UDC 336:332.1:338.24.021.8
Storonyanska, I. Z., & Pelehatyy, A. O. (2014). Finansove zabezpechennya rozvytku terytorial'nykh hromad u konteksti administratyvno-terytorial'noyi reformy [Financial support of the development of local communities in the context of the administrative-territorial reform]. Rehional'na ekonomika - Regional Economy, 73(3), 228-238. [in Ukrainian].
Sources: 4

Authors



Kyrych Nataliya Bohdanivna

Doctor of Economics, Professor

Head of the Department of management in production of the Faculty of Economics and Management of the Ternopil Ivan Pulyuy National Technical University

Webpages:

Resume

The main obstacles to achieve efficiency in financial provision of local communities development namely the discrepancy in the revenue base of local budgets and assigned goals to improve their financial capacity; lack of incentives for efficient use their own financial capacity; differentiation of local communities in terms of budgetary provision; vertical and horizontal imbalances in local budgets in the region; negligible expenditures of local budgets on development of territories; imperfect mechanism of payments of the State Treasury budget that are carried out ??by local authorities.

The structure of revenues of local budgets of Lviv Oblast, in 2001-2013 рр. is investigated. Conclusions are done that paternalistic expectations at the local level are caused by the application of the principle of «according to needs» while targeting state transfers for financing the existing network of budgetary institutions without estimation of expediency and effectiveness of social functioningas well as lack of real impact of local government on tax base, rates, rules of administration, that are defined at the central level.

The basic concepts of financial sustainability of local communities are defined, which include: strengthening the financial independence of local communities and regions of local budgets; rejection of the paternalistic model of relations between the center and the regions and stimulation of an effective use their own financial capacity of local communities; ensure the effectiveness of intergovernmental relations; increase of the volume of investment-related expenditure.

Steps proposed by Government of Ukraine regarding changes in tax system and intergovernmental relations aimed at decentralization of public finances are considered. The necessity of achieving financial capacity of local communities that will ensure the transfer of basic weight of management process on the local level is explained. The volume of increase of non-budgetary financial resources that will affect the increase of investment activity of local community is proposed. Was determined that the achievement of financial independence is impossible without transformation of local communities to the beneficial owners of public property, including forests and lands. Priorities for Parliament, which will create the foundation for of more qualitative and development planning are identified.

Keywords:

financial support of local communities, administrative-territorial reform, intergovernmental transfers, decentralization, local finances