Subject of research is fiscal decentralization. The goal of this research paper is the analysis of the dynamics and status of fiscal decentralization. Methods which were used in course of research: generalization, comparative analysis method, statistical method and other methods. Study results. Characterized and analyzed Application of results: Ministry of Finance of Ukraine, the Verkhovna Rada of Ukraine. Conclusions. Decentralization in terms of expansion of powers at the local level leads to high efficiency of public administration at the lowest level, and to improve the efficiency and quality of public services. But the significant transfer of powers and functions from state to local levels without adequate financial security can lead to negative financial results. It is therefore particularly important is finding the optimum between the volume of granted powers, and their support by adequate financial resources.
Introduction. Asymmetry of economic development and banking systems updates the necessity for the development of conceptual principles of the regional policy of the banking system of Ukraine through the prism of subsidiarity of national and regional levels. Меthods. Theories of Regional Studies, Finance, Credit theory, theory of state regulation of the economy, spacial development, labor, domestic and foreign scholars on the formulation and implementation of regional policy in the field of banking, abstract and logical, historical, empirical methods of observation and comparison were widely used in the research. Results. It was scientifically grounded the necessity of regional banking system on decentralization principles and subsidiarity distinguishing benefits of development in the economic, social and ideological spheres. New methodical approach in determining the degree of regionalization of the banking system was proposed. Discussion. Further development of regional banking systems is carried out through the development of conceptual bases of the regional policy perspective formation, taking into account the importance of stabilization and modernization breakthrough in providing credit and investment support economic development regions. Further research in this area should be based on the reform of administrative and territorial structure, decentralization of power and transformation functions of the banking system at the national and regional levels.
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.
С. А. Корольков, Alexander G. Losev, Vasily V. Tarakanov
This publication belongs to case category. The main task of the research is to formulate methods and algorithms of financial analysis and teaching process management at the university. It suggests designing financial mathematical model of budget financing for university structural units on the basis of teaching and financial plans of teaching programs. This model is based on per capita financing of educational institutions acting upon state order. The authors of the article have already designed and presented practical implementation of original algorithms for forming salary funds for lecturers from the chairs. The article presents the main principles of the model analyzing main outcomes of its implementation and formulates possible challenges and ways of solving then. There has been a significant economic effect of introducing the model, absence of legal limitations for its implementation, perspectives of its development in the field of prognosticating university structural units’ financial position, implementing effective contracts, network form of training and individual educational trajectories. Developed method of budgeting for structural units can be used at any university on the basis of curricula analysis and making teaching and financial plans. Its implementation eliminates discrepancies between principles of business support of educational activities in general and its individual structures (chairs); creates an opportunity for calculating the costs of curriculum modules and components; improves efficacy of teaching process organization; formation of financial mechanism for implementing individual educational trajectories by the students and network forms of training, basic chairs functioning, decentralization of financial and economic management and creation of prerequisites for acknowledging a chair as the center of financial responsibility. The model is original and is in fact a natural continuation of per capita financing of university educational activities.
The article highlights the essence of budgetary control. The features of control in the public sector performance are grounded as well as the relationship between verifiability and the controllability. It is proved that the achievement of public finance management needs its controllability. There is no alternative verifiability by ensuring controllability of budget resources. The classification criteria of budgetary control types according to the different classification criteria are developed. It has allowed to distinguish its following types: scheduled, unscheduled, previous, current, next, state, municipal, specialized, departmental, public, external, internal, solid, selective, comprehensive, effective, ineffective, centralized, decentralized, legislative, realizable, further, active, passive, available, projected, intermediate, final, mixed. The purpose of the article is to provide a classification criteria of budgetary control development, taking into account the role and functions of control in public finance management. The subject of the study is a set of financial relationships arising during the budgetary control due to appropriation of financial resources. Methodology. The following methods have been used in the process of writing: cognition, induction, deduction, analysis and synthesis. Results of the survey. Thus, the main directions of budgetary control implementation we can consider the following ones: monitoring compliance with procedures for preparation, review and approval of state and local budgets; the implementation of revenue and expenditure of the budget at the national and local levels control; detection of theft of public funds, as well as their misuse; accuracy of accounting control; increasing the revenue base of the state budget detection; preventive measures to combat corruption and bribery in the public sector. The author’s approach to classification criteria of budgetary control types, unlike existing ones considers budgetary control as a complex in all its manifestations. It allows implementing budgetary control in full and at all stages of the budget process. It will significantly increase its efficiency and effectiveness. Value/originality is specified in the following items. Classification of budgetary control, which differs from previous approaches in more detail and grouping features has been improved according to: the degree of planning and subordination:, control entities, stages of implementation, level of activity, time direction, nature of action, implementation and assessment according to the timing, forms of implementation, the scope that makes more effective budgetary financial management control.
