The article is aimed at deeper studying and identifying the theoretical and methodological principles for the formation of sources of expansion of the fiscal space of territorial communities in the context of transformation processes in Ukraine. The publication proposes the authors’ own definition of the category of «fiscal space of territorial communities» as an environment for interaction between fiscal policy actors on the redistribution of budget resources and ensuring the financial capacity of amalgamated hromadas (AHs). The composition of revenues of budgets of AHs is analyzed. The main advantages of decentralization and certain risks inherent therein are presented. The goals of administrative and financial decentralization in terms of levels of public administration are characterized. The share of local budget revenues in the GDP of different countries is studied. It is defined that in the process of decentralization, the tax system of Ukraine has undergone changes in the structure of tax distribution between levels of management directed towards the benefits of local self-government. In particular, as the financial basis of local self-government in terms of the performance of their own powers is determined taxes and fees that have a direct «connection» with the territory of the relevant administrative and territorial unit. By amending the Budget and Tax Codes of Ukraine, it was achieved to consolidate stable sources of income of local budgets and expand the budget powers of local self-government bodies. Prospects for further research in this direction are the development of practical recommendations on the sources of expansion of the fiscal space of territorial communities in the context of transformation processes in Ukraine, the definition of effective and affordable ways to finance territorial communities.
Objective. Theobjective of the study is to determine the essence of cryptocurrencies and substantiate them as a type of digital financial asset. Methods. Methods of synthesis and generalization, comparative and stochastic analysis are used to define the basic concepts of cryptocurrencies, their main types and substantiate cryptocurrencies as a type of digital financial asset. Results. In the process of studying the meaning of the term "cryptocurrency" it is explained as a financial instrument, a global means of payment, circulation and investment, a specific asset, digital (virtual) currency, which exists in electronic form. Cryptocurrency is a special type of digital financial assets, the operation of which is based on a decentralized mechanism of issuance and circulation and is a complex system of information technology procedures based on cryptographic protection methods that regulate the identification of owners and record the change. The characteristics of the main types of cryptocurrencies are singled out and given, which include: Bitcoin, Lightcoin, Pircoin, Neimcoin, Fezerkoin. It is also determined that the main criteria of target functions, the calculations of which are used in cryptocurrencies, are the following: the inevitability of transactions; opportunity for anyone to check their validity; the complexity of calculations with the predicted speed. The factors of dependence of the value of cryptocurrencies are considered. They include: network factor (network size, breadth of its use as a measure of price or utility for consumers); demand or utility; attention of investors. The basis of each of the cryptocurrencies is a blockchain. The sequence of each transaction is determined by complex cryptographic functions: each transaction includes an electronically signed hash of the previous transaction; transactions are collected in blocks, and the hash of all transactions of the block is calculated for the header by constructing a Merkel tree; the block goes through the confirmation procedure with the inclusion of the hash of the previous block. The principle of operation of the blockchain is determined. It includes decentralization: the absence of a server in the chain; the work of the whole blockchain is supported by each participant; reliability: filtering operations; hash substitution is not possible; universality: the use of blockchain in various fields; theoretical infinity: addition of records to infinity; transparency: the inability to change data because transactions are stored and presented in the public domain. Thus, cryptocurrency is a high-risk and highly volatile instrument of a financial asset that can reduce risk through diversification, increase profitability and the desire to keep up with the times, based on blockchain technology.
