The article reveals the prospects for the transformation of the tax system in an unstable environment and their potential impact on the tax revenues of local budgets. The options for tax reform in Ukraine in terms of personal income tax on wages and its possible impact on tax revenues of territorial communities during the war and after its end are assessed. These include the “10-10-10” tax reform (provides for a reduction in the personal income tax rate); “total” taxation (provides for personal income taxation of all citizens of working age regardless of the amount and source of their income); the wealthy pay more (provides for the introduction of a progressive scale of personal income tax rates to increase the tax burden on wealthier citizens). The author emphasizes that none of the considered options for tax reform in terms of personal income tax is possible and appropriate to be implemented in the short term since in order to increase tax revenues to budgets of various levels, a number of measures should be taken that will make it impossible to minimize tax liabilities. In particular, the “10-10-10” version of the tax reform may lead to a decrease in the financial capacity of territorial communities after the "loss" of military personal income tax revenues to local budgets. Therefore, the introduction of this option during martial law in the country and in the short term after its termination is inappropriate. The second option of the tax reform – “total” taxation - can lead to significant social unrest due to the total pressure to pay taxes even if a person is not working. Therefore, the implementation of this version of the tax reform both during the war and after its end is unrealistic. The third option for tax reform – the wealthy pay more – could lead to the risk of increased shadow economy (e.g. in the employment sector – payment of part of the salary “in an envelope” to minimize tax liabilities) if changes are introduced in the personal income tax during the war or immediately after its end without taking measures to prevent tax evasion. As a result, this will not contribute to the growth of PIT revenues to the budgets of territorial communities. The article argues that in the medium term, given the increase in tax revenues to the budgets of territorial communities from personal income tax on wages, the most realistic option for reforming the PIT rate scale after the end of the war is the introduction of a progressive scale of PIT rates.
The article aims to determine the features of the mechanisms that will be used to restore Ukraine in accordance with the existing division into functional types of territories. In chronological order, the article analyzes the main legislative acts that determine the order and features of the planning process of the recovery of our state from the consequences of the armed aggression of the Russian Federation. The author notes that a new system of regional classification has been developed for the effective selection of mechanisms for the adjustment of the socio-economic sphere. The article emphasizes that when determining what type a specific territory belongs to, as well as taking into account the real level of threat and the scale of destruction caused by the Russian party, an appropriate set of recovery tools should be selected. Their application should be focused on the poles of economic growth, on the territories of sustainable development, and in areas with special operating conditions. The author argues that the reconstruction process must comply with all the principles of European governance. The implementation of democratic transformations within the country, the fight against corruption, and the completion of the decentralization reform are key drivers of the effective application of recovery mechanisms and tools. The article explains that the implementation of measures to implement reconstruction programs in the regions that suffered the greatest destruction and were in a state of temporary occupation is an extremely difficult task and requires an adaptive approach taking into account the entire set of factors of their development. The procedure for restoring the damaged and destroyed infrastructure is considered separately. The authors note that the priority tasks include the establishment of transport connections and interregional logistics. Further measures may vary depending on the extent of damage and specific needs on the ground. The role of international support for the successful implementation of the recovery plan developed by the government of Ukraine is characterized.
recovery plan, functional type of territory, infrastructure, regional growth poles, recovery mechanisms, regional policy
Tourism belongs to economic sectors, which demonstrate the most dynamic development and transformation. In recent years, the popularity of domestic tourism in Ukraine has grown significantly, which is triggered particularly by the intensification of the population’s life activities and forced objective factors, such as the COVID-19 pandemic and Russian aggression against Ukraine. These have resulted in restrictions on foreign travel and relocation of citizens to relatively safe western regions. At the same time, the development of domestic tourism has not only positive, but also negative sides, the main of which include the increase of anthropogenic load on regional ecosystems, depletion of certain natural resources, and, in general, potential negative impact on the environment. First of all, such types of tourism as ecological and rural are affected, which are particularly sensitive to changes in environmental conditions and deterioration of the ecological and socio-economic situation. To ensure sustainable development, tourism activity should be regulated considering the availability and possibility of using the resources that are necessary for its provision. The paper examines environmental and economic constraints that arise in tourism. The necessity of introducing sustainable tourism for the balanced ecological and economic development of the regions is substantiated. The key challenges that have arisen on the way to the development of the tourism industry are identified. The priority of considering environmental constraints over socio-economic constraints is emphasized. The role of various stakeholders in the regulation of sustainable tourism is analyzed, emphasizing the key role of local communities, which are very interested in regional tourism development. The availability of relevant normative documents, which contain a list of environmental and social requirements, will allow to ensure the development of tourism with the minimization of negative impact on the environment. The research was mainly conducted on the example of the Carpathian region of Ukraine, which in the last few years has been marked by the active development of tourism, at the same time being one of the most vulnerable regions in ecological and social terms.
