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{"id":22928,"date":"2026-10-08T09:08:42","date_gmt":"2026-10-08T06:08:42","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=22928"},"modified":"2026-10-08T09:08:42","modified_gmt":"2026-10-08T06:08:42","slug":"effective-use-of-tax-potential","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/effective-use-of-tax-potential\/","title":{"rendered":"Burkovskaya A., Slobodian T. Effective use of tax Potential of Territorial Communities"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification:<\/strong> H20, H71, R51<\/span><\/i><\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V58(2026)-03<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Burkovskaya Alla, <\/b>Candidate of Economic Sciences, Associate Professor of the Department of Finance, Banking and Insurance, Mykolaiv National Agrarian University, Mykolaiv, Ukraine<\/span><\/p>\n

ORCID:<\/strong> 0000-0003-4158-1721<\/span><\/a>
\ne-mail: <\/strong>burkovskaya@mnau.edu.ua<\/span><\/a><\/p>\n

Slobodian Tetiana, <\/b>2nd year Master’s student, Mykolaiv National Agrarian University, Mykolaiv, Ukraine<\/span><\/p>\n

ORCID:<\/strong> 0009-0008-6413-8734<\/span><\/a>
\ne-mail: <\/strong>tanyaslobodian1051@gmail.com<\/span><\/a><\/p>\n

Effective use of tax Potential of Territorial Communities<\/b><\/p>\n

Abstract. Introduction. <\/em><\/strong>The effectiveness of using the tax potential of territorial communities of Ukraine in the context of decentralization and military challenges was studied. The essence of tax potential as a key factor in the financial independence of communities was revealed, and trends in its implementation were analyzed based on open budget data and research by the Kyiv School of Economics (KSE).<\/span><\/i><\/p>\n

Purpose.<\/i><\/b> To analyze the effectiveness of the use of the tax potential of territorial communities in Ukraine, identify the key factors influencing its implementation, and substantiate practical measures to improve the tax capacity of local budgets under the conditions of decentralization and military challenges.<\/span><\/i><\/p>\n

Results.<\/i><\/b> The presence of significant territorial disparities in the level of mobilization of own revenues between communities was revealed, which is due to the structure of the local economy, the level of urbanization, the quality of tax administration and the human resources potential of local governments. Special attention was paid to the impact of martial law, internal migration and reduction of the tax base on the formation of local budget revenues. Using the example of communities of the Mykolaiv region, the implementation of planned and actual indicators of income, expenditure, deficit and financing was analyzed, which made it possible to assess the level of implementation of tax potential in practice.<\/span><\/i><\/p>\n

Conclusions.<\/i><\/b> A set of practical measures to increase the efficiency of tax potential use is proposed, including improving tax administration, digitalization of tax registers, implementation of risk-based financial control, development of the human resources capacity of local financial units, and introduction of mechanisms for assessing the effectiveness of tax incentives.<\/span><\/i><\/p>\n

Keywords<\/i><\/b>: tax potential, territorial communities, local budgets, financial decentralization, tax capacity<\/span><\/i><\/p>\n