Budget financing of social protection and social security is one of the important factors of social development, which determines the standard of living and well-being of the poorest. The leading role of local budgets of Ukraine in the implementation of the social function of the state is determined by increasing the efficiency of the process of providing public services due to proximity to their immediate consumer. This process is based on the principle of subsidiarity, requires a sufficient level of financial security of local governments and demonstrates the basic idea of the concept of budget decentralization. The current practice of financing measures for social protection and social security of the population by local budgets of Ukraine is analyzed in the article in order to determine its effectiveness in conditions of limited budget resources of the state and the need to provide social guarantees for citizens. The grouping of EU member states according to the priority of expenditures on social protection of the population was conducted, a comparison with the corresponding indicators in Ukraine was made. The share of expenditures on social protection and social security of the consolidated budget in the GDP of Ukraine is calculated. The role of expenditures on social protection and social security in the expenditure part of local budgets of Ukraine is determined, their structure is considered. It is proved that the financing of social expenditures is chaotic; there are no steady trends in the dynamics of the share of individual components of social expenditures. In view of the reform of budget decentralization in Ukraine, the distinction between budget financing of social protection in the context of state and local budgets is studied. It is determined that the share of expenditures on social protection and social security in the structure of local budgets of Ukraine is high, however, in practice it does not always provide an adequate level of quality of social services to the population. The need to develop a comprehensive approach to reforming the budgetary mechanism for the implementation of the social function of the state on the principles of stability, transparency and balanced parity of interests of the state and society is substantiated.
Одесский региональный институт государственного управления Национальной Академии государственного управления при Президенте Украины, Светлана Осадчук
Goal – the goal of the paper is to put into perspective the institutional and legal framework of the decentralization reform in Ukraine, as well as to identify problems, explore trends, and provide proposals in reference to the relevant foreign experience in the field. It argues that the decentralization reform in Ukraine has positive results and is an important step towards increasing the autonomy of local authorities. In concludes with arguing that Ukraine should apply the relevant experience of foreign countries while conducting its decentralization reform. Research methodology – the methods used in the article are analysis of official docu ments coming from the Ministry of finance, the Ministry of Economics and the Tax Service of Ukraine, as well as analysis of the factors that promote the autonomy of local government in Ukraine. Score/results – the article is distinguished by a sufficient level of scientific analysis and has provisions, suggestions and practical recommendations that can be used for further research on decentralization issues. Originality/value – the article presents the original complex approach to the problem of decentralization reform in Ukraine and provides substantial analysis of its legal and institutional framework.
This research is aimed at detecting legal and organizational requirements for the Blockchain application in State regulation of space activity. The most precise attention is focused on considering the compliance with the space authorization requirements, ensuring the registration of space objects and the implementation of foreign trade agreements within the space sector of the economy. The research is based on results of the previous in-depth study conducted by the authors, which was dedicated to the legal nature of the DLT (distributed ledger technologies), and in particular its most popular example Blockchain, the basic elements and models of the technology, the main spheres of its application in the framework of space activity in order to guarantee realization of rights and compliance with obligations of public and private space actors in the process of conducting the outer space activities, as well as legislative innovations to regulate the utilization of the Blockchain in different countries, as well as international standards and practices and promising legal mechanisms. Thus, the authors created logical preconditions to cover in this publication the prospects of state regulation of space activities in Ukraine using the Blockchain technology. The authors consider usage of different types of Blockchain ledgers (public ledger with authorized access and with/without special validator) to implement different tasks in the process of regulating space activities, such as guaranteeing fulfillment of conditions of foreign economic agreements on the basis of smart contracts concluded between business entities and for maintaining the state register of space objects. The research proposes several scenarios that are acceptable both in terms of technical characteristics of Blochchain and legal requirements under which a number of central authorities can exercise their powers to regulate space activities using distributed ledger technologies. In addition, the study demonstrates an effective mechanism for ensuring the allocation of responsibility for the registration of space objects between the owners of the launch vehicle and payload to prevent situations when the spacecraft remains unregistered in orbit as a result of non-compliance with contractual obligations or non-inclusion of certain clauses in such agreements. The model agreements between Ukrainian and foreign space actors are proposed to be implemented by governmental institutions and used as a preventing instrument, according to which a conflict of laws can be solved and the state responsible for registering space objects in the Blockchain Network can be defined.
