METHODICAL AND PRACTICAL ISSUES REGARDING THE PLACE OF ENVIRONMENTAL AND NATURAL RESOURCES PAYMENTS IN LOCAL BUDGETS IN CONDITIONS OF AUTHORITIES’ DECENTRALIZATION

Abstract

The paper outlines the issues regarding the transformation of role and place of environmental tax and rent payments for natural resources in local budgets in the context of the reform of local governance and authorities’ territorial organization in Ukraine. Methodical approaches to assessment of such transformations are suggested. The processes and consequences of changes in management of natural resources and ecological security are the object of estimation and financial and budget results of such changes in conditions of ongoing administrative and financial decentralization reform in Ukraine are the subject of estimation. At the first stage, the authors compare the changes in competences of authorities of various levels before and in the process of administrative and financial decentralization. The second stage stipulates the defining of volumes and dynamics of the revenues from rent payments for natural resources and environmental tax to local budgets. The third stage provides the analysis of changes in distribution of competences and in the dynamics of revenues from rent payments for natural resources and environmental tax. It also reveals problem issues and suggests the ways of their solution. The conducted assessment contributed to conclusions regarding the lack of changes in the distribution of managerial liabilities between the state executive authorities and local governments and reduction of the share of rent payments for natural resources in local budgets from 2.4% down to 1.1% in 2014—2017 with its growth in state budget in the same period from 5.4% up to 5.7%. It does not correspond to the decentralization concept. The situation with distribution of environmental tax is somewhat different, yet low rates of this tax do not provide revenues to local environmental funds sufficient for solution of environmental issues. The range of activities is suggested to overcome the defined problems and increase the role of payments for natural resources and environmental taxation in local budgets in conditions of authorities’ decentralization.