ТЕНДЕНЦІЇ ТА ПЕРСПЕКТИВИ МОДЕРНІЗАЦІЇ СИСТЕМИ ВИКОНАННЯ МІСЦЕВИХ БЮДЖЕТІВ УКРАЇНИ В УМОВАХ ДЕЦЕНТРАЛІЗАЦІЇ

Abstract

The main tendencies of development of the system of local budgets implementation in Ukraine in the conditions of decentralization of public administration are investigated. The emphasis is put on changing the approach to the role of the local budget in the context of systemic administrative transformations, its importance in ensuring the acceleration of sustainable self-development of territories.Important criteria for local budget expenditures efficiency measurement is the achievement of the balanced ratio of own funds and transfers provided from the state budget. The analysis of the structure of the revenue part of the local budgets of Ukraine shows that the revenues are not usually diversified, and the main part of tax revenues is formed by the only one type of income – the personal income tax. Accordingly, local taxes do not act as an effective fiscal instrument of public management. In the structure of non-tax revenues of local budgets of Ukraine, the largest part is accounted for by specialized fiscal institutions, but it is decreasing now. The second place belongs to administrative fees and payments, the share of which, according to the results of 2018, has shown as a tendency of growth. Obviously, it is necessary for Ukraine not only to improve the system of inter-budgetary relations, but also to realize that the whole system of budget relations should be guided by the implementation of the totality of interests of the state, business and citizen, not by the goal of the management apparatus maintenance. After all, it is the citizen with his natural business initiative and desire for self-development and realization could be the basis and the driving force for the development of the state. Although the first steps in reforming the budget sphere have already been made and the revenue base of local budgets has been expanded, but for a successful solution to the problem of providing Ukrainian communities with a sufficient amount of financial resources, it is not necessary to subsidize the territories of the state directly, but it is needed to create a favorable investment climate for encouraging and supporting the natural processes of community self-development.Accordingly, important priorities for the formation of a proper financial base for self-governing bodies should be the clear division of powers between central and local governments, the search for sustainable sources of local budget revenues, their income base, improvement of redistributive processes in the budget system, and the use of budgeting methods focused on social effect and economic result obtaining in the long-term perspective.Conclusions show the existence of budget imbalances caused, in particular, by poorly financial management, low level of economic activity and its effectiveness in communities. Prospects for improving this system which are seen in the implementation of administrative measures are given. These are: standardization of public services and the formation of a transparent organizational and economic mechanism for their providing; investing budget funds in the sectoral development of the local economy; appropriate diversification of sources of budget revenues; monitoring of budget implementing; development of the program-targeted method of using local budget funds on the basis of long-term planning; providing the ‘executive quality standards’ that will reflect the quality of local government, determine the quality and quantity of services provided; strengthening of the ‘managerialism’ in the budget management (professional development of employees of financial institutions, personal responsibility and motivation, orientation to the result); budget digitalization for ensuring absolute transparency and simplifying public control.Finally, in order to solve successfully the problem of providing the territorial communities with sufficient financial resources, proper internal financial and economic management, aimed at creating a favorable business and investment climate in the communities, we should abandon the practice of direct subsidization of territories, focusing attention on the local ‘points of growth’ and their needs.