This article considers a fundamentally new type of forensic objects – virtual assets. It is noted that currently in Ukraine there is no legislation governing the circulation of virtual assets. The concept of the term «cryptocurrency» is defined by the state bodies of Ukraine, the issues of the essence of cryptocurrency, the order of its circulation are investigated, the assessment of the current state of cryptocurrency in various aspects is given. An algorithm for identifying cryptocurrency and its owner during forensic examination of virtual assets is proposed. Methodological issues of cryptocurrency valuation are considered. It is noted that in the decentralized economy of digital assets, the loan interest rate is absent or works completely differently. The absence of refinancing rates and derived key rates in digital finance, as well as other regulatory instruments, is due to the lack of centralized monetary policy institutions for cryptocurrency. It has been found that the application of traditional valuation and financial analysis methods to digital assets is completely incapable, as all models used for this type are based on borrowed interest and the value of money over time, as interest rates in the centralized financial system are ultimately set by monetary authorities. issuing currencies. It is offered to determine the value of cryptocurrency during the forensic examination of virtual assets at the exchange rate with appropriate adjustments.
The article explores the possibilities and international experience of using multi-functional and multi-level information blockchain technology, the main purpose of which is reliable accounting of financial transactions with various assets. A mechanism for determining the legitimacy of transactions sequence carried out using distributed ledger technology is considered. The main directions of the distributed ledger technology application by the business community in all spheres and sectors of the global economy are identified. The mechanism of using smart contracts based on block-technology in the Treasury servicing system was designed and presented. The preformed mechanism covers the management process of all Treasury servicing procedures of the estimates expenditure part of budget managers. The complex of advantages from the implementation of distributed ledger technology to the Treasury servicing system for state and local budgets is determined.
Decentralization of authority in Ukraine takes place against the background of the general difficult economic situation caused by both internal unrest and the global crisis provoked by the Coronavirus Epidemic. Under such conditions, the issue of creating local communities capable of financing their own expenditures, and especially development expenditures, becomes acute and relevant. The purpose of the article is to develop proposals for improving the mechanisms of distribution of funds in the community in the context of their direction to improve the living conditions of the population in accordance with the identified priorities. To achieve this goal, it is proposed to use a matrix of priority needs of the community, which is a novelty of the study. The following methods were used in the article: analysis and synthesis (to collect and systematize the results of existing research); statistical (for statistical data processing); comparison (to compare indicators for different groups of communities); matrix (to determine the priority of community needs). The paper evaluates the financial capacity of local communities formed during 2015–2019. It is determined that large communities, with a population of more than 5,000 people, with an area of 400 km2 and more, have the highest level of socio-economic capacity. According to two other criteria, the solvency index and the share of local taxes and fees, the leaders are small communities that have production on their territory, recreational areas, and so on. It is proved that the important point is the organization of management of available resources. Because in the end, the living conditions in the territory are determined not only and not so much by the availability of resources, but by the efficiency and directions of their use. It was found that the current mechanism of distribution of “free” funds is based on a purely subjective approach and is based on “existing needs”. Strategic documents are often only formally used in the budget process. To minimize the miscalculations in the current and strategic planning of the integrated development of the united local communities, it is proposed to use the matrix method of determining the priority of needs. The number of blocks of the matrix and the levels of needs for each block are variables and depend on the specific situation in the community. The presence in the matrix of information about the cost of meeting each need will allow make decisions with a certain amount.
The introduction of local government reform in Ukraine, part of which is financial (fiscal) decentralization, the functioning of local budgets has forced to significantly change the approaches of local governments to the management of community funds. Despite the clear provisions of local government reform, local councils have a number of problems with filling the revenue side of local budgets, leading to inefficient and underutilized use of community funds. A number of Ukrainian scholars pay attention to local finances, but the issues of filling and using local budgets are mainly considered in terms of articles of the general fund, while the special fund is characterized by funds coming to specific purposes and almost unmanageable. The purpose of the study is a detailed consideration of the theoretical foundations of the existence and functioning of a special fund of local budgets, its role and importance in performing the financial functions of the community. The new budget governance mechanism has forced local authorities to step up their efforts to address their own issues and costs, allowing them to keep significant sums at their disposal, which, however, are not sufficient. The opportunity to earn more income has also been offered by the reform of financial decentralization, but it requires cohesion in the community between all its main components: government, business and the population. Finding ways to increase the local budget to finance their own issues requires a constant search for opportunities to generate additional income, sources of use and use of reserves, which is possible, appropriate and increase the efficiency of local budgets. Such possibilities have been identified and described in this study. The share of the special fund of local budgets, as you know, is not the largest, but the work on its replenishment has not only financial but also a certain synergistic effect in the community, promotes cohesion and motivation for further social and economic development. Unfortunately, among the management of these institutions and local self-government there is often no desire to consider the possibility of finding their own reserves for the implementation of such activities, which significantly reduces the financial capacity of the local budget.
