Purpose. The aim of the article is the study of the content of the functioning of local finances, the analysis of the main challenges and crisis phenomena arising in the field of local budgets in the conditions of the martial law of Ukraine. Methodology of research. The research was conducted using a dialectical approach to studying the current state of development of the content of local finances and financing the needs of local budgets. General scientific and special methods were used, in particular: analysis, synthesis, induction, deduction and generalization – to develop the provisions of the theory and practice of the content of local finances; monographic – when studying literary sources on issues of the content of local finances; epistemological – to clarify and deepen the content of the category "local finances"; system and analytical – when processing the information received regarding the financing of the needs of local budgets; abstract and logical – for formulating the conclusions of the study. Findings. A study of the theoretical foundations of the category "local finances" was conducted. The peculiarities of their use in the context of budgetary decentralization of territorial communities were identified. An analysis of the financing needs of local budgets under martial law was conducted. An assessment of the dynamics of revenues and expenditures of local budgets of Ukraine was carried out. The main problems of local budgets were identified. Originality. A review of literary sources was carried out to clarify the meaning of the concept of "local finances", which made it possible to offer a new understanding for optimizing the budgetary decentralization of territorial communities. Prospects for the development of financing of local budgets of Ukraine in the conditions of martial law are offered. Practical value. The obtained results of the study will contribute to increasing the effectiveness of the formation and development of financing of local budgets of Ukraine in the conditions of martial law. Key words: local finances, budget decentralization, territorial communities, local budgets, budget revenues and expenditures.
Ensuring economic growth is a necessary condition for the successful socio-economic development of the country as a whole. This requires the activation of the role of public finance and public investment for the development and activation of processes in local self-government bodies, the state and local business as a key factor that determines the dynamics of capital in the economy and has an impact on the pace and nature of economic growth. At the same time, public investment can be considered as a management tool for promoting sustainable development. In conditions of socioeconomic instability, public finances are an important component of the financial system, which cannot adapt to changes automatically. The inertia of public finances generates additional risks notonly for the resource provision of the state's functioning, but also leads to a number of negative phenomena of a macroeconomic and social nature. Under these conditions, the budget is not only an important instrument of the state, through which monitoring of the state of public production and provision of social guarantees to the population is ensured, but also stabilization of the financial system as a whole is carried out. The article proves that an important determinant of socio-economic development of regions is financial decentralization, which contributes, on the one hand, to reducing the role of the state in their financial support, and on the other hand, creates opportunities for strengthening the autonomy of local budgets. The article substantiates the main methods of attracting public investment in the region, namely: regulatory and legal support; allocation of priorities for the selection of investment projects; definition and use of mechanisms for supporting investment activity; development of an investment passport; creation of a separate investment promotion service. A comprehensive analysis of the current state of the public finance system makes it possible to derive some limitations and criteria for the organization of relations between the fiscal and monetary systems in the context of current tasks of socio-economic development
Martina Halásková, Renata Halásková, Beáta Gavurová, Matúš Kubák
Services are a dynamically developing economic sector in all countries. The paper focuses on public services, evaluated from the perspective of fiscal decentralization. It aims to evaluate the level of fiscal decentralization of expenditures in selected categories of public services in European countries. For this purpose, government expenditures by the local government sector are analyzed in the set of the selected 28 European countries in the period 2010-2018. Cluster analysis has been carried out in order to determine four clusters of countries based on their level of decentralization of expenditures on services. The results show differences in the extent of decentralization between the European countries in the provision of specific public services and reflect the form of financing of local public needs. A low level of fiscal decentralization of expenditures on services (public order and safety; housing and community amenities; recreation, culture, and religion) was observed in the majority of the countries. However, the majority of the countries failed to prove a high level of fiscal decentralization of expenditures on services (social protection, health, education) and a medium level of decentralization of expenditures in terms of general public services and services of economic affairs. These findings demonstrate that the degree of decentralization of public services is determined, to a certain degree, determined by country history and its geographical location, as well as by the different roles of sector-specific public policies. The findings can be helpful for creators of local public policies, strategic plans, and financial concepts.
The effectiveness of education funding in Ukraine in general and vocational education and training in particular is analyzed in the study. It is proved that Ukraine has disparities between market needs in certain specialties and the number of graduates. The needs in blue collar workers have resulted in the decline in vocational schools number and their graduates. According to the analysis of the structure and sources of education and VET financing in Ukraine, it has been proved, that positive results of education decentralization and educational services financing can be assured by raising additional resources. It has been shown that additional income to finance vocational education and training is available to local budgets through the investment of temporarily free funds in deposit accounts and application of stock market instruments. The proposed mechanisms are efficient if they are used in the process of local councils' financial resource management in the short and long term.