Issues of crypto currencies usage in international and domestic financial systems are considered in thearticle. Detailed review of crypto currency stages development in Ukraine and abroad was provided.Analysis of crypto currency nature was made. It was paid attention to the description of basic kinds ofcrypto currencies and specifications of their usage. Process of crypto currency implementation infinancial system of Ukraine was reviewed
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.
The article deals with the main problems of financing current expenses on environmental protection. The main trends of current expenses on environmental protection have been analyzed. The priority directions to increase the amount of financing current expenses on environmental protection under the conditions of power decentralization and local governance reform have been revealed.
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 article is dedicated to critical analysis of competitive conceptual approaches to determining the essence of financial system. The system establishing element of the financial system resource concept is understanding finance as economic relations of formation, allocation and use of financial resource funds with the purpose of performing functions and tasks of the state/company and provision of conditions for expanded reproduction. According to this approach, the notion «financial system» is further determination of finance and shall be interpreted as the totality of relatively separated but mutually related spheres and links of relations, in the process of which centralized and decentralized financial resource funds are created and used. The institutional concept of the financial system considers finance as a social institution that organizes determined ways of interactions between individuals or their separate groups in the society. Its target purpose is to minimize transaction expenses arising at exchange of binding requirements for real resources in the economy. Under this approach, the financial system is understood as an aggregate of means — financial institutions and markets — which result from the evolution of social contracts and with the help of which intertime decisions and interactions are fulfilled and coordination of savings and investments in the economy is performed. The article shows that the alternative theoretical models of financial system contain structural elements heterogeneous by content and nature of interrelations, with various properties. The differences between them concern methodological approach to distinguishing qualitative signs which determine the essential nature and structure of the financial system; mechanism of formation and functioning of financial relations; nature of distribution and scheme of financial resources flow; the nature of functions of the financial system in the economic environment; special mechanism of effect of the financial system upon the economic system. Considering the theoretical and methodological differences between the resource and institutional concepts of the financial system, the author offers to divide them into two theoretical models — financial system concept and the concept of the system of finance
In this article an attempt of analysis of peculiarities of the market of crypto currency is carried out, peculiarities of peer payment systems such as Bitcoin, Namecoin, Litecoin, PPCoin, Novacoin are analyzed. Attitude to crypto currency in the modern world is ambiguous, due to the pseudo anonymity of crypto currency the use of crypto currency may have fraudulent schemes, may be used for financing shadow sector, including terrorism and drug trafficking. Author explores possible links of crypto currency and shadow economy, highlights the main distinguishing characteristics of crypto currency and payment schemes with their use, the analysis of pros and cons of presence of competitive money in the economic cycle of the country is carried out.
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.
In spite of the fact that a lot of virtual currencies have been created in recent years, bitcoin is the best known from all of them and regularly reported in the news. Currency without identified creator is appreciated by its user for non-centralized running, without any chance of governments to influence the money supply. The advantages of bitcoin, such as very quick payments worldwide, stop of inflations caused by governments trying to solve their own problems or high level of transactions privacy are widely mentioned. The aim of the article is not to describe the technical issue of bitcoin and explain how this system works, because it has been widely explained in other articles. The aim is focusing on economic aspects of bitcoin, the technical aspects are mentioned only if necessary. For accomplishing the aim the article is split in three parts. The first part is dedicated to answering the question ?What is bitcoin??. It examines whether bitcoin complies with theoretical, empirical and law definition of money. The law definition of money compliance is done for Czech, German and EU law in general, but attitudes of US and Chinese governments are also mentioned. According to the findings, bitcoin cannot be easily considered as money. The second part is focused on monetary aspects of bitcoin. It analyses the question, ?What would mean for an economy to accept bitcoin as legal tender??. In the case of single economy the money supply would be completely out of control of government and due to easy way of bitcoin transferring, money supply could be increased and decreased quickly. In the case of global economy, deflation and its impacts would be inevitable. The third part concentrates on bitcoin banking. No possibility of bitcoin lending does not mean the end of banking industry, but would probably lead to a significant change in how it works.
A relatively new phenomenon is the appearance of cryptocurrencies with bitcoins as their most prominent representative. In this article, the author discusses the VAT aspects of the use, exchange and mining of bitcoins under the EU VAT system.
Housing finance is both the servant and the master of the housing process. The finance available fits into the general policy framework in that it enables the construction of housing within the wider supply context current at the time. It also drives the process: reductions in finance affect the scale of supply and allocation among groups supplying and demanding housing. In times when centralized control is politically dominant, finance is likely to be directed at governments and their agencies. Decentralization directs finance to smaller units, concentrating more on local authorities than on central governments. In times when nongovernmental organizations (NGOs) are trusted above governments, shelter finance will be channelled through them. The same occurs when citizen groups gain power and respect.
Cieľom predkladaného článku je definovať základné podmienky finančnej stability a analyzovať možné hrozby novej experimentálnej virtuálnej meny bitcoin na finančnú stabilitu. Úlohou príspevku je definovať oblasti a faktory, v ktorých táto nová virtuálna mena môže potenciálne spôsobovať finančnú nestabilitu.
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)