The use of various electronic gadgets and Internet communication has accelerated the development of the company in various areas of its activities, including in terms of accounting. The article presents data on the state and expected results of blockchain development in the world and in Ukraine, illustrates that the introduction of blockchain technology is currently taking place in various fields, one of the most promising of which is accounting and auditing. Transfer of all possible registers, investment projects to blockchain, connection of electronic services to block technology – one of the key tasks set by Ukraine at the opening of the fifth conference "Blockchain & Bitcoin Conference Kyiv", which discussed the introduction of distributed register technology in government processes and business, as well as the creation of a regulatory framework for the cryptocurrency industry and Initial coin offering (ICO). The purpose of the article is to investigate the level of use of blockchain technology by Ukrainian companies today in the field of accounting and auditing. The advantage of using blockchain technology is that it allows a company to record both sides of a transaction simultaneously in a shared book in real time, rather than simply storing verified records of financial transactions in separate privately created databases or ledgers. Among the most promising areas of implementation of the blockchain in Ukraine and the world, practitioners and experts called the accounting of receivables and payables and its repayment, accrual and payment of taxes, operational accounting and reporting, as well as work with documents and their storage. In the article, it is substantiated that the blockchain as an environment for economic processes and operations will lead to changes in the methodological tools of accounting and virtualization of accounting processes.
Background: One of the problems of the modern lawmakers in different countries is that they try to regulate an object before they study the nature of its origin, which, logically, entails many errors regarding its definition in the legal framework. The absence of unified definitions and clear classification of virtual assets as tools for implementing the methods of financial and management accounting of property according to their fundamental and unique features makes it nearly impossible to determine the features of virtual assets important for legal regulation and, therefore, to enshrine them in laws and establish a proper legal framework. The paper is dedicated to solving a relevant and cross-discipline scientific and applied task of developing a comprehensive multilevel classification of virtual assets. Unlike the few existing classifications that focus on parts of the virtual asset phenomenon and selective methods of its implementation, the paper proposes an all-encompassing comparison of all known types of virtual assets, which confirms the comprehensiveness of the classification proposed in this paper. Purpose: To develop and substantiate a comprehensive and multilevel classification of known types of virtual assets, which allows solving the cross-discipline scientific and applied task of systematizing virtual assets for future development of a single approach to regulating relations, the objects of which are different types of virtual assets. Materials and Methods: In order to study the nature of virtual assets and develop a comprehensive classification, a set of scientific research methods has been used: analysis, including cause and effect analysis, synthesis, comparison, generalization, systematization and interpretation of results and induction. Results: The author describes a triune nature of virtual assets: technological, economic and legal, information and applied. This classification of virtual assets will allow determining promising tools for accounting of property and rights. Unlike other known approaches to differentiating virtual assets, where crypto-assets (or cryptocurrencies) were unjustified “leaders”, the author has distinguished the group of tokenized assets for the first time. This particular group, due to its direct relation to property, allows performing accounting as well as reaccounting of property and rights in modern digital accounting systems – decentralized information platforms based on the distributed ledger technology (blockchain), whereas this accounting cannot be performed using crypto-assets due to absence of direct relation to property. Out of virtual assets, the author distinguishes a digital asset and analyzes the semantic features of the term “digital asset”. The digital asset is based on a unique information resource as the original asset and on the property of derivativeness from the real asset, which greatly differentiates it from other types of virtual assets. All of that allows considering it as an effective tool for implementing the methods of financial and management accounting of property. Thus, owners of digital assets can use the new way of accounting of their property and personal non-property rights. Based on the properties of a digital asset, the author distinguishes other types of virtual assets: polyasset and monoasset, with the relevant examples. The author provides the characteristics of their features and structural components while comparing them to the features of digital assets and giving clear and well-known financial and legal analogies regarding the implementation of mutual obligations between parties to a traditional deal. The paper also contains the first systematization of seven properties and parameters of a tokenized asset and, therefore, description of properties of three variations of a tokenized asset: monoasset, polyasset and digital asset. This allowed presenting the varieties of virtual assets as a three-level classification based on the complexity of the nature of virtual assets. The author’s classification distinguishes seven types of virtual assets and contains their description. Conclusions: Overall, the proposed approach to classification allows giving a scientific answer to the question of how to compare the multitude of known virtual assets and how to relate them to the legal framework of a state. These developments will be useful for legislators in basically every country, financial, tax and banking state bodies, as well as private companies when keeping books and performing accounting of virtual assets in their business activity.
