scholarly journals ASSESSMENT OF THE IMPACT OF BUDGET DECENTRALIZATION ON SUSTAINABLE DEVELOPMENT OF TERRITORIAL COMMUNITIES IN UKRAINE

2021 ◽  
Vol 7 (4) ◽  
pp. 8-17
Author(s):  
Ding Xin ◽  
Tetiana Koliada ◽  
Ganna Muzychenko
Keyword(s):  
Fiscal Decentralization ◽  
Local Level ◽  
Cost Effective ◽  
Financial Independence ◽  
Development Management ◽  
Theoretical Approaches ◽  
Territorial Unit ◽  
Composition And Structure ◽  
The Impact ◽  
Budget Decentralization

Peculiarities of territorial community (hromada) development management are revealed and theoretical approaches to budget decentralization in Ukraine are substantiated. Based on the analysis of the composition and structure of local budgets, as well as the calculation of financial independence of territorial communities (hromadas), it is proved that the current budget system of Ukraine is characterized by a high degree of budgetary resources centralization, which does not provide real independence. Building an efficient model of fiscal decentralization consists in determining the tax potential of a separate administrative-territorial unit (territorial community).  For further success of decentralization, it is necessary to determine the optimal amount of government functions that are appropriate and cost-effective to delegate to the appropriate local level on a permanent basis, thereby converting them into the local government's own functions.Purpose of study.  The aim of the study is to assess the impact of budget decentralization on the sustainable development of territorial communities (hromadas), to determine its relationship with changes in the administrative-territorial structure of Ukraine and to strengthen the financial independence of newly established institutions (amalgamated hromadas).Methodology. In the course of the research the following methods were used: analogy and comparative analysis to identify the features of the implementation of fiscal decentralization in different countries of the world and in Ukraine; settlement and constructive – used in determining the indicators of territorial communities' financial independence in the process of budget decentralization implementation in Ukraine; abstract-logical to reveal the main threats to the financial security of territorial communities and justify proposals and recommendations to ensure their sustainable development.Results of the study. The study showed the presence of certain features in the implementation of budget decentralization reform in Ukraine in modern conditions due to a number of macroeconomic and institutional factors with a long-term and globalization nature of manifestation. They led to the emergence of clearly defined trends and patterns of change in the choice of regional development financial instruments, which will further improve the process of development management of Ukrainian administrative-territorial units in terms of decentralization to achieve the priorities of socio-economic development.Peculiarities of territorial community development management are revealed and theoretical approaches to budget decentralization in Ukraine are substantiated. Based on the analysis of the local budget revenues composition and structure, as well as the calculation of the territorial community financial independence indicators, it was proved that the modern budget system of Ukraine is characterized by a high degree of centralization of budgetary resources.It has been substantiated that the difficulties arising in the financing of state budget expenditures under both unitary and federal systems are largely due to the imperfection or inconsistency of certain provisions of the Basic Law (the Constitution) with the current state of interstate relations and the domestic political situation.Conclusion. It is emphasized that the main problem to be solved to build an effective and efficient model of fiscal decentralization is to determine the tax potential of a particular administrative-territorial unit (territorial community) and the optimal volume of state functions that are expedient and cost-effective to delegate to the local level as own functions of local self-government.

scholarly journals INFLUENCE OF DECENTRALIZATION ON STRUCTURE AND DYNAMICS OF INCOME AND EXPENDITURES OF LOCAL BUDGETS

2018 ◽  
pp. 20-31
Author(s):  
Anna MARCHUK
Keyword(s):  
Structural Changes ◽  
Public Services ◽  
Fiscal Decentralization ◽  
Local Level ◽  
Structure And Dynamics ◽  
Tax Revenues ◽  
Local Budget ◽  
Decentralization Reform ◽  
The Impact ◽  
Strategic Goal