The paper deals with the experience of reforms of local self-government and administrative and territorial structure in Latvia after its independence was restored. The following components and directions of reform are systematically and elementally studied: organizational and structural aspect; functional transformations; restructuring of the framework of interaction with the central government; problems of financing of powers and formation of local budgets; administrative and territorial division reform; regional development programs; accountability and state supervision. Conclusions have been drawn regarding the feasibility and expediency of using the experience of Latvian local self-government reforms in the context of finalization of the decentralization reform in Ukraine and further reforms in this sector.
Relevance of the topic. Over the past four years, cryptocurrency as means of alternative payment have increased significantly, the successful market capitalization of the bitcoin, which currently stands at 138,237,195,020 EUR, indicates that the cryptocurrency can be considered an addition to 21 century financial instruments. Despite the unstable value of the cryptocurrency, bitcoin serves as a gateway between the financial markets of cryptocurrencies and the usual financial market for us. In this regard, at the moment there is a tendency to carry out transactions for movable or immovable property using cryptocurrency to reduce the number of taxes. And to rapidly transform financial asset types. A Cryptocurrencies come with secured layer of anonymity, decentralization of financial assets and without controlling authorities. Thus, crimes become more innovative and making investigation process more complicating. The thesis includes existing enterprises that have introduced cryptocurrency as a method of payment, as well as a possible scenario where the financing of political parties and organizations is made using cryptocurrency, allowing illegally exceed the permitted funding. The risks of malicious insolvency are considered. The thesis deals with the insolvency process, which was considered in the arbitration court of the Russian Federation in thesis the conclusion part has comparison between the jurisprudence relating to cryptocurrency in the Republic of Latvia and the Republic of Lithuania. The results of the study led to the following conclusions: despite the decisions of the court of justice of the European Union, supervising financial institutions need to develop means of controlling the cryptocurrency to reduce the illegal political party, the legalization of funds obtained by criminal means, and other processes that allow individuals to hide the true volume and purpose of financial transactions.
Local government and decentralization are the main challenges of the Albanian government reforms. Decentralization and urbanization are a greater pressure on local governments to finance public services and facilitate economic development. During the years, the local government responsibilities have been increased, while fiscal decentralization and transfer of funds have not progressed with the same speed, resulting in significant lack of funding. Local government budgets are generally small and cannot afford financing for major projects and infrastructure improvements. Funds from the state budget for infrastructure investments (mainly competitive grants/Regional Development Fund) have been increasing in recent years, their impact is still small compared to the needs. The main forms of financing of local government are: central government transfers and its own revenues. Vertical and horizontal transfer between different levels of governments (CG and LG) that takes place during the annual budget cycle is not based on clearly defined criteria and in a transparent way, or does not match the needs for expenditures at the local level. This creates a considerable level of instability (illogical movement) of revenues and expenses during the budget cycle units, as a result created a high degree of unpredictability of revenue and expenditure of local units.Currently, local government units funded from central government about 60 percent of local budget, which shows the low level of local autonomy. These and the other problems have made necessary by the territorial reorganization and together with the performance of a deep fiscal decentralization.This article through studding the local decentralization in the last years aims also to make a comparison to previous years and since 20016 is the first year of the complete implementation of the new Administrative and Territorial Reform and the transfer of certain new functions to the local government as well. Keywords : Local government, local finances, transfers conditional, unconditional transfers, their income, responsibility, decentralization, Administrative and Territorial Reform, funding sources etc.
The aims of this article are to describe the fundamental connection between State government, counties and municipalities and to expose peculiarities of interaction of State government subjects and Local Self-government institutions. The survey method is grounded on the systemic research and analysis of the Lithuanian legal acts: Law on the Local Self-government, Law on the Governing of the County and Law on the Regional Development. The main conclusions of the article are following: a) the objects, functions and responsibility of Regional institutions and Counties are separated by legal acts, but in fact Regional institutions and Counties are indivisible unit; b) in reality municipalities become subordinate to the State government and restraint from Self-government institutions appreciable by limited liberty of decision making and finance resources, and intensive state inspection of procedures; c) there is not fully realized principle of decentralization. In the future State government system and Local Self-government reforms could take the way of self-governmental regions making and the power, functions and decision making competence of municipalities could be extended.