The genesis of the definition of the term of “local finance” in Ukraine and in the world is studied. The necessity of the development of local finance framework is justified in view of active processes of decentralization. The components of the local finance system are determined. The subject-object structure of relations in the local finance management in Ukraine is presented.
The objective of the article is the accumulation and review of existing regulatory material regarding the decentralization process, namely the implementation of fiscal decentralization, and financial and legal analysis of the current state of local Finance and their legal regulation reform in modern conditions of development of Ukraine taking into account foreign experience. The relevance of the research topics is the need of the modern understanding of legal regulation of decentralization processes in public administration of Ukraine and the state of development of law in these processes. Doclet themes. The problem of decentralization of financial resources and authority devoted a lot of research scientists (N. Bykadorova, A. Bondarenko, N. Kaminska, I. Karchevsky, P. Kolody, B. Krajnik, I. Legkostup, J. Ostroshenko and others) both in Ukraine and abroad. The author explores the concept of decentralization, financial decentralization, the decentralization of power. Analyzed the legal value of laws of Ukraine: "On principles of state regional policy" and "On voluntary consolidation of territorial communities" for further reform actions in Ukraine. Analyzed components of the new system in the formation of profitable and account parts of local budgets, the determination of the principles of transfer policy and intergovernmental relations. The main objectives of such a system and ways of their implementation are as follows: 1. Ensure fiscal autonomy and financial independence of local budgets 2. The consolidation of local budgets in the stable sources of income and stimulate podatkovni communities. 3. Strengthening the responsibility of relevant ministries for the balance of financial resources and sectoral policies, in particular through the mechanism of providing educational and medical subsidies, subsidies for personnel training. 4. The expansion of spending powers of local authorities by transferring funding from the local budgets of individual budget programmes and agencies, which are now financed from the state budget. 5. The introduction of a new mechanism of budgetary regulation and equalization. In Ukraine the process of fiscal decentralization takes place quite actively, consistently, with a fairly full legislative regulatory the development of this process, which is a positive thing for Ukraine in the historical development of both areas and the state.
The article studies theoretical problems of decentralization of local government, local Finance. The decentralization of power and Finance allows each region the right to successful development. In the current situation, we have the excessive centralization of power and financial resources in one institution, which allows to concentrate all the financial resources at the top and redistribute them down in manual mode, places the region in a complete dependence from the center, making unbalanced system of local government, community, weak, not able to solve the issues of socio-economic development. Shows the macroeconomic indicators of Ukraine and their impact on economic development of regions. The main causes of the current situation and the basic directions and prospects of decentralization of local Finance: the adopted amendments to the Constitution of Ukraine, the extension of the tax potential of the regions, elimination of the "shadow" wages and small businesses avoid bankruptcy organizations, revenue mobilization, reduction of unjustified budgetary obligations, establishing order in the land and municipal property, effective management of local finances. These directions will contribute to the decentralization process, will enhance the role of the region, district, communities in addressing important issues of socio-economic development.
The article analyses the opportunities of financial decentralization in the light of the formation and functioning of the local self-government in Ukraine. The series of works devoted to the problem of decentralization are analyzed. The main trends and challenges for the development of the system of local finances in the transformation of the Ukrainian economy. Considered comprehensive and systematic measures for the development of the system of local finances in the transformation of the economy, the creation of financial autonomy of local authorities. set of interrelated measures for the establishment of fiscal policy, budget management, support local authorities in the system of local finance. Particular attention is paid to the principles of division of expenditure powers, fixing the problem of tax revenues at the local level. The necessity of improving the system of fiscal relations between the central and local authorities to improve the economic feasibility of the process of decentralization. Particular attention is paid to the principles of differentiation of spending authority, fixing the problem of tax revenues at the local level. Is expected to further the development of the level of decentralization in Ukraine, directions of development of local finance in the direction of fiscal autonomy of the regions.
