UDC 332.122.54:336.143; JEL H72, H77, R51
Burkynskyy, B. V., Storonyanska, I. Z., Horyachuk, V. F., Osypov, V. M., & Murzanovskyy, H. M. (2023). Shlyakhy udoskonalennya systemy byudzhetnoho vyrivnyuvannya v Ukrayini [Ways to improve the budget equalization system in Ukraine]. Rehional'na ekonomika - Regional Economy, 108 (2), 21-33. DOI: https://doi.org/10.36818/1562-0905-2023-2-2 [in Ukrainian].
Sources: 21

Authors



Burkynskyy Borys Volodymyrovych

Doctor of Economics, Professor, Academician of National Academy of Sciences of Ukraine, Honored Worker of Science and Technology of Ukraine

Deputy Chairman of the Southern Scientific Center of NAS of Ukraine and MES of Ukraine; Director of the Institute of Market and Economic & Ecological Researches of the National Academy of Sciences of Ukraine

Contacts: burkinskij@nas.gov.ua

Webpages:

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.ird@gmail.com, istoron@i.ua, (032)270-7043

Webpages:

Horyachuk Valeriy Fedorovych

Doctor of Economics, Senior Researcher

Senior Researcher of the Department of development of regional economic systems of the Institute of Market and Economic & Ecological Researches of the National Academy of Sciences of Ukraine; Professor of the Department of globalistics, European integration and national security governance of the Faculty of Public Administration of the Odesa Regional Institute for Public Administration of the National Academy for Public Administration under the President of Ukraine

Contacts: valeriygoryachuk@gmail.com

Webpages:

Osypov Volodymyr Mykolayovych

Doctor of Economics, Professor

Senior Researcher of the Department of development of regional economic systems of the Institute of Market and Economic & Ecological Researches of the National Academy of Sciences of Ukraine

Contacts: osipovugkonver@gmail.com

Webpages:

Murzanovskyy Hennadiy Modestovych

Postgraduate of the Department of development of regional economic systems of the Institute of Market and Economic & Ecological Researches of the National Academy of Sciences of Ukraine

Contacts: odessa.mgm@gmail.com

Webpages:

Resume

Under the conditions of the decentralization reform, the budget equalization system in Ukraine underwent significant changes, which took place in terms of the transition from vertical equalization of expenditures to horizontal equalization of revenues. Today, a mixed budget equalization system is being formed in Ukraine, with an emphasis on horizontal equalization of revenues and the use of separate tools for vertical equalization of expenditures. The main problems of budget equalization in Ukraine include the insufficient amount of own revenues of local budgets, the high level of dependence of local budgets on transfers from the state budget, the insufficient justification of the procedure for calculating the tax capacity indicator, the low level of financial autonomy of communities, the lack of a clear division of powers between state authorities and local governments, transfer of powers to the level of local government without adequate financial support, significant differentiation of regions by the level of socio-economic development. The problem of restoring the district level of local government is in a “frozen” state. The budget equalization system of Ukraine should be improved in terms of creating equal financial opportunities for access to public services. In the medium- and long-term perspective, it is advisable to strengthen the role of expenditure equalization tools, supplement the representative tax system with a number of taxes (property tax, single tax, excise duty), create an independent agency for periodic analysis of the state of the budget equalization system and develop proposals for its reform, restore the practice of using agreements on interregional development, agreements on regional development, and programs for overcoming the depressed state of the territory. The new equalization system should be based on state service standards. With the transition to medium-term planning of local budgets, it is necessary to ensure the stability and predictability of the volume of transfers to local authorities and the transparency of the order of their distribution.

Keywords:

budget equalization, local government, standards of public services, transfers, distribution of powers, differentiation of own revenues

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