Management of the revenues of the territotial community of the city using the ABC-XYZ method-analysis

Abstract

The reliable and stable basis of the financial base of the territorial community of the city is the income of the local budget, the sufficient amount of which enables local self-government bodies to effectively influence the socio-economic development of the city. The paper examines the theoretical essence and features of the practical application of the ABC-XYZ method - analysis for evaluating the implementation of the revenue part of the local budget, which will provide an opportunity to substantiate the optimal sequence of management of the planning and implementation of individual revenue sources of the local budget. A significant number of revenues for each type of income of the territorial community budget of the city necessitated their distribution (ranking) into groups in order to establish priorities in the administration and management of the local budget revenue base. It is emphasized that the ABC-XYZ-analysis method provides for the distribution of local budget revenues to groups according to the Pareto principle (the 80/20 rule), which confirms the imbalance between causes and consequences. It has been proven that the assessment of local budget revenues using the ABC-XYZ-analysis method makes it possible to justify the necessity and sequence of management of the planning and execution processes of individual revenue sources, taking into account the level of stability of execution and the real possibilities of their modeling and forecasting. The formed income matrix of the territorial community budget of the city makes it possible to identify priorities and determine the sequence of management decisions regarding the improvement of planning mechanisms and the implementation of relevant incomes, as well as justifies the saving of time and money in the absence of active management actions regarding less important, insignificant in terms of income items of the city budget . The proposed method of analysis makes it possible to reveal the potential of local self-government bodies in managing the processes of planning and implementation of the budget revenues of the territorial community of the city.