Ukrainian regions’ budget security in the conditions of public administration decentralization

2019 ◽  
pp. 106-114
Author(s):  
Yuliya Tymchyshyn
Keyword(s):  
Public Administration ◽  
Local Governments ◽  
Public Funding ◽  
Threat Assessment ◽  
The State ◽  
State Budget ◽  
Tax Revenues ◽  
Regional Budget ◽  
Per Capita ◽  
Local Budget

The significance of regions’ budget security as a component of financial self-sufficiency in the conditions of public administration decentralization is revealed. The definition content of «region’s budget security “ is defined from the standpoint of balance of local budgets in terms of revenues and expenditures, risk and threat assessment, sufficiency of financial support for the execution of functions and powers entrusted to local governments. The budgetary security of the region is proven to be a condition that ensures the balance of local budgets in terms of revenues and expenditures in current and strategic dimensions, which allows the local governments to fully fulfill their functions and powers, to neutralize the existing risks, threats and dangers. The author’s approach to rating regions of Ukraine is outlined. It is carried out on the basis of such key indicators as balance of the regional budget in % to GRP, budget’s revenues of the region per capita, budget expenditures per capita, ratio of the amount of received transfers to the sum of budget expenditures of the region in the consolidated state budget, the ratio of tax and non-tax revenues to the local budget, the share of tax revenues in the total budget of the region, the share of official transfers in the total local budget revenues, transfers from the state budget in % to GRP. This allows for determining of the level of budgetary security of territorial entities. The main methodological principles for the rating of regions are defined: the selection and evaluation of absolute indicators, the analysis of relative coefficients, the choice of integral indicators and the formation of rating estimates. The results of the analysis of the budgetary security of the regions revealed significant disparities in the formation of local budgets in terms of revenues and official transfers from the state budget and their significant budgetary differentiation. The uneven amount of transfers in total local budget revenues and the substantial dependence of territorial communities on public funding are emphasized.

Improving the mechanism of pit collection for community development in the context of decentralization

2021 ◽  
Author(s):  
О. Boiko
Keyword(s):  
Local Governments ◽  
Income Tax ◽  
Well Being ◽  
Local Communities ◽  
The State ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Revenues ◽  
Fiscal Efficiency ◽  
Local Budget

Problem setting. In the analysis of any budget, important markers are åðó revenue indicators, which 80% consist of tax revenues. After all, they give the government and citizens an understanding of how capable the communityis, what amount of expenditures can be made from income, and whether the community has can develop and improve the well-being of its inhabitants. Personal income tax (hereinafter – PIT) covers about 60% of tax revenues of local budgets of Ukraine, so its important role for socio-economic development of local communities and regionsis clear.Recent research and publications analysis. The issue of studyingthe effectiveness of the mechanism of PIT payment and its influence on the process of generation of local government revenues have been in the center of research of domestic scientists such as O. Bandurka, N. Dieieva, I. Liutyi, N. Redinaet al. At the same time, the issue of the effectiveness of PIT collection and its importance for the development of communities in the current conditions of decentralization requires further thorough research.Highlighting previously unsettled parts of the general problem. The role and place of personal income tax in the structure of tax revenues of local budgets have been studies in the paper, the essence of the mechanism of its collectionhas been substantiated, the provision on the effectiveness of tax control over the completeness of its revenues have been analyzedand the reasons for reforming its payment procedure by tax agents have been justified.The purpose of the paper is to study the role and place of PIT in the structure of tax revenues of local budgets, substantiate the essence of the mechanism of its collection, analyze PIT administration procedure, makeproposals for improving the effectivenessof fiscal role of this tax for the community development.Paper main body. One of the most important taxes in the system of direct taxation in Ukraine is the personal income tax. Its share in the structure of tax revenues of the consolidated budget in recent years was about 20% – 23% (90% of which – revenues to local budgets, 10% – revenues of the state budget).The procedure for imposition of this taxis regulated by Section IV of the Tax Code of Ukraine, deducted from the income of citizens at a rate of 18%, which applies to almost all types of income of citizens.In the structure of tax revenues of local budgets, its share is the largest one and averages up to 60% of all tax revenues. During the period of 2015 – 2020, the fiscal efficiency of PIT in the structure of its revenues to local budgets was growing every year. Nominal PIT revenues to local budgets increased from UAH 54,9 billion in 2015 to UAH 177,8 billion in 2020.The key factors influencing the nominal growth of personal income tax revenues are inflation, as well as the annual increase in the minimum wage, changes in tax rates and other innovations in tax reforms of the recent years.Given the significant fiscal efficiency of PIT and its influence on budget generation of the communities, we cannot ignore the problematic aspects of its collection that have a direct impact on tax revenues in the structure of the newly formed amalgamated territorial communities, since success and well-being of local communities depends primarily on the amount of financial resources they own.Thus, according to the Budget Code of Ukraine, PITis distributed among the budgets in the following amounts: 60% goes to the ATC budget, 15% to the regional budget, and 25% to the state budget.It is worthnoting that the current rules of tax and budget legislation contain quite clear obligations of tax agents to pay PITtransfers to those local budgets within which territory businesses are located.Nevertheless, there are constant challenges for local governments and their ability to influence entrepreneurs to pay PIT at the location of legal entities and their units, and not at the place of registration of legal entities.Does this mean that a significant number of tax agents do not comply with the requirements of tax and budget legislation?The Law of Ukraine on Local Self-Government in Ukraine (Article 28) entitles local self-government bodies to monitor the compliance with obligations to pay to the local budget at enterprises and organizations, regardless of the form of their incorporation.Conclusions of the research and prospects for further studies. Given the above, business entities are obliged to pay PIT in accordance with current legislation at the place of their actual location, regardless of the place of registration, and local governments are empowered to control the completeness of taxes coming to the local budget and must actively exercise the initiative to provide additional revenues to community budgets.This will allow receiving PIT revenues to the budget of the community where the enterprises directly carry out their activities in order to develop communities and increase their solvency for the welfare of citizens.