Considering the prospects of regional innovation systems in Ukraine, theoretically found the key organizational and institutional settings that allow the potential of regional innovation systems. A criterion for the onset of systematic innovation at the regional level. They are divided into infrastructure and under- structure parameters. The first question concerns the degree of infrastructure regional financial competence. This includes private and public finances. Where there is a regional stock exchanges, firms, especially small and medium-sized can find financial resources at the local capital market. Regional innovation management process assists in the interaction of the parties, including the competence of public and private resources. The revival of public-private investment in Ukraine can also help to build capacity, reputation, trust and reliability among regional partners. State regional budgets are also important in mobilizing regional innovation capacity. Three types of budget competencies. The first - the regions have the right to manage decentralized expenditure. For example, when the region is the channel through which funds are nation-wide. The second category is applicable in cases where the regions are competent in autonomous spending. This happens when regions determine how the grant will be spent allocated from the national budget. The third category - the regions have the power to collect taxes as well as for the autonomous distribution, which creates opportunities for regional innovation. The strongest basis for promoting regional innovation is found in regions with credit opportunities, and in the regions with autonomous expenditure and authority to collect taxes. The competence of regional authorities to infrastructure issues are divided according control and influence on investment: in 'hard' infrastructure projects such as transport and telecommunications and 'soft' - infrastructure knowledge, such as universities, research institutes, science parks and technology transfer centers. Most regions lack the budget to the most strategic of them, but many have the power to design and construction of such facilities.
The paper studies issues of strengthening the financial basis of regional development as a component of economic security policy and one of the most important areas of administrative decentralization in Ukraine. Main problems of regional development financing identified, ineffectiveness of inter-budget relations proved and the obstacles for accumulation of financial resources of local communities determined. It has been shown that main consequence of regional financial “weakness” was the inability to concentrate resources for prior investment projects and activities of regional development. The measures for strengthening of the financial security of regions in the context of regional policy objectives and according to the announced decentralization and fiscal reforms in regions offered. It is proved that for strengthening the financial base of support for regional development and ensuring self-sufficiency of territorial communities, in terms of the objectives of the new regional policy, it is necessary: to gradually expand the list of instruments used by local authorities to increase the amount of cool tools; disseminate program-target method of compilation and execution of local budgets with the aim of increasing transparency and efficiency of use of budgetary funds; to organize intergovernmental relations, to increase the share of targeted funding, to ensure the formation of horizontal intergovernmental relations; to provide for the expansion of the revenue base of local budgets, transfer of shares separate national taxes, the search for extra-budgetary financial resources.
The first step towards effective fiscal decentralization, which is one of the most important tasks of local government reforms in Ukraine, should be sharing of responsibilities between the levels of government. The article analyzes the shortcomings and contradictions of legal regulation of the distribution of functional and expenditure responsibilities between local authorities in the Budget Code of Ukraine and the Law of Ukraine "On Local Self-Government in Ukraine". That leads to a lack of the government's responsibility for a specific function. It is proved that, due to the above mentioned deficiencies, almost a fifth of the expenditures of local budgets are financed contrary to the Budget Code of Ukraine. The author proposes various guidelines to improve the distribution of functions between the village, district and regional levels of local government based on the application, in addition to the principle of subsidiarity, of the principle of financial capacity of local communities and economies of scale criteria and externalities of certain types of public goods. The next step towards fiscal decentralization should be the redistribution of revenue sources between the different levels through the consistent application of the principle of equivalence.
У статті розкрито питання децентралізації фінансових ресурсів місцевими бюджетами України. Окреслюється чимало проблем цього процесу, зокрема акцентується увага на неузгодженості розрахункових показників Мінфіну та органів місцевого самоврядування, суттєвій дотаційності місцевих бюджетів, переважанні темпів зростання трансфертів над темпами зростання доходів у місцевих бюджетах, незначній частці місцевих податків і зборів у їх доходах, залежності органів місцевого самоврядування у прийнятті рішень та управлінні фінансовими ресурсами від центральних органів. У статті подано окремі рекомендації щодо усунення проблем децентралізації фінансових ресурсів місцевими бюджетами України (The article investigates the decentralization of fi nancial resources of Ukrainian local budgets. The author outlines a lot of problems in this process, particularly emphasizing the incompatibility of calculated indicators of the Ministry of Finance and local governments, considerably subsidized local budgets, the prevalence of the growth rate of transfers over the growth rate of incomes of local budgets, the small share of local taxes and duties in their incomes, the dependence of local governments on central government in decision making and fi nancial resource management. The article presents some recommendations to solve the problems connected with the decentralization of fi nancial resources of Ukrainian local budgets)
Pointed comparative description separate rice of the systems of of public welfare of Ukraїni and some foreign powers; certainly advantages and failings in adjusting of the domestic system of public welfare of 90th years and the features of financing of social sphere of at are analysed modern terms of decentralization of management.