Abstract
One of the current problems of using budget instruments of support and stimulation of regional development is their low efficiency, which requires the improvement of existing ones and introduction of other, more rational ones. The purpose of the article is to determine the impact of current budget instrument on indicators of regional development, with the help of economic and mathematical modeling, in order to determine their effectiveness and to provide recommendations for introduction of more effective instruments of support and stimulation of regional development. The article shows the influence of budget instruments on such indicators of regional development as capital investment at the expense of own funds of enterprises and organizations, the unemployed population, the volume of industrial production (goods, services) that have been sold, the volume of construction works. The results of the modelling have shown that the main influence on the exemined indicators of regional development is made by capital investment using the state budget, in particular, on increasing the volume of construction works, the volume of industrial production sold and the volume of capital investments at the expense of enterprises and organizations' own funds, which is related to the direction of such state investments, namely infrastructure projects. Nevertheless, capital investment at the expense of local fundsbudgets have only a small effect on the growth of capital investment using their own funds of enterprises and organizations.The insignificant influence of the studied budget instruments on indicators of regional developmentis proved, which refers to their low efficiency, and highlights the need to improve the budget instruments of support for regional development and focus on the fiscal stimulation instruments for the effective use of the internal resource of the regions (using the grandees by communities and attracting investment in development of the territory). Recommendations for increasing the efficiency of the use of such a budget instrument as the State Fund for Regional Development are given.
Highlights
At the current stage of development of the Ukrainian economy, one of the main tasks of functioning of the state is to stimulate the development of the regions, since the general condition of the countrys economy depends on the degree of growth of their social and economic indicators
Legislation on regional development has been substantially improved in Ukraine, a number of regulatory and legal acts on regional development strategies, medium-term budget planning, development and implementation of new budget support instruments and incentives for regional development (SFRD, subventions from the state budget to local budgets have been developed and adopted according to social and economic development of separate territories and on the formation of the infrastructure of the united communities)
To stimulate and intensify the initiative of local authorities, it is expedient to gradually increase of the share of co-financing from local budgets of regional development projects, which are realized at the expense of the SFRD, from 10 to 20%, which corresponds to the model of cofinancing of the EU countries
Summary
At the current stage of development of the Ukrainian economy, one of the main tasks of functioning of the state is to stimulate the development of the regions, since the general condition of the countrys economy depends on the degree of growth of their social and economic indicators. The state has a large number of instruments for supporting and stimulating regional development, including budget ones. The use of budgetary tools should be justified, taking into account the peculiarities of the stage of the development of the country, the peculiarities of the development of the regions, economic and social factors. It has to be consistent with the economic development strategy and agreed with each other and the priorities, which were adopted at the legislative and governmental levels that create an opportunity to intensify investment processes in all areas of the economy and counterbalance regional disparities. The new requirements for the financial support of regional development, namely the rejection of paternalism and the transition if regions and communities to self-sufficiency through the search for resources on the ground, the disclosure and effective use of internal potential, which lead to a change in approaches to the selection and formation of financial support instruments for regional development
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