Introduction.The objective reason for the existence of an institution of local budgets is an increase in the efficiency of the provision of public services guaranteed by the state due to the proximity of such services to the immediate consumer. This process is based on the principle of subsidiarity, requires a sufficient level of financial security of local budgets and demonstrates the basic idea of the concept of fiscal decentralization. The decentralization reform is systematic and involves structural changes in various spheres of public life. The object of research of this article is the impact of changes in tax and budget laws aimed at decentralization on structure and dynamics of income and expenditures of local budgets. Purpose.The purpose of the article is to identify trends, priorities and unresolved issues in financing local budget expenditures, compare dynamics of expenditures with dynamics and structural changes in local budget revenues. Results. In the course of the research, the expenditures and revenues of local budgets of Ternopil region during 2004-2017 were analysed, comparison with trends in Ukraine was made. It has been established that due to slowed down economic growth and a systematic decrease in the share of own revenues in recent years, the amount of funding for institutions and activities in the social and cultural sphere has been reduced and the transfer of important functions to the local level was not accompanied by the transfer of sufficient amount of financial resources. Conclusions.The strategic goal of decentralization is to ensure the availability and proper quality of public services for all categories of the population. The decentralized budget system should function on the basis of a coordinated, unified national cooperation policy for many independent institutions, each of which has a legislatively defined sphere of autonomy. Since tax revenues form the main volume of own revenues of local budgets, the issue of improving the efficiency of tax administration comes to the forefront in the context of decentralization changes. Therefore, on the way to ensuring the increase of tax revenues, the strategic goal of local authorities should be to promote economic development of regions.

scholarly journals An Overview of the Fiscal Decentralization in the Context of the State and Local Taxes in Ukraine

2021 ◽  
Vol 1 (516) ◽  
pp. 251-257
Author(s):  
T. V. Ponomarova ◽  
◽  
M. A. Komlieva ◽  
Keyword(s):  
Fiscal Decentralization ◽  
Local Level ◽  
State Level ◽  
The State ◽  
Local Taxes ◽  
Tax Revenues ◽  
State And Local ◽  
Legislative Changes ◽  
Decentralization Reform ◽  
The Impact

One of the key elements of the analysis of the efficiency of reforms at the State level is the effectiveness and a shift in quantitative indicators of the relevant statistical categories. In Ukraine, the period after 2014 is considered to be the time of legislative changes and reforms. Among them, according to experts and politicians, the most successful is the decentralization reform. Its implementation is based primarily on changes in the taxation system both at the national and local levels. Accordingly, the main indicator of achieving the goals of fiscal decentralization can be considered changes in the structure of tax redistribution between the local and the State budgets. This article provides an assessment of the level and dynamics of the main types of taxes as to their proportion between different levels of fiscal centralization. In the course of the research, a comparative analysis of rates and monetary measurement of both the national and local taxes and fees was carried out. The authors account tax revenues in a geographical context and during the last eight years, which allows assessing the impact of the reform on the amount of taxes collected, identifying the leading regions, as well as tracking the taxation trends. As a result of the research, it is found out that fiscal decentralization since the beginning of its implementation has been a significant factor in the growth of tax revenues in local budgets. Nevertheless, personal income tax prevails among fiscal fillers of budgets at the local level, so the problems of unemployment and lack of jobs in times of coronavirus crisis pose a challenge for the financial security of territorial communities. Further research on the topic is considered promising given the effectiveness of combining the benefits of fiscal decentralization with the relevant instruments of the State support to increase the local budget funds.

scholarly journals Influences on the policy process in local government in Vietnam: The case of low-income housing policy in Da Nang City from 2005-2013

2021 ◽  
Author(s):  
◽  
Thi Ha Vy Nguyen
Keyword(s):  
Local Government ◽  
Housing Policy ◽  
Low Income ◽  
Policy Process ◽  
Local Level ◽  
Critical Role ◽  
City Government ◽  
Theoretical Approaches ◽  
The Impact ◽  
Low Income Housing