scholarly journals THE IMPACT OF FISCAL DECENTRALIZATION ON PUBLIC ADMINISTRATION

2017 ◽  
Vol 5 ◽  
pp. 242-246 ◽  
Author(s):  
Jozef Kubás ◽  
Zuzana Ĺ tofková ◽  
Ján Mišík
Keyword(s):  
Public Administration ◽  
Fiscal Decentralization ◽  
Slovak Republic ◽  
The State ◽  
State Budget ◽  
Tax Revenues ◽  
Effective Instrument ◽  
The Government ◽  
The Individual ◽  
The Impact

The allocating revenue to the individual budgets of self-governments in the Slovak Republic is a highly sophisticated process. Redistribution of resources using fiscal decentralization is an effective instrument through which the government attempts to eliminate subsidizing of municipalities and self-governing regions from the state budget and thus achieve higher stability of the economy. The function of municipalities and higher territorial units is secured by so-called special purpose tax revenues, which do not go into the state budget but directly into the budgets of self-governments. This research contribution focuses on the revenue side of budgets of public administration institutions for the period of the last five concluding budget years. The analysis demonstrates the meaning and importance of tax revenues for the mentioned institutions as well as the expenditure side of the state budget. In this contribution, a comparative study identified the changes that occurred in the individual years of the presented range and subsequently, evaluated fiscal decentralization and its influence on the revenue side of budgets of municipalities.

scholarly journals State budget of USSR in 1950s — 80s: dynamics and structure of expenditures

2021 ◽  
pp. 304-326
Author(s):  
S. A. Bakanov
Keyword(s):  
Public Administration ◽  
The State ◽  
Electronic Database ◽  
State Budget ◽  
Historical Dynamics ◽  
Heavy Burden ◽  
Ministry Of Finance ◽  
Per Capita ◽  
The 1950S ◽  
Budget Expenditure

The structure of the state budget expenditure of the USSR in its historical dynamics during the 1950s — 1980s is considered. The sources were statistical collections published by the Ministry of Finance of the USSR in the period under review, on their basis the electronic database “State Budget of the USSR” was created, according to which all the calculations presented in the article were carried out. It is noted that the dynamics of the state budget expenditures of the USSR during the entire period of the 1950s — 80s was positive. It is indicated that there was a constant increase in expenditures, which had an average annual value of about 6.5 %; in total, during the period under study, the expenditure part of the state budget increased by 11.6 times, and in per capita terms only by 7.3 times. It is shown that the structure of expenditures of the state budget of the USSR in the 1950s — 1980s included expenditures on the national economy, social and cultural events, public administration and defense. The author concludes that the construction of a welfare state in the USSR in the 1950s — 1970s, along with the burden of military spending, became a heavy burden on the budget system, limiting the government’s room for maneuver in the context of the budget crisis that broke out in the second half of the 1980s.

