№ 1/2020

Fìnansi Ukr. 2020 (1): 58–72https://doi.org/10.33763/finukr2020.01.058

BUDGET POLICY

OPARIN Valerij ¹, SARNETSKA Yana ²

¹SHEE “Kyiv National Economic University named after Vadym Hetman”
OrcID ID : https://orcid.org/0000-0002-5181-4333
²SHEE “Kyiv National Economic University named after Vadym Hetman”

Budget regulatory imperatives in Ukraine under conditions of fiscal decentralization

The article is devoted to the problems of creating a balanced budget system of Ukraine. Such a budgetary system should underpin the existing regional development imbalances. The need to address these challenges is growing significantly in the context of the ongoing fiscal decentralization. There are two main areas for addressing existing problems. The first is financial equalization. We have explored this problem in a previous article [1]. The second is budgetary regulation, the essence of which is to carry out territorial redistribution of revenues on the basis of intergovernmental transfers or to use individual standards for splitting certain types of national taxes between levels of the budgetary system. The purpose of the article is to identify the main imperatives of fiscal regulation in the context of fiscal decentralization. Therefore, two key questions arise. The first is what kind of fiscal regulation should be exercised, and what imperatives underlie it. The second is which regulatory tools should be used to actively influence the activities of local authorities. The article explores the theoretical foundations and practical aspects of creating a system of budgetary regulation that is based on the ideology of promoting the activity of local governments in gathering financing resources rather than the passive expectation of funds from the center. According to the results of the study, four main imperatives of fiscal regulation in terms of fiscal decentralization are formulated: optimization of the delimitation of revenues and expenditures between the levels of the budget system, ensuring the effectiveness of investment subsidies, increasing accountability of central and local governments, balancing budgetary equalization mechanisms. The prospects for further research are to conduct an empirical analysis of the distribution of revenues and expenditures between the levels of the budgetary system and to justify the criteria for their optimization in terms of fiscal decentralization.

Keywords:budget regulation, decentralization, public goods, constitutional rights, budgetary subventions, subsidies, regulatory income

JEL: H71, H77

Oparin V. . Budget regulatory imperatives in Ukraine under conditions of fiscal decentralization / V. . Oparin, Y. Sarnetska // Фінанси України. - 2020. - № 1. - C. 58-72.

Article original in Ukrainian (pp. 58 - 72)

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