<p>There is a growing literature on the policy process at the central level in Vietnam but less attention is paid to exactly how policy gets shaped and implemented at the local level in the specific culture and context of Vietnam and the evolving role of the one-party state. Accordingly, this thesis examines the development of low-income housing policy in Da Nang City from 2005 to 2013 in order to understand the critical influences on the policy process at a local government. It employs qualitative techniques to analyse data collected from interviews and conversations with the participants in the policy process and a collection of published and unpublished documents relating to the process.  The findings show that it is possible to apply Hofferbert’s (1974) funnel of causality model with some adjustments, based on insights from other theoretical approaches, to understand influences on the policy process. The significant influences include socio-economic conditions (particularly rapid urban population growth and the impact of urban renewal), which are shaped by some key historical and geographical features, institutional arrangements (especially the relationship between central and local government), and a network of policy actors centred on policy elites.  This study contributes to the literature in three ways. Firstly, although space for policy innovation was constrained by the authority of central government, the city government in fact enjoyed significant autonomy in policy implementation and the central–local relationship had room for policy experimentation and learning, which was still an effective way to change policy at both central and local levels. Secondly, local leaders in Vietnam could have a critical role in re-developing and implementing policies. This finding differs from the conventional wisdom that policymaking in Vietnam is collective and consensus-based. In this case, a strong policy leader could impose his will on the whole local state apparatus. Thirdly, the study also shed light on the opportunities for policy learning in the developing relationship between the state and private sectors in Vietnam. Faced with profit-driven private developers, the local government had to experiment with various incentives to ensure their participation in developing low-cost housing. Comparing the policy outcome before and after the private sector’s participation suggests that low-income housing can be developed in partnership with the private sector, given appropriate government policies. The findings of this study offer some implications for people in and outside Vietnam’s party and government systems, who want to influence public policy in Vietnam.</p>

scholarly journals Fiscal Decentralization and Gender Parity in Developing Asia

2021 ◽  
pp. 35-52
Author(s):  
Sidra Naeem ◽  
Mahnaz Muhammad Ali
Keyword(s):  
Local Governments ◽  
Fiscal Decentralization ◽  
Developing Economies ◽  
Local Level ◽  
Goods And Services ◽  
Gender Parity ◽  
And Gender ◽  
And Control ◽  
The Impact ◽  
Control Of Corruption

The traditional fiscal decentralization theorem claims that decentralized government can provide the goods and services at local level more efficiently. However, empirically it is still to explore that how fiscal decentralization affects gender parity. This study empirically investigates the impact of fiscal decentralization on gender parity in developing economies of Asia, Armenia, Azerbaijan, Indonesia, Iran, Kazakhstan, Kyrgyz, Mongolia, Myanmar, Thailand and Turkey. The study used dynamic penal da ta technique namely system GMM over the period of 2006-2020. The multidimensionality of fiscal decentralization is captured through three measures of fiscal decentralization i.e. expenditure decentralization, revenue decentralization and composite decentralization. Further, it also examines the complementarity between fiscal decentralization and control of corruption to increase the gender parity. The results of the analysis show that expenditure decentralization is increasing the gender parity in developing economies of Asia. Additionally, control of corruption is a necessary reform to get the desired fruits of fiscal decentralization. Countries must focus on corruption aspect of local governments in implementing the expenditure, revenue and composite decentralization.

scholarly journals Modern concepts of budget decentralization

2020 ◽  
pp. 119-127
Author(s):  
Valeriia Volenko
Keyword(s):  
Fiscal Decentralization ◽  
Local Level ◽  
Financial Control ◽  
Theoretical Substantiation ◽  
Advantages And Disadvantages ◽  
Financial Autonomy ◽  
Or Methodology ◽  
European Standards ◽  
Decentralization Reform ◽  
Budget Decentralization