scholarly journals ФІНАНСОВЕ ЗАБЕЗПЕЧЕННЯ СОЦІАЛЬНО-ЕКОНОМІЧНОГО РОЗВИТКУ РЕГІОНУ

2019 ◽  
Vol 2 (15) ◽  
pp. 147-159
Author(s):  
V.S. Dmytrovska ◽  
T.V. Solodzhuk ◽  
M.S. Maksymiv
Keyword(s):  
Economic Development ◽  
Local Governments ◽  
Social Indicators ◽  
The State ◽  
Special Fund ◽  
Regional Budget ◽  
Socio Economic Development ◽  
Local Budget ◽  
And Control ◽  
Conceptual Foundations

The research of financing the socio-economic development of the region at the expense of local budgets was conducted. Particularly, the conceptual foundations of socio-economic development budget financing have been further developed in terms of determining the directions of using resources that ensure the effectiveness of socio-economic development, systematic financial instruments of social development of the region, and supplemented in the allocation of grants and programs of the State Fund for Regional Development.On the basis of the analysis of budget expenditures, the analysis of financial support of socio-economic development of Ukraine and Ivano-Frankivsk region was carried out. In particular, the expenditures of the general and special fund of the Ivano-Frankivsk regional budget for financing the main directions of socio-economic development of the region were analyzed, the main trends were identified and problems were identified.Despite of important tasks that local governments face up when formulating and using development budgets, they are now mostly used to simplify individual budgetary procedures. In addition, the miserable sumes of local budget development revenues are directed, for the most part, to capital expenditures, to the repairs of social facilities, but not to investments in socio-economic development programs. Therefore, the development budget, as a mechanism for making budget investments, needs to be reformed and improved, due to the limitations on filling this fund with financial resources, the inefficient mechanism for its use and control over the level of efficiency.The state of socio-economic development of Ukraine can be concluded on the basis of statistical indicators characterizing trends in the social and economic spheres. Based on the data of the State Statistics Service, the importance of these indicators in 2015 – 2018 was highlighted. This helped to indicate a number of positive trends within the economic component of socio-economic development and the negative dynamics of some social indicators. It allowed justifying recommendations for improving the effectiveness of financing the socio-economic development of the region.

Spatial and Institutional Analysis of the Voivodships Expenditure on Culture in the Years 2003 – 2015

e-Finanse ◽  
2019 ◽  
Vol 15 (3) ◽  
pp. 67-75
Author(s):  
Adam Mateusz Suchecki
Keyword(s):  
Local Government ◽  
Public Administration ◽  
Local Governments ◽  
Local Level ◽  
Institutional Analysis ◽  
The State ◽  
Cultural Institutions ◽  
Location Quotient ◽  
Local Authorities ◽  
National Heritage

AbstractFollowing the completion of the process of decentralisation of public administration in Poland in 2003, a number of tasks implemented previously by the state authorities were transferred to the local level. One of the most significant changes to the financing and management methods of the local authorities was the transfer of tasks related to culture and national heritage to the set of tasks implemented by local governments. As a result of the decentralisation process, the local government units in Poland were given significant autonomy in determining the purposes of their budgetary expenditures on culture. At the same time, they were obliged to cover these expenses from their own revenues.This paper focuses on the analysis of expenditures on culture covered by the voivodship budgets, taking into consideration the structure of cultural institutions by their types, between 2003-2015. The location quotient (LQ) was applied to two selected years (2006 and 2015) to illustrate the diversity of expenditures on culture in individual voivodships.

scholarly journals ANALISANDO O COMPORTAMENTO DOS GASTOS PUBLICOS NOS MUNICÍPIOS CEARENSES

2014 ◽  
Vol 18 (1) ◽  
pp. 85 ◽  
Author(s):  
José Geraldo Araújo Correia ◽  
Guilherme Irffi Diniz ◽  
Rodolfo Ferreira Ribeiro da Costa
Keyword(s):  
Panel Data ◽  
Public Administration ◽  
Local Governments ◽  
Income Elasticity ◽  
Random Effect ◽  
Public Spending ◽  
The State ◽  
The Public

