scholarly journals ESTIMATION OF FISCAL SPACE OF LOCAL BUDGETS IN THE CONTEXT OF UKRAINIAN REGIONS DEVELOPMENT

2017 ◽  
pp. 69-81
Author(s):  
Myroslav KHOMIAK
Keyword(s):  
Local Governments ◽  
Fiscal Decentralization ◽  
Intergovernmental Transfers ◽  
Economic Problems ◽  
Academic Literature ◽  
Fiscal Autonomy ◽  
Panel Regressions ◽  
Development Goals ◽  
Fiscal Space ◽  
Local Budget

Introduction. Fiscal decentralization, which is now actively being implemented in Ukraine, provides for increasing the level of fiscal autonomy of local budgets. In this context, it is necessary to assess the real possibilities of local governments to form a fiscal space, which should be understood as the ability to generate income and to implement rational expenditure in order to achieve regional development goals. Purpose. The goal of the article is a quantitative assessment of the fiscal space of local budgets to identify promising areas of fiscal decentralization in Ukraine. Methods. The theoretical basis of the article consists of foreign and domestic academic literature. As a methodological basis are used panel regressions for estimating the tax potential of regions and methods of structural analysis and comparisons - for investigation of trends in local budgets. Results. Formation of the fiscal space of local budgets in the article interpreted as a combination of realization of tax potential and restructuring of expenditures of local budgets. By using panel regressions are identified the regions with the highest tax potential. Based on studying the structure of local budget expenditures revealed that by highest fiscal space are characterized areas where industry is less developed and which are considered less economically successful. Conclusions. The study revealed that regions with low fiscal space and tax potential are forced to generate debt for solving their own financial and economic problems, while regions with high tax potential and greater fiscal space receive significant amounts of intergovernmental transfers and do not form a municipal debt. Despite this, was justified the necessity of the transition to a redistribution of financial resources on the goal-basis principle.

PROBLEMS OF LOCAL BUDGETS’ ORGANIZATION IN UKRAINE IN THE CONTEXT OF FINANCIAL DECENTRALIZATION

2017 ◽  
pp. 29-41
Author(s):  
Yurij RADELYTSKYJ
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Local Level ◽  
Intergovernmental Transfers ◽  
Financial Autonomy ◽  
Before And After ◽  
Local Budget ◽  
Expert Community

Introduction. Fiscal decentralization as the main vector of development of Ukraine in general and local government in particular has set scientific and expert community task of defining feasibility and effectiveness of the reforms and their compliance with requirements and needs of society. Purpose. Analysis of the tool of organization of local budgets in Ukraine due to decentralization process to define the main results of these innovations and make recommendations for improving the system. Results. Specific features of organization of local budgets in Ukraine in terms of local government reform are observed. It is made comparative analysis of formation and execution of local budgets before and after the reform. Peculiarities of formation of the revenue of local governments are examined. Tax revenue is defined as the main source of local budgets. It is analyzed the main characteristics of collection of major budget-taxes. The features of expenditure policies at the local level are investigated. The main problems of this process are defined. It is investigated the place and role of intergovernmental transfers as a part of local budgets. The features of forming of intergovernmental transfers and horizontal fiscal equalization of local budgets in consequence of financial decentralization are determined. General conclusions resulting from the study are made. Conclusion. Reform of the system of local budgets requires a comprehensive update of local government and simultaneous implementation of sectoral reforms. In the system of local budget revenues development and selection of algorithm of formation of a well-defined orientation to ensure financial autonomy and financial viability and its implementation on an ongoing basis is a priority. The task of reforming expenditure part of local budgets is orientation of financial resources to secure capital expenditures and implementing their own powers of local government.

Fiscal Decentralization in Transition Economies

2004 ◽  
pp. 126-141
Author(s):  
A. Chernyavsky ◽  
K. Vartapetov
Keyword(s):  
Public Finance ◽  
Transition Economies ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Government Control ◽  
Finance Reform ◽  
Fiscal Transfers ◽  
Fiscal Autonomy ◽  
Subnational Government ◽  
Tax Autonomy

By employing the methodology developed by the OECD the paper assesses the degree of revenue decentralization in Russia in comparison with other post-communist European countries. The paper provides theoretical arguments underpinning fiscal decentralization, analyzes the composition of subnational government revenues, the level of regional and local tax autonomy and types of intergovernmental fiscal transfers. The analysis presents the composition of revenues depending on the degree of subnational and local government control. In comparison with other transition countries fiscal decentralization in Russia is relatively low. It is concluded that Russia's public finance reform has not progressed towards providing greater fiscal autonomy for regional and local governments.

