№ 7/2016

Fìnansi Ukr. 2016 (7): 64–

BUDGET POLICY

BAK Nataliia ¹

¹Yuriy Fedkovych Chernivtsi National University
OrcID ID : https://orcid.org/0000-0003-3774-1745

DECENTRALIZATION IN UKRAINE: BUDGETARY RIGHTS, COMMITMENTS AND RESPONSIBILITIES

The article investigates the current issues of decentralization in Ukraine in the context of budgetary rights, commitments and responsibility of different levels of authority, especially local governments. Theoretical approaches to fiscal and budgetary decentralization are synthesized. According to their content, the measures taken in the budgetary field are characterized as a reform of inter-budgetary relations. Foreign countries practices in implementing fiscal decentralization prove that this reform is not sufficient. The accent put on budgetary decentralization leaves unattended qualitative changes in the mechanism of functioning local financial institutes. The essential feature of budgetary decentralization is the lack of concrete definition and personalization of responsibility for the management of budgetary resources, insufficient correlation between rights and responsibilities of local authorities in the process of formation and usage of local budgets, imbalance to the advantage of their responsibilities, formal application of the subsidiarity principle without emphasis on the quantity and quality of public services which are financed from the local budgets, absolutization of the principle of unity within the budgetary system. The author justifies the need to reject the distribution of budgetary expenditures on defended and non-defended. The paper emphasizes the necessity to coordinate the strategy with the tactics of fiscal decentralization, to eliminate discrepancy between legal and normative acts, which regulate financial relations of governments of different levels. It is suggested to introduce the division of local budget into local and delegated funds provided that there is a strict distribution of budgetary rights and responsibilities. This would allow for concretization of the level of financial responsibility of local governments for providing public services to the population.

Keywords:fiscal decentralization, budgetary rights, budgetary commitments, responsibility, principle of subsidiarity, local budgets, defended expenditures.

JEL: H61, H70, H72, H77

BAK N. . DECENTRALIZATION IN UKRAINE: BUDGETARY RIGHTS, COMMITMENTS AND RESPONSIBILITIES / N. . BAK // Фінанси України. - 2016. - № 7. - C. 64-.

Article original in Ukrainian (pp. 64 - 81)

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