scholarly journals CONCEPTUAL PRINCIPLES OF BUDGET DECENTRALIZATION STRATEGY DEVELOPMENT IN UKRAINE

2020 ◽  
Vol 19 (Vol 19, No 2 (2020)) ◽  
pp. 315-340
Author(s):  
Sergey CHIMSHIT ◽  
Liudmila GOLOVKOVA ◽  
Ihor GRABOVSKII ◽  
Alla YAKYMOVA
Keyword(s):  
Local Governments ◽  
Strategy Development ◽  
Social Infrastructure ◽  
Territorial Development ◽  
Skilled Workers ◽  
Territorial Structure ◽  
Local Budget ◽  
Decentralization Reform ◽  
The Impact ◽  
Budget Decentralization

The main strategic task of modernizing the system of public administration and territorial structure of power should be the creation of effective local selfgovernment, creating comfortable living conditions for citizens, providing them with high quality and affordable public services. Economically active businesses, a sufficient number of skilled workers, developed industrial and social infrastructure are the basis for successful community development. The society still lacks effective financial mechanisms to motivate local governments to the effectiveness of decisions on socio-economic territorial development. Given this, the article analyses the current financial problems of decentralization in Ukraine, the impact of national economic development and budget policy on the financial capabilities of local governments. Conceptual directions and resources for increasing the financial independence of the regions have been identified. It is established that the main result of the budget decentralization reform should be not so much more efficient allocation and redistribution of community financial resources, as greater interest and capacity of local governments to increase local budget revenues, find reserves, and improve the efficiency of tax administration and fees. Local self-governments must make decisions based on the following cause-andeffect relationship: the availability of sufficient resources in local budgets is a consequence of the level of economic activity in the region.

scholarly journals An estimation and analysis of a budgetary decentralization in Ukraine

2021 ◽  
Vol 2 (98) ◽  
pp. 89-110
Author(s):  
B. S. Huzar ◽  
◽  
О. М. Trus
Keyword(s):  
Local Governments ◽  
Capital Investment ◽  
Growth Index ◽  
Capital Investments ◽  
Local Authorities ◽  
Investment Activity ◽  
Vital Functions ◽  
Territorial Structure ◽  
Local Budget ◽  
Decentralization Reform

European and world experience testifies that the major element of reform of decentralization in Ukraine is reformation of local selfgovernment, creation of capable territorial communities, that must be able to satisfy the necessities related to the vital functions of habitants of settlements, and also properly to provide realization of their rights. The input of new mechanism of the budgetary adjusting changed the system of total balancing of all local budgets on the horizontal smoothing of taxability of territories depending on the level of receivabless on one habitant. The significant amount of budgetary facilities remains in the complete order of local authorities. Reform of interbudgetary relations stimulates territorial communities more effective to fill the estimates, become self-sufficient and carefully plan the charges. The local government independently decides on which needs spend budgetary funds, which is especially important for the development of united territorial communities. The article examines the essence of budget decentralization, its role and place in the development of united territorial communities. An assessment and analysis of budgetary decentralization in Ukraine has been carried out. The features of the introduction of budgetary decentralization in Ukraine are investigated, the main factors influencing the income and expenditures of local budgets are determined. Implementation of the decentralization reform, which has been ongoing in Ukraine for six years, includes a set of sectoral reforms, in particular, the reform of the administrative-territorial structure and the system of local self-government, and See also fiscal legislation. One of the key objectives of the reform is the voluntary unification of territorial communities and the formation of capable administrative-territorial units of the basic level. Thanks to the introduction of inter-municipal cooperation, the communities were able to consolidate their efforts and to implement common projects. In particular, 1354 territorial communities have signed 604 cooperation agreements. That is, the process of decentralization continues, they believed in it, and the resistance of opponents is being overcome. First, the reform of financial decentralization, local budget revenues show positive dynamics: in 2014 their volume was UAH 80.2 billion, then over six years, own revenues to the general fund of local budgets has increased by UAH 209.9 billion. and represented in 2020 UAH 290.1 billion. Total receipts from the general and special funds for this period increased by UAH 210.2 billion. This is a real instrument of influence on the achievement of results and responsibility for the trust of communities. The basis for the growth of revenues of local budgets was laid thanks to the changes adopted in 2015 to the Budget and Tax Codes of Ukraine regarding the transfer of additional budgetary powers to local governments and the consolidation of stable sources of income for their implementation. Financial decentralization in Ukraine has significantly accelerated the dynamics of investment activity. An important positive result of the reform of interbudgetary relations is the annual increase in investment resources of local budgets. After a sharp decline in investment activity in 2014, the volume of capital investments amounted to UAH 5.9 billion, while in 2020 their volume amounted to UAH 43.6 billion. On the average capital investments from local budgets in Ukraine for the years under study has increased by UAH 33.4 billion, the capital investment growth index was 7.39. Further implementation of the reform of budgetary decentralization and ensuring the effectiveness of the mechanism of budgetary regulation of socio-economic development requires expanding the rights of local authorities, strengthening their budgetary independence and determining their responsibility.

