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At the present stage, the development of Ukraine is characterized by the emphasis shifting in the field of territorial state regulation development in the direction of administrative and financial decentralization and is accompanied by power and resources transfer to the local level. The main purpose of such reforms is the formation of organizational and economic principles for the territorial communities’ development in Ukraine, based on their financial and economic potential effective use. Abovementioned increases the local governments’ responsibility for the rational use of the endogenous potential of the community, the organization of its inhabitants’ life effectiveness and the attraction of untapped sources of the territory development. The fulfilment of these tasks requires a scientific substantiation of the ways of forming the territorial communities’ financial and economic potential on the principles of inclusive growth and ensuring their capacity, which should meet the priorities of modern reforms implementation in Ukraine. Many different works are devoted to the issues of the territorial communities’ development study as subjects of socio-economic evolvement management. They were created by such Ukrainian and foreign scientists. At the same time, in the national scientific literature insufficiently researched are related issues such as the formation of territorial communities’ financial and economic potential, in the context of systemic transformations in the economy and public administration, taking into account the provisions and tasks of the local self-government reform. Among them: creation of viable territorial communities, implementation at the local level, tools for managing economic processes etc. Consequently, the specified reason for choosing the topic of the study. The aim of the work is to improve theoretical and methodological principles and develop practical recommendations for the formation of territorial communities’ financial and economic potential in the context of the local self-government reform.

Forming of territorial communities’ financial and economic capacity in conditions of implementation of local self-government reform