PROBLEMS OF MUTUAL ADMINISTRATION OF TAX POLICY AND REFORMS DECENTRALIZATION IN UKRAINE

Abstract

The article deals with the peculiarities of the decentralization reform in Ukraine, as well as the related problems of financial support for the implementation of the powers entrusted to them by local self-government bodies. Particular attention is devoted to tax decentralization as one of the most important sources of the formation of financial resources of territorial budgets. Thus, the relationship between the tax reforms of 2015-2016 and the decentralization reform in Ukraine has been established, which has allowed to distinguish the main problems in this area, namely: consolidation of taxes, increase of the fiscal load, changes in the proportions of the distribution of income tax of individuals, etc. Based on these references, there is a need to study the theoretical basis for tax reform and decentralization reform, to establish the level of their coherence, as well as to identify the main problems in the features of the formation of the revenue part of the local and state budgets.At the same time, the article proposes the main prerequisites for the implementation of an effective decentralization model inUkraine. The authors analyze the structure of distribution of tax revenues between the state and local budgets, which made it possible to assess the efficiency of the decentralization process inUkraine. It is proved that the current level of revenues to local budgets and the change in the share of own revenues in their structure do not contribute to strengthening the financial security of local governments and do not correspond to the proclaimed trend of reforms in the context of decentralization.In order to increase the success of the decentralization reform in Ukraine, it is proposed to give local authorities with such powers that they will be able to respond to changes in the demand of the population for local public goods and services. At the same time, financial support of local authorities should be carried out by redistributing tax revenues in order to reduce the share of state budget revenues in the structure of the consolidated budget.