Abstract
Abstract. Given the reform of state policy in the field of culture and the implementation of sustainable development strategy in Ukraine, there is a need to analyse the state of budgetary providing in this area in the regional context. The purpose is to determine the peculiarities of state budgeting of the cultural sphere at subnational level and to substantiate practical recommendations for improving its financing in the context of implementing the strategy of sustainable development of the Ukrainian economy. Such scientific and methodological tools as induction and deduction, comparison, synthesis, factor analysis by the method of principal components and econometric modelling are used. In 2003—2018, the tendencies of changes of local budgets expenditures on the sphere of culture in Ukraine are estimated. The author has determined that the dynamics of local budget expenditures on culture and art was fluctuating, but due to the implementation of the strategy of sustainable development «Ukraine — 2020» recorded weak positive changes in approaches to budgetary providing in this sphere at the regional level. A comparative analysis of the state of this sphere financing from local budgets in Ukraine and EU countries was carried out, it is identified that in our country the expenditures of local budgets on this sphere are lower than in these countries. The following scientific approach to the assessment of trends in budget funding for cultural sphere at the subnational level is proposed: specification of the main factors influencing the amount of local budget expenditures on culture and art by region; caring out factor analysis by the method of principal components for structuring factors and their ranking by regions; finding a sample regression function to determine the peculiarities of the influence of the studied factors on the expenditures of local budgets on culture and art in the regions of Ukraine. It is substantiated that the improvement of budgetary financing of cultural sphere of Ukraine at the subnational level is based on a clear definition of approaches to the allocation of budgetary resources to this sphere, related to strengthening the fiscal capacity of local budgets, measures concerning stimulation of business activity and improvement of socio-demographic situation. Keywords: cultural sphere, local budgets, subnational level, budgetary financing, sustainable development, factor analysis. JEL Classification С10, H72, O18, Z10 Formulas: 0; fig.: 1; tabl.: 4; bibl.: 19.
Highlights
One of the components of the sustainable economic development strategy of Ukraine is the reform of the state policy in the cultural sphere (CS)
We use the following scientific methodological approach: we evaluate the dynamics of changes in the expenditures of local budgets (LB) on culture and arts (C&A), structure the factors that influence on the subnational budgeting of this sphere, by factor analysis and factor ranking, the determination of correlation-regressive dependencies
It is possible to economically interpret the multiple regression model as follows: when the resident population by region grow for 1.000 people, the average LB expenditures on the C&A by region will increase by 0.093 mln UAH; as the disposable population income grows up for 1 mln UAH, the average amount of the LB expenditures on the C&A will reduced to 0.0055 mln UAH; an increase in the number of enterprises by 1 unit will lead to an average increase in the LB expenditures on the C&A by 0.0271 mln UAH; if the volume of the intergovernmental transfers (IGT) by region build up for 1 mln UAH, the average amount of the LB expenditures on the C&A will increase by 0.0532 mln UAH
Summary
One of the components of the sustainable economic development strategy of Ukraine is the reform of the state policy in the cultural sphere (CS). If we take into account the possibility of adapting the experience of the EU budgetary financing of the CS at the subnational level, it is important for Ukraine to ensure sustainability of approaches to allocation of the budgetary expenditures for cultural and physical development in terms of the state and regions, decentralized governing of the CS and clearly delineate local strategic objectives development of culture. Taking into account the practice of the EU countries and the sustainable development strategy for Ukraine, it is important to continue the reorientation of the CS budgetary financing to the subnational level in order to ensure positive changes in the socio-economic development of our country’s regions
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