regional development, environmental restrictions, carrying capacity of ecosystems, local communities, standardization of tourism, certification of tourism
Investment policy as an important area of public policy will have a significant impact on Ukraine’s economic recovery after the destruction caused by the Russian-Ukrainian war. The article describes the subjective dimension of the public investment policy in Ukraine, in particular, it identifies the range of state institutions responsible for developing the public investment policy and outlines the limits of their powers. Investment policy entities at the national level include a number of agencies and institutions subordinated to the President of Ukraine, the Verhovna Rada of Ukraine as the legislative branch and the Cabinet of Ministers of Ukraine as the executive branch. The Verhovna Rada of Ukraine approves the volume of public investments made at the expense of the state budget as part of the main directions of economic and social development of the state. The Cabinet of Ministers of Ukraine ensures the implementation of the investment policy and this is one of its main tasks. The Ministry of Economy of Ukraine is the main body in the system of central executive authorities that ensures the development and implementation of the public investment policy in the real sector of the economy. At the regional level, investment policy entities include institutions that are hierarchically subordinated to state authorities, in particular, oblast councils, oblast state administrations, and territorial offices of central executive authorities. The executive power in the districts is exercised by the district administrations, and legislative power, respectively, by district councils. The local level of investment policy entities is represented by local governments. Authors focuse on the peculiarities of investment policy implementation under martial law by military administrations since the beginning of the Russian-Ukrainian war. The spectrum of public investment policy entities in Ukraine described in the article is represented mainly by state institutions and their subordinate agencies. The article notes that investment policy entities include not only public authorities that develop and/or implement such a policy, but also private investors who contribute their funds, investment funds, business associations, and public representatives. Consideration of their interests is also crucial. The article emphasizes that it is essential to build links between public investment policy entities in the format of the triangle “state” – “business” – “civil society” to establish a dialogue and build trust, since it is necessary to focus primarily on domestic investments that the private sector is able to make. Without honest dialogue, trust, and resolution of existing problems, it is very difficult to convince businesses to invest and increase investment. Meanwhile, cooperation between the branches of government and individual agencies, coherence, and clear coordination of their actions are important, which may require improvement of existing legislation, expansion of the powers of individual institutions, or, instead, their reduction.
Public investment is the expenditure of the public sector (national and local authorities) on the creation of infrastructure that is state (or municipal) property with a term of use of more than one year. The sources of financing may include state or local budget funds, borrowed funds, funds of state or municipal enterprises, and fees charged to infrastructure users. Public investment is usually measured quantitatively, annually, as a percentage of total national income over a given period. Public investment can also take the form of traditional infrastructure projects or public-private partnerships, which is most common in Ukrainian practice. Public investment management is becoming a prerequisite and the general goal of socio-economic development. That is, structural changes supported by public investment management institutions ensure economic growth, and their implementation is regulated by the criteria for ensuring the economic security of the state. The article proves that public investment management is a multifaceted category reflecting a socio-economic phenomenon and is considered as a motive and purpose of functioning of macro-systems; the level of autonomy (independence) of the economy, which ensures the achievement of the aggregate vector of interests of the structural elements of the macro-system; a qualitative characteristic of the economic system, which allows assessing its viability in the context of transformational changes. Public investment management is also a tool for achieving the goals of economic, investment, and budgetary policies, and at the same time is a tool for managing public finances. The impact of public investment on the country’s economic development and the welfare of the population directly depends on the goals and expected results of investment at the national and subnational levels. The quality and effectiveness of public investment management directly impacts the achievement of sustainable development goals through the planning, allocation, and implementation of relevant infrastructure investment projects. Public institutions have a crucial impact on both the effective implementation of public investment and the promotion of private investment in infrastructure projects. This means that even the implementation of publicly funded infrastructure projects requires the participation of private companies, which will carry out the work at the expense of public investment. Therefore, without appropriate protection, the public investment system cannot work effectively.
