Now it is important for territorial communities to look for ways to qualitatively improve the welfare of their population. Requirements for the criteria’s formation for a better understanding of how to measure population’s welfare of territorial communities are identified. The state regulation’s need of population’s welfare of territorial communities involves the use of a functional-territorial system of state regulation. This ensures optimal interaction between regional authorities, local governments and the state. It is emphasized that the principle of subsidiarity is basic for the formation of a conscious resident and responsible government, and also local self-government should be subject to state control, so-called «state supervision». To effectively regulate the population’s welfare by the state, it is necessary to understand the influence level of the main factors that determine the living conditions of community residents. The welfare level of territorial communities is analyzed taking into account subjective and objective factors, namely the influence of factor indicators on the effective welfare indicator is determined. The algorithm of state regulation of the population’s welfare of territorial communities (which is the purpose and scientific novelty of this article), which includes the criteria for prioritizing measures of state regulation to improve the population’s welfare of territorial communities at the appropriate which should ensure the strengthening of the bodies’ work of state regulators to preserve existing models of economic development on the basis of the implementation of innovation and investment model. General scientific research methods are used, such as empirical (questionnaire, description) and theoretical (analysis, synthesis, generalization, explanation). The practical significance is that certain provisions of the study can be used in practice, in particular territorial communities, and in the educational process, in the course of teaching, in particular sections of state regulation. Prospects of further research are methodical recommendations approbation for working with territorial communities.
Keywords: local self-government, population, territorial communities, welfare factors, state regulation.