Abstract

This paper highlights the foreign expertise of the budgetary process development at the local level. It states that the armed aggression of the Russian Federation resulted in significant damage to the economy of Ukraine, affecting thus the development of the budgetary process. Modern scholars studying the domestic budgetary process, including its local dimension, are listed.
 The aim of the research is to perform a critical review of the foreign experience regarding the budgetary process development at local level.
 This paper highlights the concept of the budgetary process in Ukraine, the essentials of its five stages, the reasons for the low quality of the budgetary process in Ukraine, the core principles being followed in the European Union states in the process of securing selected tax revenues for local self-government bodies, essential factors determining the possibility to assign certain taxes within the local category, the main characteristics of the local budgets’ revenue share establishment in developed Western countries, distinguishing these from domestic practice. It is emphasized that for all developed foreign states division of local budgets into local operational (administrative) budget and local development budget (investment budget) is typical. It is stressed that the main focus of budgetary policy in the countries of Central and Eastern Europe was placed on decreasing the amount of transfers and taking parallel measures to raise the share of tax revenues, ensuring the establishment of self-sufficient and financially capable territorial communities. Аuthor paid special attention to research of budgetary process specificity in Germany, United Kingdom and France.
 The conclusions contain a statement for the budgetary process of any country to be characterized by certain features reflecting the specificity of national economy regulation, the structure of domestic production and means of influencing the development of the financial system. Modern global trends are characterized by the increasing importance of decentralization in the organization of local financial systems and changes in budgetary processes at the local level.

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