UDC 336.22(4); JEL E60, O18
Voznyak, H., & Zherbylo, I. (2018). Osoblyvosti proyavu finansovoyi detsentralizatsiyi na rehional'nomu rivni: komparatyvnyy analiz vitchyznyanoyi ta svitovoyi praktyky [Features of manifestation of financial decentralization at the regional level: comparative analysis of domestic and world practice]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 129 (1) (pp. 126-132). Retrieved from http://ird.gov.ua/sep/doi/sep2018.01.132. [in Ukrainian].
Sources: 10

Authors



Voznyak Halyna Vasylivna

Doctor of Economics, Senior Researcher

Leading Researcher of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: gvoznyak@gmail.com

Webpages:

Zherebylo Iryna Vladyslavivna

Ph.D. of Philosophy, Associate Professor

Director of the Lviv Institute of the University of Banking

Contacts: zherebіlo@gmail.com, referent@libs.ubs.edu.ua

Webpages:

Resume

Financial decentralization is an important determinant of regions’ social and economic development, contributing on one hand to reduction of state role in their financial maintenance and on the other hand – to creation of opportunities for strengthening of local budgets’ autonomy. The paper aims to conduct comparative analysis of financial decentralization manifestations in Ukraine and in the world. The features of financial decentralization manifestation in the context of its influence on economic growth of regions and territorial communities are outlined on the basis of analysis of best practices in economically developed countries. The sources of income forming are found. The facts that the revenues of subregional level budgets are (predominantly) formed by local taxes, the largest share of which is taken by property taxes and that their share in budget revenues of federal countries is much lower than in unitary ones are proved. Various levels of decentralization are peculiar to different countries, however «richer» countries are more decentralized. The fact that there is no optimal level of financial decentralization because each country goes its own development way is proved. The reasons of financial decentralization are outlined, including the following: low efficiency of educational and healthcare spheres, social protection, public management; excessive costs for maintenance of management aparatus and network; poor paces of advanced technilogies’ introduction, small insufficient communities, desire to improve the quality and quantity of public services, although at the beginning of 2000s the development of democratic political system was in priority for the countries of the Eastern Europe. Fist steps of financial decentralization in Ukraine and the flaws of the launched reform are shown. Priorities of budget policy in Ukraine in conditions of interbudgetary relations’ reform are defined. The mirror transfer of experience in implementation of financial decentralization reform in European countries and globally to Ukrainian ground is emphasized to be inappropriate. The later requires detailed analysis of peculiarities of its manifestation within each country.

Keywords:

financial decentralization, local taxes, local self-governance bodies, community, region, European Union members

References


1. Salo, T. (2013). Detsentralizatsiya finansovoyi systemy: stan ta otsinka rivnya v Ukrayini [Decentralization of the financial system: state and assessment of the level in Ukraine]. In Efektyvnist’ derzhavnoho upravlinnya [Effectiveness of public administration]: Vol. 35 (pp. 324-330). [in Ukrainian].
2. Yehorycheva, S., & Lakhyzha, M. (2016). Zabezpechennya finansovoyi samodostatnosti terytorialʹnykh hromad: dosvid yevropeysʹkoho soyuzu dlya Ukrayiny [Ensuring financial self-sufficiency of territorial communities: experience of the European Union for Ukraine]. Visnyk Ternopil’s’koho natsional’noho ekonomichnoho universytetu – Bulletin of Ternopil National Economic University, 1, 64-77. Retrieved from http://dspace.puet.edu.ua/bitstream/123456789/4255/1/Vtneu_2016_1_8.pdf [in Ukrainian].
3. Roman V. F. (2018). Modeli detsentralizatsiyi vlady krayin Yevropeysʹkoho Soyuzu [Models of decentralization of power of the European Union countries]. In Teoriya ta praktyka derzhavnoho upravlinnya [Theory and Practice of Public Administration]: Vol. 2 (pp. 206-213). Retrieved from http://lvivacademy.com/visnik12/fail/Roman.pdf [in Ukrainian].
4. Demydenko, L., & Nakonechna, Yu. (2015). Fiskalʹna detsentralizatsiya: nimetsʹkyy dosvid ta ukrayinsʹki realiyi [Fiscal decentralization: German experience and Ukrainian realities]. In Visnyk Kyyivs’koho natsional’noho universytetu im. Tarasa Shevchenka: Ekonomika [Bulletin of Taras Shevchenko National University of Kyiv: Economics]: Vol. 2(167) (pp. 50). [in Ukrainian].
5. Pysmennyy, V. V., & Palats Kh. P. (2014). Suchasni vyklyky systemy finanso¬voho vyrivnyuvannya terytoriy: dosvid Ukrayiny i skandynavsʹkykh krayin [Modern challenges of the system of financial equalization of territories: the experience of Ukraine and Scandinavian countries]. In Visnyk Zaporiz’koho natsional’noho universytetu: Ekonomichni nauky [Visnyk of Zaporizhzhya National University: Economics]: Vol. 3 (pp. 112-122). [in Ukrainian].
6. Trufen, A. O. (2016). Mistsevi finansy v suchasnykh umovakh provedennya detsentralizatsiyi v Ukrayini [Local finances in modern conditions of decentralization in Ukraine]. Zaporizhzhya: KPU. [in Ukrainian].
7. Murzakov, A. P. (2002). Formyrovanye y raskhodovanye sredstv byudzhetov horodov rehyonalʹnoho znachenyya [Formation and expenditure of funds of budgets of cities of regional importance]. (Ph.D. in Econ. Thesis, Saratov, Russia). [in Russian].
8. Voznyak H. V. (2016). Byudzhetna detsentralizatsiya: yevropeysʹkyy dosvit ta perspektyvy dlya Ukrayiny [Budget decentralization: European education and prospects for Ukraine]. In Sotsial’no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 119(3) (pp. 45-50). [in Ukrainian].
9. Ruśkowski, E., & Salachna, J. (2007, Oct.). Finanse lokalne po akcesji [Sub-national public finance in the European Union]. 2 wyd. Warszawa: Wolters Kluwer Polska Sp. Economic Outlook. Retrieved from www.dexia.com/docs/2008) 2008_news/20080131_public_ finance_europe_UK.pdf [in Polish].
10. Committee of Statistics of the European Union (2018). Retrieved from http://ec.europa.eu/eurostat/data/database