References<\/b>:<\/strong><\/p>\n

    \n
  1. OECD. (2022). Tax capacity building: A practical guide to developing and advancing tax capacity building programmes. OECD Publishing. https:\/\/doi.org\/10.1787\/c73f126f-en<\/span><\/li>\n
  2. OECD. (n.d.). Tax administration capacity building and knowledge sharing. Retrieved October 2, 2026, from https:\/\/www.oecd.org\/en\/topics\/tax-administration-capacity-building-and-knowledge-sharing.html<\/span><\/li>\n
  3. OECD. (n.d.). Ukraine. Retrieved October 2, 2026, from https:\/\/www.oecd.org\/en\/countries\/ukraine.html<\/span><\/li>\n
  4. Ministry of Finance of Ukraine. (2024). On approval of methodological recommendations for the organization of local borrowing, provision of local guarantees, management of local debt and debt guaranteed by the Autonomous Republic of Crimea, oblast, city, settlement or village territorial community: Order No. 239 of May 16, 2024. https:\/\/zakon.rada.gov.ua\/rada\/show\/v0239201-24#Text<\/span><\/li>\n
  5. Accounting Chamber of Ukraine. (2023). [Report\/document of the Accounting Chamber of Ukraine]. https:\/\/rp.gov.ua\/upload-files\/Activity\/Collegium\/2023\/11-1_2023\/19050.pdf<\/span><\/li>\n
  6. OECD. (2022). Rebuilding Ukraine by reinforcing regional and municipal governance. OECD Multi-level Governance Studies. OECD Publishing. https:\/\/doi.org\/10.1787\/63a6b479-en<\/span><\/li>\n
  7. OECD. (2025). OECD economic surveys: Ukraine 2025. OECD Publishing. https:\/\/doi.org\/10.1787\/940cee85-en<\/span><\/li>\n
  8. National Institute for Strategic Studies. (2024). Review of instruments for supporting financial stability during martial law in Ukraine (February\u2013March 2024). https:\/\/niss.gov.ua\/news\/komentari-ekspertiv\/ohlyad-instrumentiv-pidtrymky-finansovoyi-stiykosti-u-period-voyennoho-4<\/span><\/li>\n
  9. Piddubnyi, I. (2022). Budget revenue potential analysis: The case of Ukrainian ATCs. Kyiv School of Economics. https:\/\/kse.ua\/wp-content\/uploads\/2025\/09\/Igor-Piddubnyi-Budget-revenue-potential-analysis_-the-case-of-Ukrainian-ATCs.pdf<\/span><\/li>\n
  10. Kyiv School of Economics. (2022). Decentralization and communities amalgamations: Increasing the urban and rural divide? Measuring tax efforts of Ukrainian ATCs. https:\/\/kse.ua\/wp-content\/uploads\/2022\/10\/Final-Report-I-part-KAS.pdf<\/span><\/li>\n
  11. VoxUkraine. (n.d.). \u201cMilitary\u201d PIT: How the tax allocation system can change and what it will lead to. https:\/\/voxukraine.org\/en\/military-pit-how-the-tax-allocation-system-can-change-and-what-it-will-lead-to<\/span><\/li>\n
  12. Ministry of Finance of Ukraine. (n.d.). State web portal of the budget for citizens: Open Budget. Retrieved October 2, 2026, from https:\/\/openbudget.gov.ua\/<\/span><\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received: <\/strong>17 August 2026<\/span><\/strong><\/p>\n

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    Burkovskaya A., Slobodian T. (2026). Effective use of tax Potential of Territorial Communities. Modern Economics, 58(2026), 22-27. DOI: https:\/\/doi.org\/10.31521\/modecon.V58(2026)-03.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_column_text] JEL Classification: H20, H71, R51 DOI: https:\/\/doi.org\/10.31521\/modecon.V58(2026)-03 [\/vc_column_text][vc_column_text]Burkovskaya Alla, Candidate of Economic Sciences, Associate Professor of the Department of Finance, Banking and Insurance, Mykolaiv National Agrarian University, Mykolaiv, Ukraine ORCID: 0000-0003-4158-1721 e-mail: burkovskaya@mnau.edu.ua Slobodian Tetiana, 2nd year Master’s student, Mykolaiv National Agrarian University, Mykolaiv, Ukraine ORCID: 0009-0008-6413-8734 e-mail: tanyaslobodian1051@gmail.com Effective use of tax Potential
    Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":13475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[262],"tags":[263],"class_list":["post-22928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-58-2026","tag-263"],"_links":{"self":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/22928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/comments?post=22928"}],"version-history":[{"count":2,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/22928\/revisions"}],"predecessor-version":[{"id":22932,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/22928\/revisions\/22932"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media\/13475"}],"wp:attachment":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media?parent=22928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/categories?post=22928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/tags?post=22928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}