Actuality of the theme of the research. Ukraine's European integration process involves a series of reforms, one of which is budget decentralization. It must ensure the financial autonomy and capacity of local communities in accordance with European standards. The statement of the problem. Carrying out budgetary decentralization reform requires a detailed study of the concept's origins to understand its essence, as well as to compare it with financial and fiscal decentralization. The analysis of the last researches and the publications. Scientists such as M. Bell, V. Bodrov, J. Buchanan, R. Gatti, M. Derkach, R. Musgrave, W. Oates, P. Samuelson, and C. Tiebout, R. Fisman and others have devoted their scientific works to the issues of theoretical substantiation of the provisions of fiscal decentralization. The statement of the purpose the research. The main purpose of the article is to analyze the conceptual provisions of budget, fiscal and financial decentralization and their correlation. Research method or methodology. The research methods that are used in the article include comparative analysis, generalizations, grouping, comparisons, etc. The results of the work. The article deals with the process of becoming a concept of "fiscal decentralization". It is compared with the concept of "financial decentralization", and it is proved that they are synonymous. The concept of "budget decentralization" is considered and its relation with the concept of fiscal and financial decentralization is determined. The advantages and disadvantages of budget decentralization are identified. Conclusions. Thus, the results of the studying show that the concepts of fiscal and financial decentralization are synonymous. Instead, budget decentralization is a component of fiscal decentralization. One of the problems of introducing budget decentralization is the ability of local authorities to abuse their own position, to commit corruption. That’s why, it is necessary to establish state financial control at the local level.

Fiscal powers of municipalities in Russia’s resource-rich regions and fixed capital investment

2020 ◽  
pp. 129-146
Author(s):  
Evgeny N. Timushev
Keyword(s):  
Economic Development ◽  
Capital Investment ◽  
Fiscal Decentralization ◽  
Local Level ◽  
Private Investment ◽  
Optimal Level ◽  
General Purpose ◽  
Fixed Capital ◽  
Fixed Capital Investment ◽  
The Impact

The article considers the nature and limits of the impact local fiscal decentralization exerts on private fixed capital investments in resource-rich Russia’s regions. The relevance of this topic is due, firstly, to the fact that sufficient expenditure and revenue powers at the local level ensure sustainable economic development, and secondly, the lack of research on relationship between investments and local fiscal decentralization in Russia. The study confirms the existence of an inverted U-shaped curve in the investment-decentralization association for the group of resource-rich regions as well as the superiority of revenue decentralization over expenditure decentralization in terms of its impact on economic development. For 2009—2016, investments were the highest when local fiscal decentralization was 46—47% and 43—51% in expenditure and revenue aspects, respectively (for Russia as a whole, 35—36% and 33—34%). Tax revenues in those figures do not exceed 30 p.p., the rest is occupied by earmarked grants (subsidies) and, especially, general-purpose grants (“dotatsii”). The excess of the optimal level of revenue decentralization over the expenditure one in resource-rich regions is explained by drivers of relatively large local powers there — less dependence on federal transfers, low regional tax burden, and greater elasticity of regional fiscal policy to external factors. The overall excess of optimal levels in comparison to Russia as a whole is explained by high local demand for both differentiation of expenditures and intraregional intergovernmental redistribution in those regions. Reduction of fiscal decentralization for 2008—2018 curbed private investment. The greatest losses were incurred by lack of revenue decentralization in the resource-rich regions, which could have reached more than 80% of the median investments.

scholarly journals Influences on the policy process in local government in Vietnam: The case of low-income housing policy in Da Nang City from 2005-2013

2021 ◽  
Author(s):  
◽  
Thi Ha Vy Nguyen
Keyword(s):  
Local Government ◽  
Housing Policy ◽  
Low Income ◽  
Policy Process ◽  
Local Level ◽  
Critical Role ◽  
City Government ◽  
Theoretical Approaches ◽  
The Impact ◽  
Low Income Housing