public investment, public investment management, institutional support, system, state
The household as an important economic unit is able to influence the economic development and social welfare of the state. Despite the fact that the topic is researched by many scientists, the rapid pace of changes in the world caused by globalization, technological innovations, and social transformations creates the need to improve the understanding of the theoretical essence of households. The article aims to substantiate the theoretical and conceptual foundations of the functioning of households as an important economic unit aimed at satisfying life needs and managing financial resources. The article examines the role of the household in the economic system as an important economic unit that unites members to meet life needs and use financial resources. The economic essence and content of households, namely their economic aspects and functions, are revealed. The historical path of the development of this concept is highlighted, the key moments in the evolution of the understanding of the household as a financial unit are indicated. The views of various economic schools on the role and essence of the household are analyzed. The notable role of the households for the socio-economic development of the state in the conditions of market relations is emphasized. The problem of the essence of the household as an institutional component of the economic system is outlined. The difference between the concepts of household and family is distinguished, analyzed, and clearly structured. Households are considered as entities that have a strategic and tactical purpose. The classification of households according to various characteristics, such as territorial location, size, and participation in economic exchange, is systematized. The importance of understanding the financial aspects of a household, such as resources, income, expenditure, and savings, which reflect its economic stability and ability to meet needs, is justified. Emphasis on the relationship between consumption and savings reflected in the household income equation is outlined. As a result of the conducted research, through a thorough analysis of classification features, financial aspects, and the relationship between consumption and savings, the understanding of the importance of the household in the economy and society is expanded.
The article analyzes the peculiarities of economic diplomacy in the context of global uncertainty. The authors argue that challenges for national economies are being developed under the influence of global megatrends. The main global megatrends affecting economic, social, and environmental outcomes are assessed. The article identifies the main trends that have long-term tendencies and highlights the areas they cover: nature, people, government, technology, and economy. The authors detail the main trends in the economy, in particular, the formation of a circular economy, the growth of corporate responsibility, rising inequality, changes in the labor market, the vulnerability of global value chains, etc. The world is experiencing not just crises but permanent crises, essentially creating a state of permanent instability. The impact of the war in Ukraine on global instability is argued. The main forms of economic diplomacy are analyzed. Emphasis is placed on investment, trade, and financial diplomacy. Significant differences in the positions of scholars on the components of economic diplomacy are revealed. The article argues that the emergence of new global trends and their transformation into global megatrends leads to the emergence of new types of economic diplomacy. The main changes in the investment and foreign trade policy of Ukraine in recent years are identified, with the intensification of European integration processes taking an important place among them. The authors confirm that the EU remains a leading partner for Ukraine, providing assistance in the economic, humanitarian, and military spheres. Changes in Ukraine’s foreign trade are analyzed and the need to strengthen export capacity and expand its presence in the markets of the world is substantiated. The changes in the geographical structure, primarily in the export of goods from Ukraine, are detected. The NAZOVNI platform is favorable for the development of Ukraine’s export capacity. The changes in the structure of foreign direct investment in Ukraine’s economy are identified as one of the trends. The Advantage Ukraine platform is positive for finding potential investors and implementing projects. Special attention is paid to ensuring the energy security of the state and the role of energy diplomacy as a component of economic diplomacy is substantiated since energy management has a direct impact on economic development and stability. The expansion of international partnerships and the attraction of funds for the reconstruction of Ukraine are noted, but this process requires support and guarantees from the state. The following priorities of Ukraine’s economic diplomacy in the current conditions and for the future are determined: the development of a foreign policy strategy adapted to external challenges, implementation of strategies to support and protect national interests, development of effective integration of Ukraine into the global economic space, diversification of trade relations, etc.
global megatrends, global uncertainty, economic diplomacy of Ukraine, investment diplomacy, financial diplomacy, energy diplomacy, foreign trade, foreign investment
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