INTERNATIONAL EXPERIENCE IN PROVIDING FINANCIAL SUPPORT FOR LOCAL INVESTMENT PROJECTS

The article considers the relationship between modern processes of budget decentralization and macro-financial policy of Ukraine. The focus on deepening decentralization processes in Ukraine remains unchanged. This emphasizes the use of the State Strategy for Regional Development for 2021-2027. The theoretical foundations of budget decentralization were introduced in the works of C. Tibet, W. Oates, E. Bracco, W. Tanzi, A. Aristovnik and other Western researchers. C. Oates defined the decentralization of fiscal powers as a benefit that could lead to a reduction in the size of the central government. This means reducing the tax burden by increasing competition from tax jurisdictions. For quantification at the level of an individual economy, it is possible to use the index of fiscal decentralization. This index consists of two sub-indices: the self-sufficiency index and the index of importance of subnational budgets. The OECD Fiscal Decentralization Database can be used as a source of information on fiscal decentralization. A retrospective analysis of economists has shown an increase in the index of fiscal decentralization and an improvement in the state of subnational entities in a favorable macroeconomic situation. On the contrary, the crisis worsens the conditions of subnational entities and is accompanied by a decrease in this index. With the beginning of the pandemic, there was a crisis situation regarding the macroeconomic support of further decentralization processes. Long-term social problems are deepening: demographic negatives, increasing external outflow of labor resources, shrinking the country's economy, progressive deindustrialization, high resource intensity of production, in particular, low energy efficiency, growing debt burden. The most destabilizing role is played by military events in the east of the country. High regional disproportion logically leads to a violation of the single economic space of Ukraine. The size of the budget deficit and public debt is increasing. The crisis has a significant impact on all macroeconomic processes, in particular, on the macro-financial stimulation of budget decentralization processes. The urgent task is to establish effective coordination of fiscal and monetary policy, as well as increase the capacity to attract loan financing. Extreme conditions force us to temporarily give up strategic intentions as such, which are not urgent. Public-private partnership can get another chance to become an effective mechanism of social interaction. Increasing competition between budgetary institutions and private institutions in these areas has the potential to increase the quantity and quality of public services.

ORGANIZATIONAL AND LEGAL DISTRIBUTION OF FINANCIAL RESOURCES THE UNITED TERRITORIAL COMMUNITY IN THE CONTEXT OF SECURITY CONDITIONS

In modern transformational conditions, the formation of Ukrainian statehood with the choice of the European course of urgency is gaining the issue of budget decentralization, where the key figures are the efficiency of local governments. In this regard, there is a problem of optimal redistribution of financial resources and powers of local authorities, which today are the main and most relevant for improving the efficiency of the budget system as a whole, because the effectiveness of socio-economic policy and its economic security directly depend on rational built and balanced system of economic relations, a clear redistribution of financial resources and flexibility of ways to use them. The article conducts a comprehensive study the mechanism of distribution financial resources the united territorial community in the context of security. The system of management balanced development the united territorial community on the basis of application of safety conditions is substantiated. It is proposed to consider the distribution of budget funds in the territorial community depending on the area, the number of rural residents and the actual income of village (settlement) for the relevant period. Two projects of algorithm calculation the budget with separation of main stages are formed.

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

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.

Budget Mechanism: Methodological Approaches to and the Practice of Budget Decentralization