<p>There is a growing literature on the policy process at the central level in Vietnam but less attention is paid to exactly how policy gets shaped and implemented at the local level in the specific culture and context of Vietnam and the evolving role of the one-party state. Accordingly, this thesis examines the development of low-income housing policy in Da Nang City from 2005 to 2013 in order to understand the critical influences on the policy process at a local government. It employs qualitative techniques to analyse data collected from interviews and conversations with the participants in the policy process and a collection of published and unpublished documents relating to the process.  The findings show that it is possible to apply Hofferbert’s (1974) funnel of causality model with some adjustments, based on insights from other theoretical approaches, to understand influences on the policy process. The significant influences include socio-economic conditions (particularly rapid urban population growth and the impact of urban renewal), which are shaped by some key historical and geographical features, institutional arrangements (especially the relationship between central and local government), and a network of policy actors centred on policy elites.  This study contributes to the literature in three ways. Firstly, although space for policy innovation was constrained by the authority of central government, the city government in fact enjoyed significant autonomy in policy implementation and the central–local relationship had room for policy experimentation and learning, which was still an effective way to change policy at both central and local levels. Secondly, local leaders in Vietnam could have a critical role in re-developing and implementing policies. This finding differs from the conventional wisdom that policymaking in Vietnam is collective and consensus-based. In this case, a strong policy leader could impose his will on the whole local state apparatus. Thirdly, the study also shed light on the opportunities for policy learning in the developing relationship between the state and private sectors in Vietnam. Faced with profit-driven private developers, the local government had to experiment with various incentives to ensure their participation in developing low-cost housing. Comparing the policy outcome before and after the private sector’s participation suggests that low-income housing can be developed in partnership with the private sector, given appropriate government policies. The findings of this study offer some implications for people in and outside Vietnam’s party and government systems, who want to influence public policy in Vietnam.</p>

Regulatory and sustainability initiatives lead to improved polyaminopolyamide epichlorohydrin (PAE) wet-strength resins and paper products

TAPPI Journal ◽  
2018 ◽  
Vol 17 (09) ◽  
pp. 519-532 ◽  
Author(s):  
Mark Crisp ◽  
Richard Riehle
Keyword(s):  
Health And Safety ◽  
Cost Effective ◽  
Worker Safety ◽  
Regulatory Requirements ◽  
Wet Strength ◽  
The Past ◽  
Consumer Safety ◽  
Federal Institute ◽  
Sustainability Initiatives ◽  
The Impact

Polyaminopolyamide-epichlorohydrin (PAE) resins are the predominant commercial products used to manufacture wet-strengthened paper products for grades requiring wet-strength permanence. Since their development in the late 1950s, the first generation (G1) resins have proven to be one of the most cost-effective technologies available to provide wet strength to paper. Throughout the past three decades, regulatory directives and sustainability initiatives from various organizations have driven the development of cleaner and safer PAE resins and paper products. Early efforts in this area focused on improving worker safety and reducing the impact of PAE resins on the environment. These efforts led to the development of resins containing significantly reduced levels of 1,3-dichloro-2-propanol (1,3-DCP) and 3-monochloropropane-1,2-diol (3-MCPD), potentially carcinogenic byproducts formed during the manufacturing process of PAE resins. As the levels of these byproducts decreased, the environmental, health, and safety (EH&S) profile of PAE resins and paper products improved. Recent initiatives from major retailers are focusing on product ingredient transparency and quality, thus encouraging the development of safer product formulations while maintaining performance. PAE resin research over the past 20 years has been directed toward regulatory requirements to improve consumer safety and minimize exposure to potentially carcinogenic materials found in various paper products. One of the best known regulatory requirements is the recommendations of the German Federal Institute for Risk Assessment (BfR), which defines the levels of 1,3-DCP and 3-MCPD that can be extracted by water from various food contact grades of paper. These criteria led to the development of third generation (G3) products that contain very low levels of 1,3-DCP (typically <10 parts per million in the as-received/delivered resin). This paper outlines the PAE resin chemical contributors to adsorbable organic halogens and 3-MCPD in paper and provides recommendations for the use of each PAE resin product generation (G1, G1.5, G2, G2.5, and G3).

