№ 5/2018

Fìnansi Ukr. 2018 (5): 69–79

LOCAL FINANCE

MARTYANOV Maksym ¹

¹Vinnitsa regional council, Research ID : http://www.researcherid.com/rid/
OrcID ID : https://orcid.org/

Local budgets of Vinnytsia region during fiscal decentralization

The article analyzes the first results of the reform of the inter-budgetary relations and the system of formation of local budgets (budget decentralization). The paper considers some elements of the reform and estimates their impact on the dynamics of local budget revenues in the Vinnytsia region. The purpose of the article is to study the regularities of the functioning of local budgets of the Vinnytsia region in the period after the reform of the system of intergovernmental fiscal relations and the transition to a new model of the functioning of local budgets themselves and to assess the impact of the reform on the dynamics of revenues of these budgets. For solving a given scientific problem, the article uses statistic and econometric methods, in particular, the method of modeling panel data with fixed effects. The results of modeling the dynamics of local budget revenues show that the impact of the reform on the dynamics of local budget revenues is statistically insignificant, namely, the growth of revenues in 2015-2016 is due to fiscal (higher rates of taxes, expansion of the tax base due to the increase in minimum wages) and inflation factors. At the same time, the article highlights the positive effects of the reform: the transition to a more effective policy of intergovernmental fiscal relations and the significant growth of budgets for the development of local budgets. It should be borne in mind that the available data for 2 years of implementation of the reform of budgetary decentralization do not give an opportunity to make final conclusions about the success or failure of the reform.

Keywords:local budgets, inter-budgetary fiscal relations, budget decentralization, regional economy, development budget

JEL: H72, H73

Martyanov M. . Local budgets of Vinnytsia region during fiscal decentralization / M. Martyanov // Фінанси України. - 2018. - № 5. - C. 69-79.

Article original in Ukrainian (pp. 69 - 79)

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