Theoretical approaches to the formation of the budget mechanism as a form of practical implementation of budget policy are made more profound; budget decentralization as a budget regulating and stimulating mechanism in the current situation in Ukraine is studiedl and perspective directions of introducing various budget mechanism are outlined. The mechanistic concept was applied to budgetary relations, thus becoming the basis for highlighting the main features of the budgetary mechanism, determining the main provisions of forming the budgetary mechanism. Emphasis is placed on the relationship between budget policy, which is manifested through the dialectical unity of budget strategy and tactics, and the budget mechanism. The budgetary mechanism is defined as a system of measures aimed at influencing the mobilization of optimal funds, their efficient distribution and rational use in order to ensure macroeconomic balance, sustainable development and preservation of state sovereignty, as defined by state policy. It is suggested to integrate the constituent elements of the budgetary mechanism into the appropriate subsystems within its framework, through which the main functions of the budgetary mechanism aimed at achieving the goal are manifested. In order to study a subsystem of the budgetary mechanism, namely the regulatory mechanism, the peculiarities of the manifestation of budgetary decentralization in Ukraine are analyzed. It is proved that the introduction of the subsidiarity principle while constructing the decentralized model of inter-budgetary relations in the unitary Ukraine is currently the best option for it to find a balance between the advantages of budgetary federalism and the unitary form of budgetary relations. Systemic problems of budget decentralization have been identified, namely: decentralization occurs by bringing in new persons to act on the national level; it does not affect the mechanisms of autonomy in decision-making on taxation and the formation of additional sources of local budget revenues; statutory tax benefits for the local tax mobilization significantly reduce the financial resources of local budgets; local budgets remain significantly dependant from the state; in the regulation of local budget revenues, preference is given to transfer instruments, and the share of budget-generating taxes is reduced. Given the theoretical construct of the public sector theory, which gives grounds to the formation of local budget revenues, and the results of the research on budget regulation in Ukraine, budget decentralization processes are only proven to be pretentious, and the need to improve the division of budget authority is identified, while emphasis is made on financial self-sufficiency.

STATE POLICY ON DECENTRALIZATION PUBLIC AUTHORITIES OF UKRAINE

The article reveals the essence of building effective public power at the national and regional levels in Ukraine. It is determined that an important element of the political system of society is local self-government. Decentralization can rightly be considered one of the most "humane" reforms carried out in Ukraine and which provides qualitative improvement of the living environment of people, the ability to realize their aspirations for quality education, medicine, culture, social protection. During the reform of local self-government in Ukraine, a new system of administrative-territorial organization was formed, which allowed to form 1470 united territorial communities (UTC) instead of 11250. At the same time, the most significant result of budget decentralization is an increase in local taxes % in 2012 to 30% in 2018, mainly due to the transfer of certain taxes and fees to local budgets. A positive assessment of decentralization of power in Ukraine is the growth of trust in local authorities more than doubled (from 13.8% to 27.9%) against the background of significant distrust of the President - 74.0%, the Verkhovna Rada - 83.5%, the Government of Ukraine - 80.3%.

CONDUCTING BUDGET DECENTRALIZATION OF TERRITORIAL UNITED COMMUNITIES AS A WAY OF FINANCIAL SUPPORT OF SUSTAINABLE DEVELOPMENT IN UKRAINE

The article considers the prospects of achieving sustainable development goals, which are a necessary tool for the development of European national economies and increase competitiveness in the world market, they are followed by all members of the European Union and its future members, including Ukraine. It is emphasized that the funding process implemented through the deepening of budget decentralization in the country provides a foundation for the implementation of sustainable development(SD) programs and goals. The economic processes in the country during the decentralization reforms at the stage of voluntary unification of territorial communities (OTG), strengthening their budgetary independence have been studied. Observations of the financial distribution of basic and reverse subsidies to local governments budgets during 2019 were conducted. To enable the measurement of economic sustainability in Ukraine, it was decided to synthesize the economic and social components of sustainable development. Obtaining statistical characteristics of indicators for selected components was provided by using indices. The dynamics of sustainable development goals implementation in the period from 2015 to 2020 is analyzed. The study is aimed at finding the interdependence of deepening budget decentralization, ensuring the financial system of self-government in cities with the implementation of economic and social components of sustainable development. In order to be able to characterize the level of sustainable development, its components in Ukraine will use the main global indices of the Slovak Republic: the Global Competitiveness Index and the Human Development Index. In order to explore the uniformity of the distribution of financial income among the united communities of Ukraine, we propose to use the Gini index. The Gini index measures the degree to which the distribution of income or consumption expenditure of individuals or households in an economy differs from absolute equality in distribution. In order to find a link between the level of economic sustainability and the deepening of budget decentralization in Ukraine, we propose to conduct a correlation analysis between the SR indices and the Ginny index. The analysis was performed on two types of correlation: Pearson in the case of linearity, similarity of indicators; and Spearman's correlation, on the other hand, in the case of nonlinearity, converting index indices into ranks, providing greater reliability. After the analysis, it will be possible to identify the presence of a connection between these indicators or to make sure that they are absent.