The purpose of the article is to conduct a retrospective analysis of the volume and structure of financing of public goods in accordance with the change of the political elite in Ukraine (changes of the Presidents of Ukraine).The research methodology consists in calculating the dynamics of the expenditure part of the consolidated budget of Ukraine in terms of functional classification of expenditures, the share of the main items of the consolidated budget expenditure for 1992-2020, the share of the expenditure part of the consolidated budget of Ukraine and the main expenditure items in GDP. According to the results of the study, the dynamics of changes in the total volume and structure of financing public expenditures in accordance with the change of the political elite is revealed. The practical significance of the analysis indicates that the system of expenditure of the consolidated budget of Ukraine, respectively, the structure of financing public goods, is imperfect and needs to be adjusted. Thus, the largest share of expenditures of the consolidated budget of Ukraine, which has recently been decreasing from year to year, is spent on financing social protection and social security. The volume of expenditures on economic activity, which is able to give impetus to the development of the state economy, is insufficient. Expenditures on education and healthcare in Ukraine have been significantly reduced. Due to these budgetary resources, the financing of national functions by the state, financing of public order, security and the judiciary has been increased. Imperfection of fiscal policy, unreasonable financing of certain areas, insufficient control over the implementation of budget programs, their inefficiency and many other problems lead to irrational use of funds from the budgets of Ukraine. Therefore, in order to establish stability in the economic sphere of the state, it is necessary to restrain the growth of the share of consolidated budget expenditures relative to GDP. This will reduce the tax burden on the population and business, reduce the state budget deficit of Ukraine. When allocating expenditures, it is necessary to start from the size of the revenue side of the budget in order to achieve proportional growth of revenues and expenditures. It is worth paying attention to ensuring reliable control over the movement of budget resources. In order to increase the degree of satisfaction of the needs of the population in public goods, it is necessary to develop the political consciousness and political culture of citizens, to increase the level of financial decentralization in the country.
The implementation of the financial decentralization reform in Ukraine, which is the most important component of the general reform of local self-government in Ukraine for seven years, already has the first results and materials for research and conclusions. The state has proposed stages of reform and further activities of local governments. The government ensures the declared national expenditures delegated to local councils and recognizes the significant degree of their independence in planning, creating and implementing their budget plans. However, at the local level there are a number of problems that lead to inefficiency or inexpediency of costly financial activities. The article considers the most significant, effective and universal conditions and factors for improving the efficiency of spending financial resources of local budgets in the implementation of local government reform in Ukraine. The reasons for the need to implement the reform of financial decentralization and the problems it should solve are presented. Among the described bases of increase of efficiency of use of means – legislative, organizational, resource. Their definition was made possible by studying the results of community spending management during the first years of the reform. Most of them have an organizational character, i.e. one that is possible for the community to implement as a cohesive social body at the local level, have a low level of costs or opportunities for external financing or co-financing. Factors of its implementation, author’s comments and evaluation of efficiency are provided to each defined condition. The most important among the basics of effective spending of local budgets are: the availability of necessary and quality legislation, preparation and use of motivated staff of local governments, creation and implementation of social dialogue in the community, comprehensive control and analysis of public spending, determining responsibility for job responsibilities relevant employees, use of foreign experience and best financial practices of Ukrainian communities, use of energy-saving technologies, optimization of local government maintenance costs. Each of the presented bases has the described factors of their implementation which are described in article. The use of such factors makes it possible to use the available on a possible basis the effectiveness of the use of local funds, an important component of the community’s own resources during the reform of local self-government.
