FINANCIAL ASPECT OF DEVELOPMENT SOCIO-ECONOMIC INFRASTRUCTURE FRONTLINE TERRITORIAL COMMUNITIES

Abstract

Introduction. In the context of transformational changes and deepening crisis phenomena caused by a full-scale war, the issue of ensuring sustainable development of territories acquires special importance. The most vulnerable in this context are frontline territorial communities, which suffer systemic losses of socio-economic potential, destruction of infrastructure facilities and a significant narrowing of the financial base ensuring the basic needs of the population, but also a key factor in restoring economic activity and strengthening local resilience.

The financial aspect of infrastructure development is of particular importance, since it is through the mechanisms of accumulation, distribution and use of financial resources that the capacity of communities for recovery and further development is formed. The limited own revenues of local budgets, the growth of expenditures on security and social needs, as well as dependence on external sources of funding necessitate the search for new approaches to financial support of infrastructure processes.

At the same time, the intensification of Ukraine's European integration processes puts forward additional requirements for the public administration system, in particular regarding transparency, efficiency and effectiveness of the use of financial resources. In this context, it is important to introduce modern financial instruments, develop inter-budgetary relations, attract international technical assistance and investments, as well as improve strategic planning for the development of territories.

The analysis of scientific approaches shows that the problems of financial support for the development of socio-economic infrastructure are studied quite extensively, but the specifics of the functioning of frontline territorial communities, due to a high level of risks and uncertainty, require additional scientific understanding.

The article is aimed at  generalizing the theoretical and applied foundations of financial support for the development of socio-economic infrastructure of frontline territorial communities, determining their financial stability.

The materials of the study are: 1) scientific works of domestic scientists devoted to the financial aspects of the development of socio-economic infrastructure of frontline territorial communities; 2) data from the official state web portal (Open budget), which is part of the open data platform in the field of public finance.

In the process of the study, the following scientific methods were used: theoretical generalization (for systematization of scientific and methodological approaches to financial support for the development of socio-economic infrastructure of frontline territorial communities); systematization and visualization (for building a quadrant of financial stability of frontline communities as a source of development of socio-economic infrastructure); tabular and comparison (for comparison of financial indicators of development of frontline communities selected by the rondom route); logical generalization of results (formulation of conclusions).

Results. The article studies the theoretical foundations of financial support for the development of socio-economic infrastructure of frontline territorial communities, which made it possible to substantiate and build a quadrant of financial sustainability of frontline communities, as a source of development of socio-economic infrastructure, which contains four components: active budget management, adaptive management decision, state preferential regimes, digital transparency (DREAM).

Using the main financial indicators of the development of randomly selected frontline communities for 2025, a comparative analysis of the financial stability of frontline communities was carried out using Open Budget data, an official state web portal that is part of the open data platform in the field of public finance. The frontline communities that have the largest budget deficit in 2025 have been identified, their financial stability has been calculated, and its decomposition has been carried out in coherence with the quadrant of financial stability of frontline communities. The Resilience Index is divided into five components: active budget management (optimization of expenditures), adaptive management decision (flexibility in crisis), state preferential regimes (transfers), digital transparency (DREAM, Open Budget) and other factors (capital expenditures, dynamics). This made it possible to identify weaknesses in financial support for the development of socio-economic infrastructure of frontline territorial communities.

Prospects. A promising direction is the study of the impact of individual components of the quadrant on the long-term financial capacity of communities using econometric models and scenario analysis. An important area is also the study of mechanisms for diversifying sources of funding for the development of infrastructure of frontline communities. In addition, the study of the relationship between the level of financial stability of communities and indicators of the quality of life of the population, the restoration of infrastructure and the investment attractiveness of frontline territories remains relevant. Thus, further research should be aimed at forming a comprehensive model of financial support for the development of frontline territorial communities, capable of ensuring their adaptability and resilience in conditions of uncertainty.