№ 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)

Download

Downloads :208

1. Verkhovna Rada of Ukraine. (2014). Draft Law on amendments to the Budget Code of Ukraine (regarding budget decentralization) (Act No. 4435a, August 8). Retrieved from w1.c1.rada.gov.ua/pls/zweb2/webproc4_1? pf3511=51901 [in Ukrainian].
2. Voznyak, H. V. (2015). Budgetary policy in terms of local self-government financial basis transformation in Ukraine. Economic annals–XXI, 5-6, 82–85 [in Ukrainian].
3. Kravcіv, V. S., Storonyans`ka, І. Z. & Zhuk, P. V. (2017). Reforming the territorial basis of local self-government in the context of its financial solvency. Economy of Ukraine, 1, 41–51 [in Ukrainian].
4. Kuz`kіn, Ye. Yu. (2016). Theoretical foundations for using targeted intergovernmental transfers to local budgets. Finance of Ukraine, 12, 45–58 [in Ukrainian].
5. Lunіna, І. O. (Ed.). (2016). Development of budget decentralization in Ukraine. Ky`yiv: NAN Ukrayiny`, Іnsty`tut ekonomіky` ta prohnozuvannya [in Ukrainian].
6. Slobodyanyuk, N. O., Konіna, M. O. (2016). The problems of local budgets’ revenues formation in conditions of financial decentralization. Economy and society, 2, 611–616 [in Ukrainian].
7. Taranhul, L. L., Kolyada, T. A. (2015). Features of intergovernmental fiscal flows’ formation within implementation of fiscal decentralization in Ukraine. Finance of Ukraine, 3, 30–44 [in Ukrainian].
8. Moldovan, O. O. (2011). Public finances in Ukraine: experience and perspectives of reforms. Ky`yiv: NІSD [in Ukrainian].
9. Verkhovna Rada of Ukraine. (2015). On amendments to the Budget Code of Ukraine and certain other legislative acts of Ukraine (Act No. 176-VIII, February 10). Retrieved from zakon2.rada.gov.ua/laws/show/176-19/paran64#n64 [in Ukrainian].
10. Mart`yanov, M. P. (2016). Analysis of long-run impacts on local government budgets reveneus. World of Finance, 1, 183–191 [in Ukrainian].
11. Kolomіyec`, І. F., Pelekhaty`j, A. O. (2017). Theoretical and practical aspects of the formation of the consolidated territorial communities in Ukraine. Economy of Ukraine, 4, 46–55 [in Ukrainian].