UDC 336.14 (477.8)
Voznyak, H. V. (2014). Byudzhetni mekhanizmy pidtrymky rozvytku rehioniv v umovakh modernizatsiyi ekonomiky Ukrayiny [Budget mechanisms of support of regional development in conditions of modernization of Ukraine’s economy]. Rehional'na ekonomika - Regional Economy, 73(3), 205-216. [in Ukrainian].
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Authors

Resume

In the article the existing mechanisms of formation and implementation of the budget of regional development policy were reviewed. Their structural elements are determined and characteristics are presented. The state budget mechanisms of support of regional development which funding sources are state and local budgets. We consider the current problems of finding and accumulation of financial resources in the budget for regional development. The paper emphasis on subventions, state targeted programs, government guarantees and the State Regional Development Fund as a key budget support mechanisms of regional development.

It is proved that for the process of allocating subsidies is inherent «latent management from center», imperfect budget allocation procedure and excessive dispersion of subsidies; implementation of state programs of regional development is accompanied by lack of coordination of sectoral and regional institutions, and the use of funds of the State Regional Development Fund contains a number of shortcomings.

A number of recommendations on optimization of existing and search potential sources of the financial resources to ensure regional development is formulated. Thus, in the direction of improvement of the procedure of formation of funds of the State Regional Development Fund is advisable to establish an indicative amount of fund in policy documents of the government in the medium term with restraint adjustment of indicators no more than 10%, and the allocation of the fund is appropriate to use the index method of distribution that will ensure transparency of the procedure. In order to facilitate the flow of financial resources to the regions it is advisable to initiate the introduction of competitive selection procedure of proposals from local communities to obtain subsidies for social and economic development.

Prospects for further research in this area is the question of fiscal decentralization,   analytical research of budget mechanisms of regional development, which funding sources are local budgets.

Keywords:

budget mechanisms, regional development, state budget, local budgets, grants, targeted programs