Financial Security of Territorial Communities in the Context of Decentralisation under Martial Law

Abstract

The article investigates the peculiarities of territorial communities' financial sustainability in the context of decentralisation and crisis challenges caused by the growth of risks and threats in local financing. It establishes that ensuring the stability of budgetary processes, rational use of resources, and adaptability to external influences are key tasks in maintaining communities' economic independence. The main problems identified include the instability of revenue sources, dependence on intergovernmental transfers, and underdeveloped risk management mechanisms during crises.

The study's purpose is to substantiate scientific approaches to ensuring the financial security of territorial communities by identifying its key components, analysing the impact of financial decentralisation and martial law on financial stability, and developing a model of financial resource management to increase the transparency and sustainability of accounting operations in a crisis.

System analysis, modelling, and comparative studies are used to assess the measures of financial decentralisation and their impact on communities' economic independence. It is shown that, despite the increase in local budget revenues, many communities remain highly dependent on state support and have uneven resource distributions.

The author proposes a model of financial management that provides for strategic planning, regular monitoring of cash flows, creation of reserve funds for unforeseen expenses, and prompt redistribution of funds depending on priority needs. Such a system contributes to increasing the transparency of budget operations and strengthening the financial stability of communities in times of crisis. Automated accounting and reporting tools are recommended for timely decision-making and increased control efficiency.

The conclusions indicate that an integrated approach to financial management includes introducing modern technological solutions, raising financial awareness and improving internal control mechanisms. Promising areas for further research include the development of a methodology for assessing the effectiveness of the implemented measures and analysing the impact of external factors, such as martial law, on the economic capacity of territorial communities.