O objetivo deste trabalho é testar a hipótese de flypaper na administração pública municipal do estado do Ceará.Para tal, foi construído um painel de dados com informações sobre os gastos, a arrecadação, a população e as transferências constitucionais para os 184 municípios cearenses entre 1999 e 2009. Tais informações foram extraídas juntoà Secretaria do Tesouro Nacional e ao Instituto Brasileiro de Geografia e Estatística. A metodologia utilizada remete-se aomodelo de dados em painel com efeito aleatório. Os resultados destacam que a elasticidade gasto-renda supera aelasticidade gasto-transferência e, portanto, as administrações municipais estão isentas da prática descrita pelo efeitoflypaper.Palavras-chave: Flypaper; gasto; transferência; dados em painelANALYZING THE BEHAVIOR OF THE PUBLIC SPENDING IN CEARÁ’S CITIESAbstract: The aim of this study was to test the hypothesis flypaper in municipal public administration in the state of Ceará.To this end, was built a panel with information on expenditures, revenues, population and constitutional transfers to the 184municipalities of Ceará between 1999 and 2009. Such information was extracted together with the National Treasury and theBrazilian Institute of Geography and Statistics. The methodology used is referred to the panel data with random effect model.The results highlight that the elasticity spending exceeds income-elasticity worn-transfer and, therefore, local governments are exempt from the practice described by flypaper effect.Keywords: Flypaper, expenditure, transfer, panel data.

scholarly journals Role of Public Entities in Suitable Provision of Public Services: Case Study from Slovakia

2021 ◽  
Vol 11 (4) ◽  
pp. 143
Author(s):  
Viera Papcunová ◽  
Roman Vavrek ◽  
Marek Dvořák
Keyword(s):  
Public Administration ◽  
Local Governments ◽  
Public Services ◽  
Slovak Republic ◽  
The State ◽  
Main Role ◽  
The Public ◽  
State Administration

Local governments in the Slovak Republic are important in public administration and form an important part of the public sector, as they provide various public services. Until 1990, all public services were provided only by the state. The reform of public administration began in 1990 with the decentralization of competencies. Several competencies were transferred to local governments from the state, and thus municipalities began to provide public services that the state previously provided. Registry offices were the first to be acquired by local governments from the state. This study aimed to characterize the transfer of competencies and their financing from state administration to local government using the example of registry offices in the Slovak Republic. In the paper, we evaluated the financing of this competency from 2007 to 2018 at the level of individual regions of the Slovak Republic. The results of the analysis and testing of hypotheses indicated that a higher number of inhabitants in individual regions did not affect the number of actions at these offices, despite the fact that the main role of the registry office is to keep registry books, in which events, such as births, weddings, and deaths, are registered.

scholarly journals Modelling Elasticity of Non‑Oil Tax Revenues to Oil Price Changes: is There U‑Shaped Association? Evidence from Azerbaijan

2019 ◽  
Vol 67 (3) ◽  
pp. 799-810
Author(s):  
Khatai Aliyev ◽  
Altay Ismayilov ◽  
Ilkin Gasimov
Keyword(s):  
Income Tax ◽  
Scientific Evidence ◽  
Great Influence ◽  
Policy Decision ◽  
Threshold Level ◽  
The State ◽  
Oil Price ◽  
State Budget ◽  
Price Changes ◽  
Tax Revenues

Oil price changes has a great influence on the behaviour of firms in oil exporting countries which displays itself in amount of non‑oil tax receipts of the state budget. Employing FMOLS, DOLS, and CCR cointegration methods for 2001Q1–2015Q4, the study aims to analyse how oil price changes affects non‑oil tax revenues in Azerbaijan. Empirical results altogether provide strong scientific evidence that there is U‑shaped causality from oil price changes to total non‑oil tax revenues , corporate income tax receipts and labour income tax payments , and inverse U‑shaped to non‑oil VAT revenues of the state budget. Results show that firms face with the trade‑off between “produce‑and‑sell” and “import‑and‑sell” as oil price rises. In case of higher price than the threshold level, companies prefer the latter choice. Research findings are highly useful for the public policy decision‑makers in resource rich economies.