The article is aimed at disclosing the role and significance of the excise tax on fuel in filling local self-government budgets in the context of the implementation of budget decentralization, also disclosing the main aspects of excise tax reform, changes in its distribution between budgets and finding ways to ensure the stimulating impact of excise taxation on the socio-economic development of territorial communities (hromadas). The article describes the steps taken to strengthen the financial capacity of local self-government (changes in the sources of filling the hromadas’ budgets) by introducing budget decentralization, steps to implement decentralization in the sphere of road infrastructure of Ukraine (distribution of functions and powers in the road sector at the subregional level of management and introduction of an updated mechanism for financing the road industry). The significance and role of excise tax on fuel in the formation of budgets of territorial communities in the context of implementation of budget decentralization and decentralization in the road sector are analyzed and disclosed. The main aspects of excise tax reform, changes in its distribution between budgets during 2014-2020 in the context of the implementation of decentralization are presented. A number of substantiated arguments are given regarding the need to preserve the crediting of the excise tax on fuel to the local self-government budgets. The issue of the need to improve the distribution of subventions to roads in order to achieve fairness and eliminate the asymmetry of the financial capacity of territorial communities to develop road infrastructure and ensure the stimulating impact of excise taxation on the socio-economic development of all territorial communities is actualized.
The article is dedicated to the analysis of the revenues of local budgets and the state budget for the period from 2008 to 2020. The ratio of revenues to state and local budgets is calculated. These parameters are compared and the main trends are identified. It was found that the level of financial centralization of budgets remains consistently high. However, changes in the structure of budgets related to decentralization reform have not lost their relevance. It is researched the dynamics of the main components of local budget revenues according to the Budget Code of Ukraine (tax revenues, non-tax revenues, revenues from capital transactions, official transfers). The most important indicators are determined and their dynamics are analysed. t was found that the financial stability of the budgets of territorial communities is possible in the presence of their own financial resources, as well as the ability of local governments to accumulate and use them. Given the need to review the financial capacity and independence of local budgets, the indicator of financial decentralization of tax revenues for 2008-2020 is calculated. It is also realized an analysis of the dynamics of growth of tax revenues in the structure of local finance. The dynamics of changes in tax revenue indicators is studied and the influence of decentralization transformations on their structure is revealed. The dependence of their indicators on the implementation of the reform of the financial transformation of the public administration system was also revealed. It is pointed out the dynamics of the share of official transfers in the structure of revenues to local budgets and their growth rates. According to the results of the research, it has been identified peculiarities of the intergovernmental transfers impact on the level of financial autonomy of the budgets of territorial authorities in the context of decentralization reform. Also, on the basis of this study, the main problems of filling the revenue base of local finances are identified and ways to solve them are formulated, which will increase responsibility and expand the range of powers of territorial communities.
In today’s world, the international community provides significant support in carrying out socio-economic and political reforms to countries that need it. Such support is provided in the form of official aid for the purposes of development, which includes international technical and humanitarian assistance, loans for repayment of foreign debt on preferential terms, financing of project activities. The article analyzes the state of Ukraine’s cooperation with international financial organizations in providing financial and technical assistance for the implementation of projects that are of great importance for structural reforms of the domestic economy. The national economy of Ukraine has been experiencing a lasting shortage of financial resources necessary for innovation and investment development projects, also for current needs of the State. Given the difficulties of mobilizing free cash in the domestic capital market, Ukraine attracts resources in foreign markets. Expanding partnerships with international donor organizations allows not only to find additional sources of funding for projects aimed at socio-economic and humanitarian development, but also to provide real help to those in need. The implementation of joint projects and programs involving communities and local authorities in practice makes it possible to gain useful and important experience based on the best world and European practices. It is examined that in the national economy the urgent problem is the search for new types of interaction between communities to solve socially important issues, including the search for unconventional sources of financing. To a large extent, the search for and involvement of funds in the social sphere is facilitated by innovative technologies for financing social development – fundraising, crowdsourcing and crowdfunding platforms, which are manifestations of social communications and become relevant in the context of decentralization and community development.
