FINANCIAL AND ECONOMIC REGULATION

KYRYLENKO Olha ¹, PEREVOZNIUK Vitalina ²

¹West Ukrainian National University
OrcID ID : https://orcid.org/0000-0002-5504-5519
²Ternopil National Economic University

Financing of water supply and sanitation enterprises within budgetary decentralization

The necessity of improvement of water supply and sanitation enterprises’ financial support due to their losses and inefficiency of government regulation is underlined in the paper. Some aspects of sector entities finance are analyzed and its main problems are outlined, in particular: setting tariffs on services at the level, below than costs; significant demolition of equipment and water loss; debt of services consumers. It is proved that the best way for reforms in the sector is solidarity financing of water supply and sanitation enterprises development programs with the help of their financial resources and the local budgets resources in terms of fiscal decentralization. It is suggested to define the need of financing in five stages. The foreign experience of public-private partnership in water supply and sanitation is analyzed. According to the unprofitability of national enterprises and imperfection of legal and institutional mechanisms for organization of collaboration and business community in Ukraine it is proposed to use simple forms of attractive investors in the sector. For this purpose, reasonable approach to upgrading some infrastructure by the private operator on the basis of economic and mathematical modeling is ground.

Keywords: financing, budgetary decentralization, water supply and sanitation enterprises, organs of local self-governments.

JEL: H70, H76, L32, L95.

Kyrylenko O. . Financing of water supply and sanitation enterprises within budgetary decentralization / O. . Kyrylenko, V. . PEREVOZNIUK // Фінанси України. - 2015. - № 3. - C. 88-100.