scholarly journals Tax decentralization under local government reform conditions

2020 ◽  
Vol 66 (5) ◽  
pp. 93-104
Author(s):  
G. Isanshyna ◽  
O. Dubynska
Keyword(s):  
Local Governments ◽  
Income Tax ◽  
Shadow Economy ◽  
Fiscal Decentralization ◽  
Personal Income ◽  
Personal Income Tax ◽  
Practical Result ◽  
Local Budget ◽  
Decentralization Reform ◽  
The Impact

The primary objective of the paper is to investigate the main directions of decentralization reform, trends in local budget revenues in Ukraine, to assess the impact of decentralization reform on the structure and composition of local budgets financial resources, to identify the ways of their optimization. The main components of decentralization reform, the main practical results of territorial and fiscal decentralization in Ukraine are formulated in this paper. Analysis of the development of voluntary territorial communities association in the country during the last five years is carried out. The principles of public administration and the development of normative regulation of local self-government, voluntary association of territorial communities and their cooperation are investigated. It is determined that the practical result of administrative-territorial decentralization is to ensure the creation of new capable territorial entities – united territorial communities. The practical result of tax decentralization is the increase of financial capacity of the united territorial communities. The dynamics of the share of local taxes and fees in own revenues of the general local budgets fund is considered, special attention is paid to such national tax as personal income tax. The dependence of local budgets on transfers from the state budget is noted. And all this on the basis of achievement the ratio of state and local budget revenues of most EU countries is 50:50. The directions of reducing the risk of financial unreliability of local governments under COVID-19 conditions are determined. The difficulties of tax administration of large taxpayers; the main factors determining the size of the shadow economy in the country are investigated. There is no direct relationship between the level of taxation in Ukraine and the level shadow economy. The assessment of the extent of concealment and incomplete reporting of domestic businesses according to the survey in the framework of the SHADOW project is made. The consequences of increasing shadow economy share in the country are determined. The experience of several European countries in personal income taxation is studied, the peculiarities of granting the right to apply the social tax benefit from the personal income tax is determined. Recommendations for optimizing the taxation of individuals in terms of taxation of dividends are provided in this paper.

ACTIVITIES, CONDITION AND CHALLENGES OF OTG IN THE CONDITIONS OF BUDGET DECENTRALIZATION

2017 ◽  
Author(s):  
Mariia Kutsyk ◽  
Keyword(s):  
Policy Development ◽  
Local Governments ◽  
Political System ◽  
Well Being ◽  
Budget Management ◽  
Tax Legislation ◽  
Rapid Transition ◽  
Decentralization Reform ◽  
The Impact ◽  
Budget Decentralization

The article is devoted to an important issue of today - the activities, development and unification of territorial communities, decentralization of budget management, the transfer of power to higher levels - lower. Attention is paid to the impact of decentralization on the development of local self-government, the positive and negative aspects of decentralization as of 2019-2020 and the analysis of activities during 2014-2020 are considered. Also, the state of OTG after the beginning of the reform and the impact of legislation on regional development are analyzed. The article also reflects the dynamics of total revenues. Much attention is paid to the problems of creating a revenue base for filling local budgets to meet the needs of the population and finding a reserve for filling. The issue of united territorial communities is not the first place among the discussions of financial analysts and among the general population. The rapid transition from a centralized type of budget management to decentralization indicates an increase in the capacity of local governments and maintaining their independence. Decentralization should allow for effective coordination of policy development and implementation in many functions, such as education, health, etc., as areas that are properly addressed and managed for change become effective. Effective decentralization reform requires significant efforts to bring about change, as there are a number of challenges to the growth of the community, the creation of an effective open political system, and the well-being of every citizen. Decentralization should lead to every community being innovative and creative in all aspects - new health services and policies, education systems, tax legislation, administrative resources, etc. Therefore, the issue is relevant and requires detailed study. Analyzing the impact of decentralized processes on local budgets of Ukraine, much attention is paid to the problems of creating an income base for filling local budgets and finding a reserve for filling. Also in the article we will analyze the actual revenues of the general fund of local budgets of Ukraine during 2013-2019, reflect a significant increase in total revenues.

