№ 4/2016

Fìnansi Ukr. 2016 (4): 65–

FINANCIAL AND ECONOMIC REGULATION

KOZAREZENKO Liudmila

LOCAL BUDGETS: POSSIBILITIES OF HUMAN DEVELOPMENT REGULATION

The article deals with the possibilities of human development regulation using budget management tools at the local level. It is shown that, at present, the development of Ukraine depends on the successful implementation of reform of relations between the central and regional authorities, and, during the period of sweeping changes in the social and economic system, – on the sustainable and adequate financing both at the national and at the local levels. At the same time, social and economic aspects of such reforms become increasingly connected with the development of people, their health, and intellectual potential. The basis of organizing and supporting human development processes under present-day conditions is coordination of interaction mechanisms that take into consideration nation-wide, regional, public, and corporate interests. Developed economies have proven the efficiency of the delegation of social and economic development powers from central to regional authorities and also the fact that the financing of human development entails not only social but economic growth as well that ensures the development of a certain region and the country as a whole, contributes to social stability and creates incentives for members of society. It is emphasized that support for human development becomes especially relevant during a financial and economic crisis, but, at the same time, local budgets in Ukraine lose the power to solve the problem from year to year. This demonstrates the need to improve the system of public finance and strengthen the role of local authorities. It is concluded that the main policy documents prepared in Ukraine concerning social and economic development, do not include human development in top priority tasks, and a relatively low human development index in Ukraine should prompt all branches of power and civil society to take actions to consolidate the institutional environment and increase the efficiency of the management of financial resources used for human development.

Keywords:human development, local budgets, local budgets, local budget expenditures per person, local budgets revenues per person.

JEL: E24, H61, H72.

KOZAREZENKO L. . LOCAL BUDGETS: POSSIBILITIES OF HUMAN DEVELOPMENT REGULATION / L. . KOZAREZENKO // Фінанси України. - 2016. - № 4. - C. 65-.

Article original in Ukrainian (pp. 65 - 83)

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