UDC 352.075.1:[338.294.47:336](477); JEL F02, O18, R10
Siryk, Z. (2020). Finansova detsentralizatsiya yak peredumova naroshchennya potentsialu mistsevoho samovryaduvannya v Ukrayini [Financial decentralization as a precondition of increasing the local governance capacity in Ukraine]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 141 (1) (pp. 10-20). DOI: https://doi.org/10.36818/2071-4653-2020-1-2. [in Ukrainian].
Sources: 26

Authors



Siryk Zenoviy Orestovych

Ph.D. of Technical Sciences, Associate Professor

Associate Professor of the Department of fundamental disciplines of the Lviv Branch of the Dnipro National University of Railway Transport

Contacts: zsiryk62@gmail.com

Webpages:

Resume

Modern period of Ukrainian development is characterized by extended process of local governance and administrative-financial decentralization reforms, as well as a set of sectoral reforms that started in 2014. The process, which can generally be characterized as the decentralization process, has become the driving force directed at improving the level of territories’ socio-economic development and strengthening the local governance capacity in Ukraine. It is grounded on growing financial autonomy of local authorities, expansion of the list and improving quality of public services granted to residents, and meeting the needs of territorial communities in all activity domains. The paper aims to examine the process of financial decentralization as a precondition of increasing the capacity of local governance in Ukraine. The paper determines that local finances are the process of making financial and investment decisions according to the planned tasks and sources of maintenance. It reveals that the sources of financial provision of territorial communities stipulate the forming of local budgets’ revenues in time based on real processes. The approach contributes to avoiding the excessive expenses and more distinct but rather short-term predicting of budgets composition, as well as optimal defining of funding priorities for corresponding activities. The structure of funding sources in Ukraine is analyzed. The weight of local budgets’ revenues in the structure of Ukraine’s consolidated budget in 2014-2018 is determined. The fact that financial decentralization as one of the key reforms is directed at strengthening of financial-economic capacity of territorial units based on the principles of autonomy, self-sufficiency, and efficiency is emphasized.

Keywords:

local governance, reform, territorial communities, financial-investment provision, financial resources