scholarly journals ASSESSMENT OF THE INFLUENCE OF LOCAL BUDGETS ON THE ECONOMIC DEVELOPMENT OF TERRITORIAL COMMUNITIES (ON THE EXAMPLE OF THE BUDGET OF THE CITY OF IRPIN)

2020 ◽  
Author(s):  
Oksana Lisnichuk ◽  
◽  
Vita Shvorak ◽  
Viktoriia Mazur ◽  
◽  
...  
Keyword(s):  
Local Governments ◽  
Specific Weight ◽  
Financial Economic ◽  
Economic Regulation ◽  
Economic Policies ◽  
Intergovernmental Transfers ◽  
Financial Independence ◽  
Economic Relationships ◽  
Local Budget ◽  
The City

The local budgets are an instrument of financial-economic regulation of the development of regions and the State as a whole. Both the efficient formation and administration of local budgets should be based on a combination of financial-economic relationships in the area of revenue generation, implementation of budget expenditures, the inter-budgetary relations and the development together with implementation of the balanced socio-economic policies directed towards ensuring the socio-economic growth of regions. The reform of budget decentralization has provided local governments with broader rights and new sources of financial resources, which has collectively increased the financial viability and autonomy of the regions. In this article article considers the peculiarities of the formation and implementation of local budgets (on the example of the budget of the city of Irpin). The sources of formation are described city budget revenues and directions of their use. In a section of revenue breakdown components of tax revenues on the main taxes and non-tax receipts of the local budget are analyzed. Specific weight of the intergovernmental transfers in the course of formation of income of local budgets is investigated. Analyses directions of use of budgetary resources by local governments. The main problems existing when forming revenues of local budgets are defined. Having analyzed the structure and dynamics of revenues and expenditures of the local budget. The revenues of the local budget of the city of Irpin have shown a growing dynamics, and expenditures tend to increase. The analysis shows that there are tendencies to increase their volume, which is certainly a positive aspect of the activities of local governments and decentralization reform. However, transfers make up an important part of the budget, which is negative, as the city budget is not fully independent. Of course, it is impossible to achieve full financial independence of the region in modern conditions, but it would be expedient to direct the vector of development to achieve financial independence. Analysis of the structure of expenditures by functional classification shows that during 2016-2019 most of the expenditures of local budgets were directed to the socio-cultural sphere. According to the analysis, the city of Irpin has a strong enough financial base to meet the needs of its residents. In addition, the analysis of the use of the city budget shows the diversity of expenditures and the presence of positive experience of community development.

scholarly journals FEATURES OF PLANNING AND IMPLEMENTATION OF LOCAL BUDGETS IN THE CONTEXT OFTHE BUDGET AND DECENTRALIZATION REFORMS

2017 ◽  
pp. 132-144
Author(s):  
Yuliia OSTRISHCHENKO
Keyword(s):  
Local Governments ◽  
Central Government ◽  
Poor Quality ◽  
Intergovernmental Transfers ◽  
Reform Implementation ◽  
Budget Reform ◽  
Subsidiarity Principle ◽  
Planning Methods ◽  
Local Budget ◽  
Budget Revenue

Introduction. Scarce local budget financial resources, lack of sufficient transparency of budget expenditures, and poor quality of public services provided by the central and local governments - all these factors require comprehensive governance reforms introduction primarily budget reform and powerdecentralization reform. Purpose. The aim of the article is to identify special traits and discover challenges of the local budgets planning and execution system, to analyze potential approaches to its improvement based on outcomes and effects of budget reform and local self-government reform implementation in Ukraine. Results. The article summarizes the tasks, measures and achievements of the local budgets reform and intergovernmental relation reform. The changes in the local budget revenue and expenditure structure were analyzed taking into account recent amendments to Budget and Tax Codes of Ukraine. The local budgets planning methods and approaches as well as procedures for fiscal equalization ofthe local government’s financial capacity were investigated; 2010-2017 reporting data on budget revenue and expenditures performance were analyzed. At the same time the article determines key budget parameters preliminarily included in draft 2018 Budget Law and medium-term Budget Declaration, in particular regarding local budgets and intergovernmental transfers and also represents review of progress achieved under the territorial communities’ amalgamation and establishment of direct interrelation between central government and newly formed amalgamated communities. Conclusion. According to the results ofthe research and analysis, the article substantiates the necessity of further local budget revenue amplification, the expediency of the budget decentralization considering budget subsidiarity principle, as well as the effectiveness of the new interbudgetary relation model.

