Scientific and practical journal
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Regional Economy
   



Journal Regional Economy -- re2017.04.005

UDC 332.012.33:334.012.74; JEL Н10, Н70, R12
Storonyanska, I. Z., & Patytska, Kh. O. (2017). Problemy ta napryamy optymizatsiyi protsesu formuvannya OTH: za rezul'tatamy pershoho etapu administratyvno-finansovoyi detsentralizatsiyi [Problems and directions of optimization of the UTC forming process: according to the results of the first stage of administrative and financial decentralization]. Rehional'na ekonomika - Regional Economy, 86(4), 5-13. [in Ukrainian].
Sources: 13

Authors



Storonyanska Iryna Zenoviyivna

Doctor of Economics, Professor

Deputy Director for Scientific Work, Head of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: istoron@i.ua, ird_kozoriz@i.ua, (032)270-7043

Webpages:



Patytska Khrystyna Olehivna

Ph.D. of Economics

Researcher of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: pelechata@meta.ua

Webpages:

Resume

The article presents the study of the fiscal decentralization process in Ukraine at the level of local governance defined by this reform as basic – the level of newly formed UTC in terms of the first results, risks and challenges that occur in modern conditions. The features of administrative and territorial reform in Ukraine in the past and at present are researched. The position of communities’ forming in the reform of administrative and territorial structure of Ukraine is investigated. Amendments to the Budget Code of Ukraine and the Tax Code of Ukraine in the context of the administrative-territorial reform and the reform of fiscal decentralization are analyzed. The necessity of understanding the role and place of local communities in the development of local government is argued. The place and role of cities of oblast significance in the process of implementing the reform of the administrative-territorial system are determined. The notions of «urban agglomeration» are analyzed in the context of existing administrative territorial system. A conclusion is made that, despite lack of changes in the effective legal framework toward improvement of the administrative territorial system and absence of any proper agglomeration act, territorial communities must seek horizontal cooperation for the sake of their economic development and competitiveness. The measures to improve the territorial financial ability to implement the responsibilities granted to local government in the context of changes of administrative-territorial structure are proposed. The ways of strengthening the financial autonomy of municipalities are grounded. The necessity of achieving financial viability in order to accomplish the basic functions conferred on local authorities by the state is grounded. It is shown that the legislative innovations are not able to ensure decentralization. It is concluded that the community development at the local level is possible only when the correct public and local government policies are formed, basing on the fiscal capacity of communities.

Keywords:

united territorial community (UTC), city of oblast significance, agglomeration, financial capacity, administrative and financial decentralization

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Repository of Institute of Regional Research UDC [336.14:352]:336.22; JEL E62, H22, H70
Patytska, H. O. (2017). Osoblyvosti formuvannya podatkovykh dokhodiv mistsevykh byudzhetiv v umovakh finansovoyi detsentralizatsiyi [Forming features for tax revenues of local budgets in terms of financial decentralisation]. Rehional'na ekonomika - Regional Economy, 83(1), 53-62. [in Ukrainian].
Sources: 9 

In this scientific article the composition of tax revenues in local budgets is determined. Problems of the comprehensive characteristic of tax revenues categories are diagnosed. The position of communities’ funding in the reform of administrative and territorial structure of Ukraine is investigated. Problems of providing the local communities with financial resources in the process of the territorial development are diagnosed. The ways of strengthening the financial autonomy of municipalities are grounded. The basic changes in taxation of communities concerned with the reform of local government are studied. Amendments to the Budget Code of Ukraine and the Tax Code of Ukraine in the context of the administrative-territorial reform and the reform of fiscal decentralization are analyzed. The necessity of understanding the role and place of local communities in the development of local government is argued. The place and role of providing taxes to local budgets in forming the economic and financial potential of the area are investigated. The basic tools of tax revenues formation to local budgets are defined. The interdependence between the formation of tax payments and the level of economic development of the respective administrative-territorial unit is proved. Sources of the tax revenues to local budgets and their focus on supporting the budget expenditures are shown. As part of the major sources of the budget revenues the tax on economic activity, personal income tax, consumption of public goods taxation, property tax and the use of natural resources taxation are determined. The place and role of each tax payment in financial resources of local budgets forming is analyzed. It is determined that all incomes are included to the general fund of the local budgets. Accordingly, we are not talking about their targeted use to support certain budget expenditure. The priority of formation of the expenditure policies of local governments is proved. The basic factors that influence the mobilization of revenues from taxation are analyzed, such as: the number and potential of business entities development, the level of the shadow sector extent, investment attractiveness. The necessity of achieving financial viability in order to accomplish the basic functions conferred on local authorities by the state is grounded. It is proved that the income tax is a leader in formation of financial resources of local budgets. The role of local taxes and fees in the system of tax payments to local budgets is determined. It is shown that the legislative innovations are not able to ensure decentralization. Changes to the determination and administration of tax payments to local budgets are proposed. Attention is paid to insufficient tax revenues in the financial resources of local governments. It is concluded that the community development at the local level is possible only when the correct public and local government policies are formed, basing on the fiscal capacity of communities. 
tax revenues of the local budgets, tax viability, sources of tax revenues 


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