scholarly journals Revenues of Local Budgets in Ukraine: The Essential Component and the Current Situation in the Framework of the Budget Decentralization Reform

2020 ◽  
Vol 11 (514) ◽  
pp. 331-337
Author(s):  
V. A. Yankovskyi ◽  
◽  
M. T. Shendryhorenko ◽  
Keyword(s):  
Research Process ◽  
Current Situation ◽  
The European Union ◽  
Essential Component ◽  
Theoretical Generalization ◽  
State And Local ◽  
Local Budget ◽  
Decentralization Reform ◽  
Main Components ◽  
Budget Decentralization

The article is aimed at studying the essential component of decentralization and budget revenues; determining the main results of the implemented reform of budget decentralization in Ukraine; analyzing the current situation of own revenues of local budgets. The following general scientific methods were used in the research process: theoretical generalization, comparison and grouping – to determine the essence of the concepts of «budget revenues», «decentralization» and disclosure of components of budget revenues; analysis – when considering own revenues of local budgets for 2014–2020 and the structure of incomes in the revenues of local budgets for January – July 2020; system approach – in the formation and disclosure of the essences of the main stages of the reform of budget decentralization in Ukraine. The views of various scientists on the concepts of «budget revenues» and «decentralization» are examined. It is determined that budget revenues are an aggregate of financial relations that participate in the process of distribution of part of GDP in order to form targeted cash funds at the level of the State and local self-government bodies, designed to finance their own functions and obligations defined in accordance with the current legislation. The main components of budget revenues are determined and their classification is provided. The main stages of the budget decentralization reform in Ukraine are defined and systematized, their detailed characterizations are provided. The analysis of own revenues of local budgets for 2014–2020 and revenues in local budget revenues for January – July 2020 was carried out, during which it was determined that local taxes, despite the introduced budget decentralization, comprise only about 30% in the structure of incomes in the revenues of the general fund of local budgets, while in some countries of the European Union this figure reaches 50–60%. Practical steps towards further implementation of the budget decentralization reform for local self-government bodies are proposed.

scholarly journals THE PROBLEM OF UNEMPLOYMENT IN RURAL AREAS: THE IMPACT OF DECENTRALIZATION REFORM

2021 ◽  
pp. 13-18
Author(s):  
Melnychuk A.L.
Keyword(s):  
Rural Areas ◽  
Community Action ◽  
Local Communities ◽  
External Support ◽  
Financial Policy ◽  
Tax Burden ◽  
Local Budget ◽  
Decentralization Reform ◽  
And Migration ◽  
The Impact