scholarly journals Tax decentralization in Ukraine: problems and prospects

2020 ◽  
pp. 24-28
Author(s):  
Liubov PETYK ◽  
Andrii PETROVYCH ◽  
Ivanna PEDCHENKO
Keyword(s):  
Income Tax ◽  
Intergovernmental Relations ◽  
Fiscal Decentralization ◽  
Theoretical Concept ◽  
Intergovernmental Transfers ◽  
Tax Revenues ◽  
Budget Policy ◽  
Local Budget ◽  
Legislative Changes ◽  
Decentralization Reform

The paper examines the essence of the concept of “tax (fiscal) decentralization” according to different views of domestic and foreign scholars. The theoretical concept of tax (fiscal) decentralization is analyzed and defined. The stages of the legislative basis for tax decentralization reform in Ukraine are studied, in particular, the norms of the Law “On Amendments to the Budget Code of Ukraine on Reform of Intergovernmental Relations” and “The Concept of Reforming Local Self-Government and Territorial Organization of Power” are considered and analyzed. It is determined what types and amounts of tax revenues go to local budgets according to the introduced legislative changes. The dynamics of own revenues of local budgets during 2014–2019 is studied and the diagram is constructed. The dynamics and structure of tax revenues to local budgets by types of taxes during the period of decentralization reform in Ukraine are considered. Revenues for such types of taxes as income tax, state duty, environmental tax, domestic taxes, local taxes, personal income tax and the general dynamics of tax revenues were studied. The dynamics of revenues to the consolidated budget of Ukraine is studied. The dynamics of the share of local budget revenues in the consolidated budget revenues of Ukraine is calculated and analyzed. A comparison of local budget revenues and intergovernmental transfers during the period of decentralization reform was made. As a result, the lack of orientation of the country's budget policy to the policy of fiscal decentralization was confirmed. The problems of tax decentralization have been identified, among which the main problem is the lack of orientation of the country's budget policy to the policy of fiscal decentralization. Measures to improve the process of tax decentralization in Ukraine have also been proposed, among which the development of such measures that would allow local budgets to receive both additional tax opportunities and optimize expenditures is a priority.

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.

scholarly journals PRIORITIES FOR THE DISTRIBUTION OF INTERBUDGETARY TRANSFERS UNDER THE CONDITIONS OF FISCAL DECENTRALIZATION IN UKRAINE

2020 ◽  
Vol 1 ◽  
pp. 35-45
Author(s):  
Yana Sarnetska
Keyword(s):  
Economic Development ◽  
Local Governments ◽  
Quantitative Methods ◽  
Fiscal Decentralization ◽  
Intergovernmental Transfers ◽  
Main Instrument ◽  
Definition Of ◽  
The Impact ◽  
Quantitative And Qualitative Methods

The article is devoted to the problem of the distribution of intergovernmental transfers in Ukraine, taking into account fiscal decentralization trends. To perform the delegated functions, local governments need to have sufficient funding. However, the revenues of local budgets are insufficient to cover all necessary expenses. Therefore, inter-budget transfers, which in Ukraine are the main instrument of financial equalization, play an important role in ensuring the implementation of delegated powers by local governments. The aim of the article is determination of the priorities for the distribution of intergovernmental transfers in Ukraine in the context of fiscal decentralization. The research methodology combines quantitative and qualitative methods. Using quantitative methods, the principles of fiscal decentralization in Ukraine are observed through the mechanism of distribution of intergovernmental transfers. Using high-quality methods and based on the analysis, the priorities of the distribution of inter-budget transfers in the context of fiscal decentralization are formulated. An analysis of foreign publications on fiscal decentralization has shown that the uncertainty of priorities in this area reduces the effectiveness of fiscal decentralization and inhibits the economic development of regions. Prioritization of the distribution of intergovernmental transfers is preceded by the definition of principles for the distribution of intergovernmental transfers. Based on the results of a quantitative analysis, namely, the identified dynamics of fiscal decentralization indicators and the impact of the distribution of intergovernmental transfers on economic development, the following priorities for the distribution of intergovernmental transfers in fiscal decentralization are identified: supporting the prevalence of targeted transfers over non-targeted transfers, increasing the share of capital transfers, increasing the accountability of local authorities self-government regarding the use of funds received in the form of intergovernmental budget transfers.

