Abstract
Abstract. The article summarizes the arguments and counterarguments within the scientific discussion on the resource management of the State Fund for Regional Development of Ukraine (Fund). The main purpose of the study is to assess the effectiveness of resource management of this Fund from the standpoint of improving the effectiveness of state financial support for regional development in Ukraine. Systematization of literature sources and approaches to solving the problem of effective use of state budget funds to finance regional development goals showed that in general there is a positive assessment of the feasibility of the State Fund for Regional development in Ukraine, but there are significant shortcomings and problems in financing regional development measures. The urgency of solving this scientific problem is that being a significant budgetary resource for the implementation of goals and objectives of regional development, the Fund is not used effectively due to improper management. The study of the peculiarities of the resource management of the State Fund for Regional Development of Ukraine in modern challenges was conducted from the standpoint of assessing compliance with national legislation of budgetary discipline, economic and social feasibility and taking into account the following factors: ensuring full compliance with budget legislation of Ukraine; absence of violations of terms of distribution of means of fund; absence of violations in planning, selection and approval of investment programs and regional development projects; directing the established share of Funds resources to the economic development of the regions; timely and full development of resources at the planned facilities; an effective system of internal control over the effective use of budget funds; based on the results of the study, conclusions were prepared. The methodological tools of the study were the methods of economic and statistical analysis, grouping, comparisons, index analysis and factor analysis. The research period is 2016—2020. The article presents the results of the empirical analysis, which showed that there are systemic problems in the organization of resource management of the State Fund for Regional Development. The study empirically confirms and theoretically proves that it is necessary to update the provisions of Article 241 of the Budget Code of Ukraine to determine the resources of this Fund in the amount of at least one percent of the total fund of the State Budget of Ukraine; the distribution of the fund’s funds should take into account territorial differentiation according to the regional human development index; identification of additional criteria for selection of regional development projects that will ensure the achievement of positive economic changes in the regions; organize an effective system of internal control and internal audit. The results of the study can be useful for use in research and in the activities of state, regional and local governments in terms of taking into account the peculiarities of the management of the State Fund for Regional Development in Ukraine. Keywords: state budget, state fund for regional development, management efficiency, investment programs and projects, regional development, financial support. Formulas: 0; fig.: 1; tabl.: 2; bibl.: 22.
Highlights
The Law of Ukraine «On the State Budget of Ukraine for 2019», Articles 27 and 29 stipulated that 50 percent of the Fund’s resources were distributed by the Cabinet of Ministers of Ukraine to implement the priorities of economic growth and living standards, the other 50 percent were distributed by the Cabinet of Ministers of Ukraine on such principle: competitive selection conducted at the local and central level; on the proposals of people’s deputies of Ukraine, provided to the Ministry of Regional Development, as well as financial support for the implementation of projects-winners of the «All-Ukrainian public budget»
As a result of such inefficient work on the Fund’s resources management, the distribution of its first part was approved in early June 2017 [16], and in 2018 — in the third decade of May [17], in 2019 and in 2020 in the second decade of May [18; 19], it should be noted that in 2019 the list of investment programs and projects was amended by the Cabinet of Ministers of Ukraine 4 times (15.05.2019, 05.07.2019, 09.10.2019, and 04.12.2019) [20,21,22], ie with a significant delay, which was a violation of the Budget Code of Ukraine and did not contribute to their full and effective use
In order to increase the efficiency of management of resources of the State Fund for Regional Development it is necessary:
Summary
Since 2000, Ukraine has been undergoing a rather complex process of reforming public administration of regional development, first of all of the state regional policy, which in an open economy should ensure the transition to a new quality of national economy development, increasing competitiveness of all regions of the country both in external and internal markets, which should reduce the disproportion and imbalance of the economy and the severity of human development problems, promote its inclusiveness, as well as new standards for the ability of central and local governments and self-government to implement this policy. The Law of Ukraine «On the State Budget of Ukraine for 2019», Articles 27 and 29 stipulated that 50 percent of the Fund’s resources were distributed by the Cabinet of Ministers of Ukraine to implement the priorities of economic growth and living standards, the other 50 percent were distributed by the Cabinet of Ministers of Ukraine on such principle: competitive selection conducted at the local and central level; on the proposals of people’s deputies of Ukraine, provided to the Ministry of Regional Development, as well as financial support for the implementation of projects-winners of the «All-Ukrainian public budget» This approach to the distribution of funds shows the strengthening of the centralization of state power in Ukraine. The necessity of changing of the mechanism of distribution of this resources according to the regional human development index, which, in our opinin, provides the grounds of comparisons of socio-economic development of regions, disproportionate level and quality of life, the state of functioning of the system of state social standards and guarantees, was grounded (Table 1)
Sign-in/Register to view highlights & summary 
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call