes, as well as the relationship with the competencies of regional authorities. The author's vision of structuring the financial potential is formed on the basis of a combination of two methodological approaches - macroeconomic and mesoeconomic. The macroeconomic approach distinguishes between the finances of enterprises, households, public finances, resources of financial and credit institutions, and external revenues. The mesoeconomic approach made it possible to detail the budgetary, tax, investment, savings, and management components of the financial potential, taking into account the territorial and managerial characteristics of each region. Special attention is paid to the indicative model for assessing financial potential based on a system of quantitative indicators normalised by a scale and integrated into a single index. This approach provides a possibility of comparative analysis between regions, identification of ‘bottlenecks’ in the financial system of territories, and serves as an effective tool for making informed decisions in the field of regional financial management. The proposed model allows not only to quantify the level of financial capacity, but also creates a basis for forecasting development, assessing the effectiveness of budget policy, intensifying investment activity and formulating a financial strategy. The practical value of the study lies in the possibility of adapting the proposed approaches in the system of strategic management of the regions of Ukraine, taking into account the current socio-economic transformations.