References


1. Bondaruk, T. H. (2009). Mistseve samovryaduvannya ta yoho finansove zabezpechennya v Ukrayini [Local self-government and its financial support in Ukraine]. [in Ukrainian].
2. Boryslavska, O., Zaverukha, I., & Zakharchenko, E., et al. (2012). Detsentralizatsiya publichnoyi vlady: dosvid yevropeys’kykh krayin ta perspektyvy Ukrayiny [Decentralization of public power: the experience of European countries and prospects of Ukraine]. Kyiv: Sofia. [in Ukrainian].
3. Byudzhetna detsentralizatsiya yak faktor zabezpechennya finansovoyi avtonomiyi rehioniv i formuvannya samodostatnikh hromad [Budget decentralization as a factor in ensuring the financial autonomy of regions and the formation of self-sufficient communities]. Retrieved from https://knute.edu.ua/file/NjY4NQ==/1184477cfe14b1a0b3d7485c43c363d0. pdf [in Ukrainian].
4. Vasylenko, D. (2015). Byudzhetna detsentralizatsiya yak sposib realizatsiyi byudzhetnoyi polityky [Budget decentralization as a way to implement budget policy]. Scientific blog of the National University «Ostroh Academy»: Website. Retrieved from https://naub.oa.edu.ua/2015 [in Ukrainian].
5. Voznyak, H. (2017). Osoblyvosti mizhbyudzhetnykh vidnosyn v konteksti dosyahnennya finansovoyi spromozhnosti terytorial’nykh hromad [Features of intergovernmental relations in the context of achieving the financial capacity of territorial communities]. Svit finansiv – The world of finance, 2(51), 17-28. [in Ukrainian].
6. Hanzytska, T. S., & Kozin, V. V. (2017). Mistsevi byudzhety v konteksti finansovoyi detsentralizatsiyi [Local budgets in the context of financial decentralization]. In Naukovyy visnyk Khersons’koho derzhavnoho universytetu. Seriya: Yurydychni nauky [Scientific Bulletin of Kherson State University. Series: Legal Sciences]: Vol. 1(2) (pp. 22-26). [in Ukrainian].
7. Zhalilo, Ya. A., Shevchenko, O.,V., & Romanova, V. V., et al. (2019). Detsentralizatsiya vlady: poryadok dennyy na seredn’ostrokovu perspektyvu [Decentralization of power: an agenda for the medium term]: Analytical report. Kyiv: NISS. [in Ukrainian].
8. Detsentralizatsiya ta efektyvne mistseve samovryaduvannya [Decentralization and effective local self-government]: Manual (2007). Kyiv. [in Ukrainian].
9. Detsentralizatsiya upravlinnya: perevahy i ryzyky v umovakh Ukrayiny [Decentralization of management: advantages and risks in the conditions of Ukraine] (2019). Nova Geografia: Website. Retrieved from http://www.novageografia.com/vogels-139-1.html [in Ukrainian].
10. Yevropeys’ka khartiya pro mistseve samovryaduvannya [European Charter of Local Self-Government] (1985, Oct 15). Legislation of Ukraine: Website. Retrieved from http://zakon4.rada.gov.ua/laws/show/994_036 [in Ukrainian].
11. Zvitnist’ Derzhavnoyi kaznacheys'koyi sluzhby Ukrayiny stanom na 01.01.2019 r. [Reporting of the State Treasury Service of Ukraine as of January 1, 2019.] (2019). State Treasury Service of Ukraine: Website. Retrieved from https://www.treasury.gov.ua/ua/filestorage [in Ukrainian].
12. Kazyuk, Ya., Ventsel, V., & Herasymchuk, I. (2019). Dzherela dokhodiv mistsevykh byudzhetiv [Sources of local budget revenues]. Kyiv. [in Ukrainian].
13. Kraynyk, O. P. (2009). Detsentralizatsiya upravlinnya finansovymy resursamy rehionu [Decentralization of financial resources management in the region]. In Efektyvnist’ derzhavnoho upravlinnya [Efficiency of public administration]: Vol. 21 (pp. 373-378). [in Ukrainian].
14. Melnychenko, V. I. (2004). Detsentralizatsiya ta dekontsentratsiya publichnoyi vlady na postradyans’komu prostori: determinovanist’, znachennya, mezhi [Decentralization and deconcentration of public power in the post-Soviet space: determinism, significance, boundaries]. Visnyk Khmel’nyts’koho instytutu rehional’noho upravlinnya ta prava – Bulletin of the Khmelnytsky Institute of Regional Management and Law, 1/2, 282-288. [in Ukrainian].
15. Moldovan, O. O. (2010). Nova arkhitektura byudzhetnoyi systemy Ukrayiny: ryzyky ta mozhlyvosti dlya ekonomichnoho zrostannya [New architecture of the budget system of Ukraine: risks and opportunities for economic growth]. Kyiv: NISS. [in Ukrainian].
16. Monitorynh protsesu detsentralizatsiyi vlady ta reformuvannya mistsevoho samovryaduvannya stanom na 10.01.2019 r. [Monitoring of the process of decentralization of power and reform of local self-government as of January 10, 2019] (2019). Decentralization: Website. Retrieved from https://decentralization.gov.ua/mainmonitoring [in Ukrainian].
17. Podatkovyy kodeks Ukrayiny [Tax Code of Ukraine] (2011). Law of Ukraine, adopted on 2011, May 19, 3393-VI. Legislation of Ukraine: Website. Retrieved from https://zakon.rada.gov.ua/laws/show/2755-17 [in Ukrainian].
18. Pro vnesennya zmin do Byudzhetnoho kodeksu Ukrayiny ta deyakykh zakonodavchykh aktiv Ukrayiny shchodo podatkovoyi reformy [On amendments to the Budget Code of Ukraine and some legislative acts of Ukraine on tax reform] (2014). Law of Ukraine, adopted on 2014, Dec 28. Legislation of Ukraine: Website. Retrieved from http://zakon2.rada.gov.ua/laws/show/914-19 [in Ukrainian].
19. Prohrama dlya Ukrayiny z rozshyrennya prav i mozhlyvostey na mistsevomu rivni, pidzvitnosti ta rozvytku [Program for Ukraine on empowerment at the local level, accountability and development] (2019). Decentralization: Website. Retrieved from https://storage.decentralization.gov.ua/uploads/library/file/363/20190110_ULEAD_UKR.pdf [in Ukrainian].
20. Pro zatverdzhennya Metodyky formuvannya spromozhnykh terytorial’nykh hromad [About the statement of the Methodology of formation of capable territorial communities] (2015). Resolution of the Cabinet of Ministers of Ukraine, adopted on 2015, Apr 8, 214. Legislation of Ukraine: Website. Retrieved from https://zakon.rada.gov.ua/laws/show/214-2015-%D0%BF [in Ukrainian].
21. Shults, S. L. (Ed.) (2018). Rozvytok sotsial’noyi sfery terytorial’nykh hromad v umovakh administratyvno-finansovoyi detsentralizatsiyi [Development of the social sphere of territorial communities in the conditions of administrative and financial decentralization]. Lviv: Dolishniy Institute of Regional Research of NAS of Ukraine. [in Ukrainian].
22. Subsydiarnist’ [Subsidiarity] (2019). Wikipedia: site. Retrieved from https://uk.wikipedia.org/wiki/%D0%A1% [in Ukrainian].
23. Sukharska, L. V. (2019). Orhanizatsiya finansovoho zabezpechennya rozvytku terytorial’nykh hromad [Organization of financial support for the development of territorial communities]. Ph.D. in Public Administration Dissertation. Kyiv. [in Ukrainian].
24. Formuvannya spromozhnykh hromad [Formation of affluent communities]: Practical manual. Second edition (2019). Retrieved from http://auc.org.ua/sites/default/files/library/posibnyk.tergrweb.pdf [in Ukrainian].
25. Siryk, Z. O., & Zhuk P., V. (2017). Investytsiynyy potentsial terytorial’nykh hromad: sut’ ponyattya ta pytannya upravlinnya [Investment potential of territorial communities: the essence of the concept and issues of management]. Rehional’na ekonomika – Regional economy, 2, 16-22. [in Ukrainian].
26. Detsentralizatsiya v Ukrayini ta yiyi vplyv na sotsial’no-ekonomichnyy rozvytok terytoriy: metodychni pidkhody ta rezul’taty otsinyuvannya [Decentralization in Ukraine and its impact on the socio-economic development of territories: methodological approaches and evaluation results]: scientific report (2018). Lviv: Dolishniy Institute of Regional Research of NAS of Ukraine. [in Ukrainian].