The article presents a comprehensive study of the financial capacity of territorial communities (hereinafter – TCs) of Volyn Oblast under martial law and analyzes the dynamics of key budget indicators of their functioning in 2023–2025. The relevance of the study is conditioned y the transformation of Ukraine’s budgetary system, the strengthening of intergovernmental fiscal relations, the reallocation of financial resources to defense, social protection, and critical infrastructure, and the need to develop adaptive models of local public finance management under wartime conditions. The purpose of the article is to assess the financial capacity of TCs in Volyn Oblast during martial law and to identify the factors influencing its level, particularly the dependence of financial capacity on territorial, demographic, and resource-related characteristics, as well as to determine effective budgeting practices in communities of different size and economic potential. The methodological framework is based on systemic, institutional, and structural-functional approaches, combined with statistical analysis, comparison, grouping, ranking, and elements of correlation analysis to determine the relationship between financial capacity and community potential. The assessment relies on an integrated system of indicators, including general fund revenues per capita, the share of own-source revenues, the level of grant dependency, budgetary self-sufficiency, expenditure structure, and the proportion of development expenditures. Financial capacity was classified into five levels: high, optimal, satisfactory, low, and critical. The study confirms an increasing role of intergovernmental transfers and a reallocation of resources toward defense, social protection, support for internally displaced persons, and maintenance of critical infrastructure. At the same time, a reduction in capital expenditures and investment activity has negatively affected long-term development prospects. Significant inter-community disparities were identified, particularly widening gaps in revenue indicators and budgetary self-sufficiency. Special attention is paid to communities that, despite possessing economic potential, demonstrate low or critical financial capacity due to managerial shortcomings, inadequate budget planning, and limited revenue diversification. It is substantiated that financial capacity depends primarily on the quality of municipal governance and strategic budgeting rather than solely on resource availability. Effective tax administration, revenue diversification, and expenditure rationalization are key determinants of financial sustainability during wartime and the post-war recovery period. 

financial capacity, territorial community, local self-government body, local budget 

The digital transformation of the social sphere has become one of the important directions of the state digital strategy aimed at forming an effective service digital state. Digitalization is the mechanism of the state digital strategy. It constitutes the transfer of all social services from offline to online. Accordingly, a theoretical and methodological justification of the institutional, organizational, and legal foundations of the digital transformation of the social sphere is the purpose of the article. The paper provides an overview of attempts to introduce electronic technologies, in particular e-government, in the practice of public administration during the years of independence of Ukraine. On this basis, the emphasis is on the main problems that have accumulated in the social sphere. The Strategy for Digital Transformation of the Social Sphere approved by the order of the Cabinet of Ministers of Ukraine dated October 28, 2020, is analyzed in detail. The purpose of the Strategy is to ensure European standards of functioning of social protection institutions, provision of social services, and financial stability of the social sphere, and to increase its transparency and optimization of its administrative expenditures. Particular attention is paid to creating a new mechanism for implementing social policy on a fundamentally new basis – the unified information system of the social sphere created taking into account the latest information and management technologies, common modern standards of service quality, and the ability to make effective organizational and structural decisions. All types of state social support and assistance should be administered through this system, which will radically change the social sphere of Ukraine. The main results of the digital transformation of the social sphere should be: first, a convenient and accessible social service for citizens and overcoming corruption in the social sphere; secondly, the optimization of social spending of the state. 

social sphere, e-government, digital transformation, social services, social protection, social service