The impact of decentralization reform on unemployment in territorial communities formed in 2015–2020 as a result of the reform of the administrative-territorial system in Ukraine is considered. Focused on the problem of unemployment in rural areas in the context of the reform of the administrative-territorial system. The peculiarities of strategies for the development of grassroots territorial communities in terms of ensuring the creation of new jobs are highlighted. Emphasis is placed on the efforts to form non-agricultural employment in rural areas of newly created grassroots territorial communities in Ukraine. The peculiarities of community action plans aimed at combating unemployment and migration from the Ukrainian countryside are highlighted. The materials of surveys of territorial communities’ leaders 2019–2021 conducted by the analytical center of the All-Ukrainian Association of Joint Territorial Communities on the formation of policies to combat unemployment are analyzed. The peculiarities of budgetary and financial policy of grassroots territorial communities in Ukraine in the context of their influence on the fight against unemployment in rural areas are revealed. The impact of the COVID-2019 coronavirus pandemic on the economic development of newly formed grassroots territorial communities in Ukraine is reflected. The vision of the leaders of territorial communities on the consequences of the government’s introduction of a set of economic measures to reduce the tax burden on the economy and small and medium-sized businesses, which are related to counteracting the spread of coronavirus COVID-2019, was analyzed. Community leaders have identified an assessment of government measures to reduce the tax burden on the economy and small and medium-sized businesses and local budget losses caused by them, measures that will have the greatest impact on the labor market in local communities at the grassroots level. The ability of territorial communities to keep jobs in the field of medium and small business and the need for external support to local communities to combat corporate bankruptcies and the threat of unemployment have been identified.Key words: unemployment, rural environment, decentralization, territorial communities, development of territorial communities. Розглянуто вплив реформи децентралізації на безробіття у територіальних громадах, утво-рених у 2015–2020 рр. унаслідок реформи адміністративно-територіального устрою в Україні. Акцентовано увагу на проблемі безробіття у сільській місцевості у контексті реформи адміністративно-територіального устрою. Висвітлено особливості стратегій розвитку територіальних громад низового рівня у частині забезпечення створення нових робочих місць. Акцентовано увагу на зусиллях з формування несільськогосподарської зайнятості у сільській місцевості новостворених територіальних громад низового рівня в Україні. Виділено особливості планів дій громад, спрямованих на боротьбу з безробіттям та міграцією з українського села. Проаналізовано матеріали опитувань лідерів територіальних громад 2019–2021 рр., реалізованих аналітичним центром Всеукраїнської Асоціації ОТГ щодо формування політики боротьби із безробіттям. Розкрито особливості бюджетної та фінансової політики територіальних громад низового рівня в Україні у контексті їх впливу на боротьбу з безробіттям у сільській місцевості. Відображено вплив пандемії коронавірусної хвороби COVID-2019 на економічний розвиток новоутворених територіальних громад низового рівня в Україні. Проаналізовано бачення лідерів територіальних громад щодо наслідків запровадження урядом комплексу економічних заходів щодо зниження податкового навантаження на економіку та малий і середній бізнес, які пов’язані із протидією поширенню коронавірусної хвороби COVID-2019. Визначена оцінка лідерами громад урядових заходів щодо зниження податкового навантаження на економіку та малий і середній бізнес та втрат місцевих бюджетів, викликаних ними, заходів, які матимуть найбільший вплив на ринок праці у територіальних громадах низового рівня. Визначена спроможність територіальних громад зберегти робочі місця у сфері середнього та малого бізнесу та потребу у зовнішній підтримці територіальних громад для протидії банкрутствам підприємств та загрози зростання безробіття.Ключові слова: безробіття, сільська місцевість, децентралізація, територіальна громада, роз-виток територіальних громад.

scholarly journals CURRICULUM REFORM IN THE DECENTRALIZATION OF EDUCATION IN INDONESIA: EFFECT ON STUDENTS’ ACHIEVEMENTS

2021 ◽  
Vol 40 (1) ◽  
pp. 158-169
Author(s):  
Anggia Utami Dewi
Keyword(s):  
Learning Outcomes ◽  
Curriculum Reform ◽  
Local Governments ◽  
School Quality ◽  
Propensity Score Analysis ◽  
School Attendance ◽  
Education Quality ◽  
Improved Learning ◽  
Decentralization Reform ◽  
The Impact

This study examines the estimated effect of curriculum reform in the Indonesian secondary education after the implementation of the decentralization policy in 2001. Whilst decentralization reform is argued to be positive for the improvement of school quality and efficiency due to more autonomy given for provincial and local governments, the empirical evidence on such reform towards the improvement of students’ learning outcomes is very limited. Using the propensity score analysis, this study shows that the curriculum reform has not produced a substantial return in the aspect of improved learning outcomes. This finding resonates with the evidence from previous studies on the impact of decentralization on the education quality in Indonesia. Additionally, other findings present a positive effect of pre-school attendance on students’ performance and the crucial issue of persisting gap on the education quality between regions even after almost twenty years of decentralization in the country.

scholarly journals CONDITIONS AND FACTORS OF EFFECTIVE USE OF LOCAL BUDGET FUNDS DURING THE REFORM OF FINANCIAL DECENTRALIZATION

2021 ◽  
Author(s):  
Liudmyla Denishchenko
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Local Level ◽  
Significant Degree ◽  
Job Responsibilities ◽  
First Results ◽  
The Government ◽  
Local Budget ◽  
Decentralization Reform ◽  
Effective Use

The implementation of the financial decentralization reform in Ukraine, which is the most important component of the general reform of local self-government in Ukraine for seven years, already has the first results and materials for research and conclusions. The state has proposed stages of reform and further activities of local governments. The government ensures the declared national expenditures delegated to local councils and recognizes the significant degree of their independence in planning, creating and implementing their budget plans. However, at the local level there are a number of problems that lead to inefficiency or inexpediency of costly financial activities. The article considers the most significant, effective and universal conditions and factors for improving the efficiency of spending financial resources of local budgets in the implementation of local government reform in Ukraine. The reasons for the need to implement the reform of financial decentralization and the problems it should solve are presented. Among the described bases of increase of efficiency of use of means – legislative, organizational, resource. Their definition was made possible by studying the results of community spending management during the first years of the reform. Most of them have an organizational character, i.e. one that is possible for the community to implement as a cohesive social body at the local level, have a low level of costs or opportunities for external financing or co-financing. Factors of its implementation, author’s comments and evaluation of efficiency are provided to each defined condition. The most important among the basics of effective spending of local budgets are: the availability of necessary and quality legislation, preparation and use of motivated staff of local governments, creation and implementation of social dialogue in the community, comprehensive control and analysis of public spending, determining responsibility for job responsibilities relevant employees, use of foreign experience and best financial practices of Ukrainian communities, use of energy-saving technologies, optimization of local government maintenance costs. Each of the presented bases has the described factors of their implementation which are described in article. The use of such factors makes it possible to use the available on a possible basis the effectiveness of the use of local funds, an important component of the community’s own resources during the reform 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 Personal income tax: practice and problems of management in local budgets of Ukraine