scholarly journals Investment subsidies as a source of revenues to local budgets

2021 ◽  
pp. 31-34
Author(s):  
Volodymyr HORYN ◽  
Nataliia KARPYSHYN
Keyword(s):  
Economic Development ◽  
Local Governments ◽  
The State ◽  
Infrastructure Development ◽  
State Budget ◽  
Investment Projects ◽  
Socio Economic Development ◽  
Water Mains

Introduction. Given the limited own resources of local self-government, it is important to ensure the effective functioning of the mechanism for providing investment subventions from the state budget. Such investment subventions include subventions for the formation of infrastructure in the united territorial communities and subventions for the implementation of measures of socio-economic development of separate territories. The purpose of the paper is the analysis of the mechanism of providing and using investment subventions to local budgets in order to identify disadvantages and eliminate them. Results. Providing an “infrastructure” subvention to local budgets has strengthened the capacity of united territorial communities and to some extent improved the quality of services provided to the population. During 2016–2019, UAH 6.5 billion was allocated from the State Budget of Ukraine to local budgets for infrastructure development and 9475 projects were implemented. With the help of these subventions, schools, kindergartens, outpatient clinics, cultural and sports institutions, water mains and roads were built and repaired, and specialized transport was purchased. However, in recent years, the role of this subvention has decreased significantly due to the fact that the number of UTCs that received an infrastructure subvention during 2016–2021 has increased significantly, and its volume has hardly changed. The amount of subventions from the state budget to local budgets for the implementation of measures for socio-economic development of certain territories has also decreased, which negatively affects the capacity of local governments in the field of investment projects. Conclusion. The volume of investment subventions remains insufficient, and their distribution is partly in a “manual mode”, which creates a favorable environment for political corruption and lobbying.

scholarly journals Investment support for effective development of agro-industrial enterprises of Lviv region

2020 ◽  
Vol 22 (96) ◽  
pp. 28-34
Author(s):  
R. Myniv ◽  
H. Mokrytska
Keyword(s):  
Agricultural Sector ◽  
The State ◽  
Positive Trend ◽  
Main Task ◽  
Industrial Complex ◽  
State Budget ◽  
Investment Activity ◽  
Agricultural Enterprises ◽  
Industrial Enterprises ◽  
Regional Budget

Investing in agro-industrial enterprises ensures the competitiveness of agro-industrial formations through the use of innovations to improve their positions in both domestic and foreign markets; achieving economic and food security; improving the social infrastructure of the village translator. Investment activity is a determining factor in the effectiveness of the formation and use of investment potential of agricultural enterprises. The analysis of statistical data on the volume of investments in agricultural enterprises of Lviv region at the expense of district budgets in 2019–2020 indicates an increase in investment resources invested in Horodok, Zolochiv and Stryj districts. However, the total approved amount of investments in the region in 2020 (1913.0 thousand UAH) decreased by 2.3 times compared to the funded volume in 2019 (4394.9 thousand UAH), which indicates the unstable rate of investment activity of investments in agro-industrial enterprises in terms of districts of Lviv region. During 2016–2020, there is a positive trend to increase the share of investments in the agro-industrial complex of Lviv region from the budgets of all levels, which, given the leading role of the national agricultural sector, is quite natural. This figure will reach its maximum value in 2020, which is 15.3 more than in 2016, at the expense of the state budget and 1.6 times more – at the expense of the regional budget. During 2019 (52 enterprises) 2.5 times compared to 2016 (22 enterprises) increased the number of agricultural enterprises in Lviv region, which used the program of interest compensation on loans in the amount of 68.4 million UAH. at the expense of the regional budget, which is 3.1 times more than in 2016 (UAH 22.0 million). The program of compensation of interest on loans from the state budget in 2019 was used by 41 enterprises of the agro-industrial complex of Lviv region, which is 3.2 shirts more than in 2016. However, funding decreased from UAH 334.1 million. in 2016 to UAH 173.8 million. in 2019. In 2019, UAH 11.5 million was financed for the implementation of business plans at the expense of soft loans of Lviv region. at the expense of the state budget and UAH 6.8 million. at the expense of the local budget. This allowed 34 businesses to purchase 14 units of agricultural machinery, plant 18.7 hectares of orchards and berries, purchase 24 heads of breeding animals, 21 formations to modernize technological processes and create an additional 30 jobs. Investments are an important guarantee of effective economic development of any enterprise, region, country. At the present stage, the main task is to take all possible measures to create an attractive investment climate and intensify investment processes at both the regional and national levels.

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