Excise Tax on Fuel as a Source of Local Self-Government Budgets in the Context of Budget Decentralization

The article is aimed at disclosing the role and significance of the excise tax on fuel in filling local self-government budgets in the context of the implementation of budget decentralization, also disclosing the main aspects of excise tax reform, changes in its distribution between budgets and finding ways to ensure the stimulating impact of excise taxation on the socio-economic development of territorial communities (hromadas). The article describes the steps taken to strengthen the financial capacity of local self-government (changes in the sources of filling the hromadas’ budgets) by introducing budget decentralization, steps to implement decentralization in the sphere of road infrastructure of Ukraine (distribution of functions and powers in the road sector at the subregional level of management and introduction of an updated mechanism for financing the road industry). The significance and role of excise tax on fuel in the formation of budgets of territorial communities in the context of implementation of budget decentralization and decentralization in the road sector are analyzed and disclosed. The main aspects of excise tax reform, changes in its distribution between budgets during 2014-2020 in the context of the implementation of decentralization are presented. A number of substantiated arguments are given regarding the need to preserve the crediting of the excise tax on fuel to the local self-government budgets. The issue of the need to improve the distribution of subventions to roads in order to achieve fairness and eliminate the asymmetry of the financial capacity of territorial communities to develop road infrastructure and ensure the stimulating impact of excise taxation on the socio-economic development of all territorial communities is actualized.

The role of Ukrainian local budget expenditures on health in conditions of decentralization

Relevance of the research topic. The implementation of medical reform in Ukraine, which provides radical structural changes in the health care system, the transformation of financing mechanisms for services, and at the same time the implementation of budgetary reform, an integral part of which is budget decentralization, makes the issue of assessing the role of local budget spending on health care. Formulation of the problem. In conditions of limited budgetary funds, growing debt and budgetary decentralization, successful implementation of health care reform is impossible without increasing the role of local budgets in financing the industry of development priority areas. Analysis of recent research and publications. The works of I. Chygynova, V. Makogon, M. Pasichnogo, Ju. Markuts, I. Kogut, Y. Pasichnik, V. Tropina [1-6] and others are devoted to the study of issues related to the problems of the article. The results of their own research of some of the indicated problems are presented in [6-8]. Segregation of unexplored parts of a common problem. In the context of deepening budget decentralization, strengthening the financial base of local budgets, expanding the functional powers of local governments, it is necessary to further search for ways to increase the role of local budgets in health care financing. The purpose of the article is to assess the role of expenditures of local budgets of Ukraine on the health care sector in the context of deepening budget decentralization and to develop proposals for improving its financing. Duringresearch, general scientific and special methods were used: analysis and synthesis, the method of generalization, statistical, etc. The article analyzes and evaluates the total expenditures of local budgets for health care, as well as for the regional program "Health of the population of the Dnipropetrovsk region for 2020-2024". The attention is focused on increasing the role of local budget expenditures in the process of changing the health financing model. The basis for expanding the capacity of local governments to finance health care was the deepening of budgetary decentralization, changes in the distribution of taxes to local budgets, etc. Conclusions. In conditions of acute limited financial resources, success in the formation and effective use of funds from local budgets of Ukraine for the development of an appropriate health care system is associated, first of all, with the consistent implementation of the financial and budgetary policy of the state, the coherence of medical and budgetary reforms, priorities, increasing the efficiency of the use of budgetary funds in format of target program budgeting. The results of this study can be applied in the process of forming and implementing social and budgetary policies for the development of the health care system in the country.