State and tendencies of intergovernmental regulation in Ukraine in conditions of fiscal decentralization

Abstract

A balanced socio-economic development of any country is closely related to the efficiency of the system of intergovernmental relations, which should be aimed at optimizing the process of fiscal decentralization and clear definition of the powers of local government. Interbudgetary regulation in Ukraine reflects processes of the national and political importance and is of great importance in the composition of intergovernmental fiscal relations, which priority is growing in terms of decentralization reforms. Purpose. The main objectives of this study are: to summarize a complex task that is resolved in the process of budgetary control; to analyze the dynamics of revenues of the consolidated budget of Ukraine in 2007-2016 and the proportion of own local revenues in GDP; to distinguish formation features of Ukrainian local budgets by region; to analyze volumes of local budgets per capita in terms of area; to highlight the leverage rate of local budgets; to analyze the share of interbudget transfers in total local budgets. Results. The study is a synthesis of the complex challenges that must be resolved in the process of budgetary control, such as: balancing the budget; foster the interest of local governments in the maximum revenue mobilization; reallocation of existing budgetary resources, taking into account local features. The dynamics of the revenues of the consolidated budget of Ukraine in 2007-2016 was analyzed and concluded that the proportion of own local revenues in GDP tended to decrease with a simultaneous increase in the share of the interbudget transfers from the state budget. Abovementioned resulted in the ensuring of a stable share of local budgets in the GDP structure (at 14-15%). As a result of the intergovernmental fiscal decentralization reform by the results of 2016 the share of own revenues of local budgets Ukraine in GDP rose to 7.2%, or 1.1% compared to 2015 with a simultaneous decrease in the interbudget transfers share from the state budget to 8.2% (0.6% compared to 2015). Analyzed the share interbudget transfers in total local budgets, which for a long period tended to increase (from 47.2% in 2007 to 53.4% in 2016), which is contrary to the basic principles of fiscal decentralization. Conclusion. Grounded features of Ukrainian local budget revenues by region and proved that the unevenness of income between regions of Ukraine are often equivalent to the level of industrial production. Analyzed volumes of local budgets per capita in terms of area. Presented the list of influence instruments on local budgets indexes of incomes, including the increase in the minimum wage, inflation, continuing reform of the budget system in the direction of fiscal decentralization and transfer volumes.

Узагальнено комплекс завдань, що має вирішуватись у процесі міжбюджетного регулювання, проаналізовано динаміку дохідної частини зведеного бюджету України у 2007–2016 рр. та питому вагу власних доходів місцевих бюджетів в структурі ВВП , виокремлено особливості формування доходів місцевих бюджетів України за регіонами. Проаналізовано обсяги доходів місцевих бюджетів на душу населення у розрізі територій, висвітлено важелі впливу на показник доходів місцевих бюджетів, здійснено аналіз питомої ваги міжбюджетних трансфертів у загальній структурі місцевих бюджетів.

Представлен комплекс задач, который должен решаться в процессе межбюджетного регулирования, проанализирована динамика доходной части сводного бюджета Украины в 2007-2016 гг. и удельный вес собственных доходов местных бюджетов в структуре ВВП, выделены особенности формирования доходов местных бюджетов Украины по регионам. Проанализированы объемы доходов местных бюджетов на душу населения в разрезе территорий, освещены рычаги влияния на показатель доходов местных бюджетов, проведен анализ удельного веса межбюджетных трансфертов в общей структуре местных бюджетов.