2019 ◽  
pp. 169-174
Author(s):  
Nataliia Karpyshyn ◽  
Olha Nipialidi
Keyword(s):  
Community Involvement ◽  
Asset Management ◽  
Local Governments ◽  
Income Tax ◽  
Local Level ◽  
Personal Income ◽  
Personal Income Tax ◽  
Local Budget ◽  
Decentralization Reform ◽  
Tax Practice

Purpose. The aim of the article is investigation of the practice of tax income on individuals in the local budgets of Ukraine in the context of decentralized reform in order to identify the most pressing problems of collecting PITs and develop a proposal to increase its fiscal role at the local level. Methodology of research. The following methods are used to achieve this goal: analysis, synthesis and generalization – in the processing of literary, statistical, legislative and Internet sources on the topic of research; methods of systematization and generalization of data, comparison and detail – when conducting analysis of budget indicators; graphical and tabular methods – for visual representation of the processed data; abstract and logical method – to summarize the material presented and formulate conclusions. Findings. The fiscal role and factors of PIT growth in the local budgets of Ukraine during the period of decentralization reform have been determined. Local governments are found to be underutilizing the potential of PITs to replenish local budgets. The main reserves for the growth of local budget revenues from the PIT are substantiated, namely: solving the problem of illegal employment with the aim of legalizing income for taxation, improving cooperation with the SFSU bodies and improving the efficiency of tax control; improving community asset management; increasing transparency and enhancing community involvement in community governance. Originality. The main directions of activity of local self-government bodies that will contribute to the gradual increase in the volume of revenues from the personal income tax in the revenues of local budgets of Ukraine are identified. Practical value. The results of the study can be used in the activities of local governments and local financial authorities in developing a policy of increasing PIT (personal income tax) revenues in local budget revenues. Key words: personal income tax; local budgets; local budget revenues; local governments.

scholarly journals DEVELOPMENT OF RURAL AREAS IN CONDITIONS OF DECENTRALIZATION OF POWER IN UKRAINE

2021 ◽  
Vol 71 (4) ◽  
Author(s):  
Inna Tomashuk
Keyword(s):  
Social Services ◽  
Rural Areas ◽  
Local Governments ◽  
Rural Settlements ◽  
Balanced Development ◽  
Active Involvement ◽  
Rural Business ◽  
Territorial Structure ◽  
Decentralization Reform ◽  
Regional Authorities

The article considers measures of reorganization of the economic mechanism of territorial administration in the context of decentralization of power. It is indicated that the decentralization reform is directly related to the development and optimal use of the resource potential of rural areas. It is emphasized that one of the fundamental conditions for the independence of local governments is financial decentralization, which reflects the financial powers of regional authorities. It is stated that the process of voluntary unification of territorial communities has created the preconditions for the transformation of the territorial structure and subregional level. It is emphasized that the main alternatives to agriculture today are the spheres of construction, trade, social services, etc. It is highlighted that in the Ukrainian realities there is a significant untapped potential of inclusiveness in the form of self-organizational activity of rural territorial communities and productive activity of rural business in solving local socio-economic problems. Modern decentralization changes in the country and its regions are carried out by intensifying the self-government of territorial communities, which must clearly understand their own needs and the need to achieve balanced development of settlements, be sufficiently motivated as permanent residents and interested in economic growth and social prosperity. The leading feature of the development of rural settlements at the present stage should be inclusiveness, ie active involvement in the process of ongoing reforms of all actors, each of which is important and valuable, regardless of their level of socio-economic development and available potential. It is concluded that local communities can regulate the process of accumulation of funds, provision of appropriate services, based on short- and long-term planning. It can also be argued that decentralization should be seen as a factor that directly affects the diversification of rural development.

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