UDC 336.14:354:332
Benovska, L. Y. (2015). Problemy finansuvannya vydatkiv mistsevykh byudzhetiv u konteksti byudzhetno-podatkovoyi detsentralizatsiyi [The problems of financing of the expenditures of the local budgets in the context of fiscal decentralization]. Rehional'na ekonomika - Regional Economy, 75(1), 87-95. [in Ukrainian].
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Resume

Financing of the expenditures of the local budgets in Ukraine is connected with a number of problems: on the one hand, there are problems of low financial capability of the local budgets through an underdevelopment of local taxation, insecurity by a sufficient amount of budget funds delegated by the state powers to the local governments and a blurred delimitation of powers between the state power and the local government. On the other hand, there is a low efficiency of using funds of the local budgets, which is shown up in the imbalance of the expenditures of the local budgets and needs the optimization and improvement of the structure of the expenditures. The purpose of the article is to clarify the main issues of financing the expenditures of the local budgets and their solutions in the context of conduction of fiscal decentralization. The problems of financing of the expenditures of the local budgets is connected with a low financial soundness of the local budgets and low efficiency of expenditures, which is shown up in the existence of a significant discrepancy between a general economic development and an increase of social expenditures of the budgets; an inefficient structure of expenditures through the relaxation of the investment component; an existence of baseless network of institutions and outdated methodological approaches to financing expenditures; problems of cash service of the expenditures. Changes in budgetary politics of the state towards the provision of decentralization of financial resources, which are fixed from 2015 in Budget and Tax Codes, although promote better filling of the local budgets, however will not be able to improve the structure of their expenditures and will negatively affect the formation of budget development. Positive steps of innovations is an introduction of subsidies from the state budget for education and health care, which makes these expenditure items more predictable and gives local authorities an incentive to save money; a transition in the intergovernmental relations from the system of balancing to the system of equalisation, which will interest local authorities to draw additional earnings and to expand the existing tax base; a removal of ban for reorganization and closure of educational and health care institutions, which allows to make real steps to optimization of the network. However, the proposed measures of fiscal decentralization require detailed miscount in the directions of correspondence between an increase of revenues by innovations and amounts of expenditures necessary for performing the increase of amounts of the delegated powers for the budgets of different levels. Particular attention should be paid to the formation of the budget development by a legislative fixing of those sources of its formation, which provide real earnings.

Keywords:

local budgets, financial resources, expenditures, decentralization, structure of expenditures