Intrinsic feature of financial decentralization and its impact on the formation of local budget’s revenues

2019 ◽  
pp. 113-119
Author(s):  
Iryna Tsymbaliuk
Keyword(s):  
Local Governments ◽  
Fiscal Decentralization ◽  
Economic Science ◽  
Tax Legislation ◽  
Decentralization Policy ◽  
State And Local ◽  
Local Budget ◽  
Definition Of ◽  
Budget Decentralization

The article substantiates that the term financial decentralization remains insufficiently defined in the studies of Ukrainian scientists. In particular, the concepts of “financial decentralization”, “fiscal decentralization”, “budget decentralization” in domestic economic science are used in parallel. At the same time, it is argued that financial decentralization, compared to budget and fiscal ones, is a broader concept, encompassing the entire system of financial interaction between the state and local governments. The analysis of the financial decentralization process in Ukraine is presented. The stages of financial decentralization in Ukraine are distinguished; dynamics of local budget revenues and expenditures in the context of financial decentralization is outlined; efficiency of financial decentralization processes is determined. Characterization of key provisions of the adopted legislation, which became the basis for financial relations transformation in the country and its regions, allowed to identify the stages of financial decentralization process with the definition of time limits: the first stage – the formation of the financial decentralization policy (1991-2000); the second is the convergence of centrifugal processes (2001-2009); the third is the renovation of decentralization processes (2010-2014); the fourth is the financial decentralization activation (since 2015). The analysis of the dynamics indicators of local budgets` revenues showed that over the past five years, the financial decentralization level of local budgets has increased due to changes in the budget and tax legislation, which came into force in 2015 and stimulated local authorities to expand their own revenue bases. At the same time, the paper establishes that the processes of financial decentralization in Ukraine have become irreversible, although they lack the systematic nature.

scholarly journals Reviving Leviathan: Fiscal Federalism and the Growth of Government

2003 ◽  
Vol 57 (4) ◽  
pp. 695-729 ◽  
Author(s):  
Jonathan Rodden
Keyword(s):  
Government Spending ◽  
Tax Competition ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Public Expenditures ◽  
Intergovernmental Transfers ◽  
Tax Base ◽  
Local Taxation ◽  
State And Local

AbstractThis article revisits the influential “Leviathan” hypothesis, which posits that tax competition limits the growth of government spending in decentralized countries. I use panel data to examine the effect of fiscal decentralization over time within countries, attempting to distinguish between decentralization that is funded by intergovernmental transfers and local taxation. First, I explore the logic whereby decentralization should restrict government spending if state and local governments have wide-ranging authority to set the tax base and rate, especially on mobile assets. In countries where this is most clearly the case, decentralization is associated with smaller government. Second, consistent with theoretical arguments drawn from welfare economics and positive political economy, I show that governments grow faster as they fund a greater portion of public expenditures through intergovernmental transfers.

scholarly journals Desentralisasi Fiskal, Tax Efiort dan Pertumbuhan Ekonomiz Studi Empirik Kabupaten/Kota di Indonesia 2001-2008

2010 ◽  
Vol 11 (1) ◽  
pp. 21-34
Author(s):  
D. S. Priyarsono ◽  
Budi Asih ◽  
Neli Agustina
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Intergovernmental Transfers ◽  
Positive Role ◽  
Data Set ◽  
Time Period ◽  
Regional Governments

Indonesia has implemented a new policy of regional autonomy and fiscal decentralization for almost ten years. One of the objectives of this fiscal decentralization is to give the full autonomy to local governments in spending and managing their revenues. The local governments have the authority to explore and collect their own-source revenue ('Pendapatan Asli Daerah', or PAD), i.e. through the improvement of their tax effort. The objectives of this study are: (i) to describe the fiscal performance of districts and municipalities in Indonesia, both in the revenue as well as the expenditure sides, (ii) to analyze the effects of intergovernmental transfers (’dana perimbangan', or balancing fund from the central to regional governments) on regional tax efforts, and (iii) to identify the regional economic growth elasticity of intergovernmental transfers and own-source revenue. This study employs a panel data set of 336 districts and municipalities covering the whole area of Indonesia over the time period of 2001-2008. The results show a relatively low contribution of PAD to regional revenues, indicating high fiscal dependency of regional governments on the central government. Intergovernmental transfers positively effect tax efforts. The result of the elasticity analysis also indicates a positive role of the transfers as stimuli to economic growth.

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