The article considers the theoretical foundations and problems of functioning of local self-government bodies in the implementation of budget decentralization in Ukraine. In the process of reforming local authorities, the dependence of local budgets on the State budget is determined. The development of budget decentralization for the period 2015–2021 is considered, namely: the number of amalgamated hromadas, the share of the local budgets’ own revenues, and the structure of the share of revenues of the general fund of local budgets (without transfers). The revenues to the budget of the city of Irpin, their tendencies and efficiency of use are highlighted and analyzed. The forecast of budget revenues in the city of Irpin is developed taking into account all indicators used to assess tax revenues and fees, expected indicators of socioeconomic development and expected tax revenues of taxes and fees, as well as taking into account the proposals of the bodies that control the distribution of tax revenues and fees to local budgets of the region. The role of taxes in the system of local regulation of economic processes provides an impact on society, its structure and dynamics, ensures the stability of budget revenues and self-sufficiency, which provide for the development of an effective strategy for the development of the tax system based on realistic forecasts of socioeconomic development. The methods for improving control over the financing of local authorities are proposed. Local self-government bodies are able to transform the tax base at the local level through tax revenues, which provides opportunities for the full implementation of their functions and powers influencing the financial and economic processes. For the future forecast and improvement of sustainable development, it is necessary to anticipate the threats and risks of financial stability. Thus, their negative manifestation in the future is minimized or ways to minimize losses from their impact are determined
The article is devoted to the study of cryptocurrency as a new means of payment, which is relevant both in Ukraine and abroad. The urgency of the problem described in the article is due to the accelerated scientific and technological progress and global computerization of society, where modern technologies contribute to the emergence and development of new mechanisms of the economy, in particular, relations using non-cash payments. The main features of cryptocurrency are considered and argued in the form of its advantages: availability, speed, decentralization, security, and disadvantages: unreliability, distrust of users, inability to cancel transactions, use to commit illegal acts. The features that are controversial in modern conditions are anonymity and transnationality. The main problems of cryptocurrency and its legal regulation are generalized. Emphasis is placed on the practice of regulating the cryptocurrency market in the European Union, as well as on the legislation of the Republic of Estonia in the field of virtual assets. The legal status of cryptocurrency in Ukraine is considered, which is an urgent problem on the way to its legalization both in the legislative and technical plan. Attempts to legally regulate a new type of currency are analyzed. Bills and acts of the National Bank of Ukraine in the field of cryptocurrency circulation are described. Gaps in the current legislation, in particular in the Law of Ukraine "On Prevention of Corruption", were identified, and ways to solve such problems were suggested. It is concluded that it is necessary to develop and create effective legislation in the field of regulation and control of cryptocurrency circulation not only at the national but also at the international level, because otherwise there is a threat to economic and financial life of the state and society and other problems for the international community. in the form of criminal acts with cryptocurrency, because today in Ukraine there is no effective legislation on the circulation of cryptocurrency, and the number of problems with the use of digital currency is growing every day, so it is worth paying attention to such components as the Internet and virtual assets, as in the leading countries of the world this direction is important in domestic and foreign policy.
