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.
Decentralization processes taking place in Ukraine could not pass by such an important sector as transport, especially the road transport sub-sector. Currently reconsideration is needed both in the system of roads and in the system of their financing, so the present article gives a detailed insight of Ukrainian legal framework concerning those issues. Thus, funding and administration of the public roadways is performed by Ukravtodor and is excessively centralized, so there is a need for reform by passing local roads to regional level (under the present system - to the regional state administrations, and with possible amendments to the Constitution of Ukraine - to local governments). The article considers the system of road funding, which is currently effected from the budget (state and local) and from borrowed resources. The authors determine two stages of reforming the model of budget financing of transport and road infrastructure (the first stage (2008-2013), which began with the adoption of the Concept of Reforming the System of Administration of the Public Roadways and the second stage (2013-2018), which began with the adoption of Focus Program of public roads in 2013-2018), in which, the new scheme of road funding, except the budget and borrowed funds, will include a real application of the mechanisms of public-private partnerships, including concessions. The authors propose various improvements in the model of budget funding, which involve the creation of an effective State Road Fund, whose existence will be fixed in the Budget Code of Ukraine, with clearly defined and fixed sources of formation and direction of channeling funds. The article provides recommendations for improving the regulatory framework for the reform of the road sector.
During import substitution, the institutional structure was attributed to support for the industrialization process, production needs and investment for the development of large projects. In the 1970s, once the industrialization phase had been consolidated, highly specialized sectoral institutions prevailed, providing solutions to new management requirements for scientific personnel and supporting critical industrial sectors – electric and nuclear energy, oil and water – at the same time driving the scientific and technological activities schedule within national institutions. Government policies were important in order to carry out specific projects, considering both the operational and financial aspects. Liberalization policies, privatization of public enterprises and public subsidy to support demand for technological services have modified the modes of linkages and interaction between production system and institutions. During the 1980s and 1990s new institutions appeared and the older ones changed their activities and organizational configuration. Given this, particular attention is dedicated in the present chapter to the bridging institutions. These institutions are dedicated to support services for firms and other institutions (such as standardization, quality and certification, particularly to SMEs) and the reinforcement of inter-management activities. Bridging institutions have several origins, and financing can be public, private or mixed. The analysis is also devoted to the role played by the SEP-CONACYT Centres, a research system formed by different specialized institutions and decentralized in different regions of the country. Its regional distribution and linkages with a high heterogeneity of firms contribute to shape a specific intermediate structure supporting the innovation process. Within this institutional framework, our principal interest is the nature of networks that have been created and the features of the linkages generated by institutions and firms.
In the course of financing of innovative industrial clusters, it is the informational move that investors finance enterprises or projects. Investors have difference in priori probabilities, which will lead to the diversity of opinion among investors. The degree of the diversity has determined investors choose to take decentralized action or collective action. The difference of market finance and intermediated finance in reducing the cost of collecting and processing information determines that the difference of the performance in financing of innovative industrial clusters among different methods of financing.
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)
The financial decentralization is an essential component part for the political, administrative and economic decentralization process, with major involvement on the economic and social system in Romania. Although the authorities of the local public administration in Romania were authorised to ensure the local communities the services provided by law and even to involve in the economic-social development of the towns and communes, in fact they have never had enough financial sources from the state budget or from the local budgets. The local budgets represent the planning and management tools of the financial activity of the territorial-administrative units. Their structure reflects the autonomy level of the local administration towards the central level and the links existing between the different territorial administrations. Also, the local budgets reflect the flows of incomes formation and the expenses of the local administrations, the method of financing the expenses on destinations and the deficits covering. The local authorities must access external aid programs, in order to be able to achieve the investigation works related to the commune infrastructure, due to the fact that the local incomes are insufficient to achieve investigations works from their own sources. In this context, the present paper proposes to highlight the characteristics of the budget process within the local public administration in the rural sector area.
Cătălina Liliana Andrei, BOGDAN OANCEA, TUDOREL ANDREI
Reforming the public health system is a complex and long process, involving different categories of people. To accelerate the process of integration into the European Union, Romania is currently implementing strategies and programs aimed to increase the quality of public services. In the medical field a series of measures have been undertaken aimed at accelerating the decentralization process and optimize the activities of medical institutions. During the transition period a series of measures have been taken to decentralization and privatization of health services. However, currently we are witnessing a fragmentation of the system, which stressed the inequality in the distribution of medical personnel and reduced people's access to certain types of medical services. Please note that the number of doctors per capita in rural areas is only 20% of the urban area. Another major shortcoming of the system is linked to the financing system and its correlation with the strategies of decentralization. Frequently, decentralization has emerged as a way of placing the central tasks in the task of local government. Using panel data from developing regions we highlight a number of implications of the decentralization process.
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.
The aim of the paper is to conduct a research on an impact of blockchain technology platform on the financial sector through cryptocurrency, and an impact on other industries.. The subject of research is not only this technology but also its commercial exploitation. In order to understand the platform, the starting point of this research is an analysis of how the technology functions, after that the advantages for business and economic transaction are identified, and finally the paper deals with an impact of new technology on business, above all on financial operations. The basic hypothesis is that blockchain has achieved a great impact on financial sector, also it has the potential to radically change only the financial sector but also the way we buy and sell, our interaction with the authorities as a way of verifying the ownership from the authorship and the organic food production. Using the available data and synthesis of knowledge from the fields of technology, economics, finance, and politics, 4 scenarios were set up for the future of underlying technology. The scenario approach combined with trend analysis in order to prove the starting hypothesis with high reliability. The research results show that the technology being investigated already has a profound impact on the financial sector, that it is in the initial phase of changing many industries, with the likelihood that they will change them significantly in the next five to ten years. Businesses increasingly discover the power of this technology to exploit the benefits of the Fourth Technological Revolution.
(1) As it is shown in the answering rate itself, concern of top management on the rationalization of business finance is very sincere. (2) As for depreciation system, contraction of depreciation terms and general or partial widening of the rooms for arbitrary depreciation are earnestly desired. (3) Corporate tax has been intensely criticized, and opinion of the majority takes its revision as a premise for financial rationalization. (4) Regarding budget system, opinion of the majority asserts concentrative management, but not a few recognize the necessity of decentralized system. (5) Upon internal audit and concept of cost, a fundamental shift from the traditional idea is fairly evident.