A Managerial Approach to Determining the Essence of the Territorial Community Budget as an Accounting Object

Abstract

Abstract: Purpose. The study aims to develop a conceptually holistic understanding of the budget of a territorial community as an object of accounting and control in the context of decentralization reform and martial law, which entail a fundamental transformation of the architecture of public finances at the local level. Methods. In the process of the study, the methods of theoretical generalization and systematization were applied to analyze existing approaches to determining the essence of the budget; comparative analysis - to compare regulatory, economic and managerial approaches; structural and logical modeling - to develop a three-dimensional conceptual model of the budget as a managed object; as well as content analysis of international accounting standards in the public sector. Results. It was established that the regulatory approach treats the budget as a static plan with a priority on procedural compliance. In contrast, the economic approach emphasizes the community’s ability to generate resources and withstand financial shocks. A management approach is proposed as their synthesis, based on accounting data and risk-based management. A three-dimensional model of the budget of a territorial community is developed, integrating legal, economic, and accounting subsystems with differentiated control objects. A conceptual gap exists between the cash approach to budget execution and the accrual logic under IPSAS, which must be overcome to build an effective system of preventive financial monitoring. The feasibility of introducing an indicator of net budgetary capacity that accounts for mechanisms of inter-budgetary redistribution, in particular reverse subsidies, is substantiated. Conclusions. The proposed conceptual model provides a methodological basis for stratifying budgetary control at the operational, tactical, and strategic levels, facilitating the transition from reactive audit to the preventive management of budgetary risks for territorial communities.