Exploring the Benefits of Early Contractor Involvement (ECI) and the Mechanism for Automated 5D BIM Quantification Process in Offsite Modular Construction

2016 ◽  
Author(s):  
Tochukwu Moses ◽  
David Heesom ◽  
David Oloke ◽  
Martin Crouch
Keyword(s):  
Effective Means ◽  
Cost Effective ◽  
Modular Construction ◽  
Automated Quantification ◽  
Building Information ◽  
Project Risks ◽  
Value Add ◽  
The Uk ◽  
The Impact ◽  
Level 2

The UK Construction Industry through its Government Construction Strategy has recently been mandated to implement Level 2 Building Information Modelling (BIM) on public sector projects. This move, along with other initiatives is key to driving a requirement for 25% cost reduction (establishing the most cost-effective means) on. Other key deliverables within the strategy include reduction in overall project time, early contractor involvement, improved sustainability and enhanced product quality. Collaboration and integrated project delivery is central to the level 2 implementation strategy yet the key protocols or standards relative to cost within BIM processes is not well defined. As offsite construction becomes more prolific within the UK construction sector, this construction approach coupled with BIM, particularly 5D automated quantification process, and early contractor involvement provides significant opportunities for the sector to meet government targets. Early contractor involvement is supported by both the industry and the successive Governments as a credible means to avoid and manage project risks, encourage innovation and value add, making cost and project time predictable, and improving outcomes. The contractor is seen as an expert in construction and could be counter intuitive to exclude such valuable expertise from the pre-construction phase especially with the BIM intent of äóÖbuild it twiceäó», once virtually and once physically. In particular when offsite construction is used, the contractoräó»s construction expertise should be leveraged for the virtual build in BIM-designed projects to ensure a fully streamlined process. Building in a layer of automated costing through 5D BIM will bring about a more robust method of quantification and can help to deliver the 25% reduction in overall cost of a project. Using a literature review and a case study, this paper will look into the benefits of Early Contractor Involvement (ECI) and the impact of 5D BIM on the offsite construction process.

Economic behavior of households and their welfare: models and forms of interaction

2020 ◽  
pp. 3-8
Author(s):  
Maryana Bil ◽  
Olha Mulska
Keyword(s):  
Economic Growth ◽  
Social Protection ◽  
Well Being ◽  
Central Place ◽  
Economic Behavior ◽  
Human Potential ◽  
Modern Theory ◽  
Economic Behaviour ◽  
Theoretical Approaches ◽  
The Impact

The article defines the content of welfare as a measure of socially oriented efficiency of economic growth, which reflects the appropriate level of providing the population with material and spiritual goods with the formation of favourable conditions for human development and capitalization of human potential in a competitive mobile space. The modern theory of welfare testifies to the deepening of scientific discussions on the transformation of economic welfare into mobile and inclusive, as well as the opposition of competitive and social protection welfare policy. Another milestone in the evolution of welfare theory is the individualization of its provision. Conditions of competition and mobility increase the importance of households in providing their well-being with further reflection on the processes of economic growth of the community, region, and state. This gives grounds to actualize the issues of household welfare research and strengthening economic growth based on behavioural economics. The needs, interests, motives, and incentives determine the economic behaviour of households. At higher levels, it defines an economic culture that is closely linked to the national mentality. In this regard, the main models of economic and social behaviour of households – socialization, adaptation, integration, values, regulation, and the definition of financial development strategies are outlined. Theoretical approaches to the explanation of economic behaviour are generalized, namely religious-ethical, psychological, substantive theories, theories of motivations and acquired needs, process theories, theories of justice, and others. Based on the ideas of foreign scientists, the main determinants of the economic policy of households are proposed. Political, stabilizing, and economic determinants are distinguished in the group of general determinants. In the group of determinants directly related to households, the financial, demographic, cultural, social, empirical, and psychological are suggested. The author’s emphasis is placed on the importance of the impact of financial determinants of the households’ economic behaviour, the central place among which is occupied by savings.

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