Criteria for the expediency of municipal-owned enterprises budget support

Abstract

Introduction. Municipal-owned enterprises are important providers of vital services to the population, companies and institutions, inclu­ding those that ensure the implementation of key social functions of the state inside communities. Problem. There is a contradiction in the theoretical and the practical terms regarding the justification of the municipal-owned enterprises feasibility of financial support with budget funds. The aim of the article is the budget financing process of municipal-owned enterprises that pro­vide socially significant services, and justi­fication of the effective forms of financing for socially significant municipal-owned enterprises. Methods. Systematic approach (with the calcu­lation and analytical method with tabular and graphical presentation of data), methods of com­parative analysis and synthesis and generali­zation were applied in the paper. Results. The role of municipal-owned enter­prises in the system of providing services of a social direction was studied. The dynamics of budge­tary financing of social expenditures in Ukraine as a whole and the dynamics of bud­getary finan­cing of Kyiv municipal-owned enter­prises that provide social services were ana­lyzed. Dis­proportions in the distribution of bud­get funding of municipal-owned enterprises per­forming a social function were established. Conclusions. The author demonstrated the uneven distribution of financing forms on the example of the analysis of various forms of budget financing of Kyiv municipal-owned enter­prises that provide socially significant services. She also found out that the financing of socially significant municipal-owned enterprises was not a priority in the capital compared to the sphere of construction, repair and maintenance of roads. Optimizing the number of municipal companies can be one of the ways to solve the problem. Another way to solve the problem is to develop scientifically based financial and non-financial criteria for decision-making on financing and means of control over the funds distribution.