FINANCIAL SUPPORT FOR SUSTAINABLE DEVELOPMENT IN UKRAINE IN THE CONTEXT OF DECENTRALIZATION: A EUROPEAN INTEGRATION APPROACH

Abstract

This article examines the strategic role of financial support for local self-government in achieving Ukraine’s Sustainable Development Goals (SDGs) within the framework of decentralization and European integration. The relevance of the topic lies in the need to adapt Ukraine’s system of public finance to European standards, particularly in light of the challenges posed by the COVID-19 pandemic and the full-scale war. The study aims to evaluate the effectiveness of local budget financial mechanisms and to determine their impact on the resilience of regional development. The findings demonstrate that decentralization has significantly increased the financial autonomy of local governments, with own revenues exceeding 70% of total local budget resources. This indicates a successful shift toward fiscal independence and alignment with European norms. Based on official statistical data from 2015 to 2024, the analysis shows that despite external shocks, local governments maintained the ability to finance essential social and economic programs. However, the research also revealed persistent challenges, including regional disparities, dependency on state transfers, and limited investment capacity in war-affected areas. A comparison with EU practices highlighted the need to enhance transparency and accountability, introduce further digitalization of the budget process, and strengthen control mechanisms to meet European standards. Financial support for decentralized communities has become a cornerstone for implementing sustainable development policies and fostering Ukraine’s integration into the European space. Nevertheless, further reforms are required to enhance the resilience of the budgetary system under wartime conditions, ensure more balanced regional development, and expand opportunities for attracting international resources. These measures will strengthen Ukraine’s ability to achieve the Sustainable Development Goals effectively while aligning with European public finance criteria.

The study was carried out within the framework of the Grant Project No. 101085764 — EUPSD — ERASMUS-JMO-2022-HEI-TCH-RSCH. This project is funded by the European Commission under the Erasmus+ program. This publication [communication] reflects only the views of the author, and the Commission is not responsible for any use that may be made of the information contained therein.