The article investigates the structure and dynamics of capital expenditures and capital investments at the expense of local budgets during 2010-2019. It has been established that since 2015 in Ukraine there has been an increase in capital expenditures of local budgets, both in the total amount of expenditures of local budgets, and in GDP as well. This is due to the growth of the local budgets resource base in connection with the decentralization reform. Also, a positive trend of growth in the percentage of capital expenditures of local budgets is revealed. This fact reflects the budgetary investment intensification at the local level. It was found that the growth of capital expenditures from local budgets occurs in the direction of the growth of capital transfers to enterprises (up to 40% in the total amount of capital expenditures). This may be due to the replenishment of the registered capital of utilities, a significant part of which is formed because of a medical reform. Major maintenance, reconstruction and restoration traditionally remain at a high level in the structure of local budgets capital expenditures. The significance for local budgets and procedures for obtaining various types of financial support for regional development from the state budget is also studied. It has been established that the investment potential of local budgets is formed by their own revenues to the development budget, as well as by funding from the state budget in the form of subventions to local budgets for the formation of the united territorial communities infrastructure (0.3-0.4% in the revenues of local budgets); subventions for the implementation of measures for the certain territories socio-economic development (0.2-1.2%) and financing of investment projects at the expense of the State Fund for Regional Development (0.7-1.03%). It was found that the growth of capital investments from local budgets to a small extent depends on financial support from the state budget. It was also clarified that the use of funds for the regional development financial support at the expense of the state budget does not quite correspond to the goals defined by legal acts. The problems of the efficiency of financing investment projects at the expense of the SFRD funds and subventions of socio-economic development have been identified. Recommendations are given for eliminating the identified problems of the effectiveness of financing investment projects for regional development.
Purpose. The aim of the article is deepening ideas about the place, role, tasks and mechanism of operation and prospects for the spread of cryptocurrencies as an innovative institutional form of money circulation in the context of globalization. Methodology of research. The theoretical and methodological basis of the study are the dialectical method of cognition, the conceptual provisions of economic theory, scientific works of foreign and domestic scientists on the mechanism of operation and prospects for the spread of cryptocurrencies in the context of globalization. A systematic approach to the study and timely detection of global problems of transformation of the nature of financial intermediation in the monetary system is also used. The study of economic aspects of the content of virtual digital assets (cryptocurrency) is carried out using such methods as analysis, synthesis, abstraction, generalization, scenario planning and forecasting of economic processes. Findings. A critical review of scientific developments on the content and features of the mechanism of cryptocurrencies in the economy with further outline of prospects for their spread in the context of globalization is performed. The developed theoretical and practical principles made it possible to reveal the content of transformations in the system of money circulation. The conducted research allowed to state the difference between the quasi-financial assets (digital virtual money) and traditional (fiduciary) money. Originality. The substantiation of theoretical and applied ideas about the speed and volume of distribution of virtual digital currencies in the conditions of globalization has been further developed, approaches to non-state payment support systems have been systematized. Practical value. The results of the conducted study can be the basis for further research on the spread of virtual digital currencies (cryptocurrencies), can also be used to shape the financial policy of Ukraine in the monetary system. Key words: cryptocurrency, global economy, financial intermediation, central bank, digital platforms.
Against the background of global transformations and imperatives, it has been considered that countries need to find and form effective public administration strategies. In these circumstances, Ukraine is reforming decentralization in order to optimize the activities of the state apparatus through changes in the administrative-territorial structure and redistribution of powers between central and local authorities. The main tasks for the government are to find effective mechanisms for decentralization strategy and assess their impact on the development of individual territories within the country. The impact of financial decentralization on investment processes in the Dnipropetrovsk region has been analyzed in this article. The stages of decentralization in Ukraine have been considered and the main achievements and tasks of each of them have been highlighted. The regulatory framework, which is the foundation of decentralization reforms in Ukraine, has been described. Indicators of development of united territorial communities (UTC) in Dnipropetrovsk region and Ukraine on the basis of comparative analysis have been considered. Conclusions are made about the leadership of the Dnipropetrovsk region from the results of reforms. The dynamics of revenues and expenditures of local budgets of the Dnipropetrovsk region for the period 2014-2019, as well as the change in the amount of funds by accounts have been analyzed. It has been concluded that there is a surplus and budget deficit in the specified period. The dynamics of capital investments of the Dnipropetrovsk region for the period 2014-2019 has been given and the structure of their financing at the expense of the state and local budgets has been analyzed. Conclusions are made regarding the positive impact of financial decentralization on investment processes in the Dnipropetrovsk region. According to the analysis of financial decentralization of the Dnipropetrovsk region, the reforms led to an increase in local budgets and capital investments, an increase in the share of capital investment financing from the state and local budgets, and led the region to leadership in a number of UTC indicators. Thus, it can be argued that decentralization has had a positive impact on the Dnipropetrovsk region and contributed to the strengthening of its socio-economic processes and investment activity.