QUANTITY ASSESSMENT AND DIRECTIONS FOR IMPROVING THE EFFICIENCY OF FISCAL DECENTRALIZATION IN UKRAINE

Abstract

Urgency of the research. Target setting. Experience shows that industrialized countries are more successful in ensuring the efficiency and stability of the economy through effective fiscal policies. It is expedient to study the best international developments regarding fiscal decentralization processes in order to optimize the efficiency of Ukraine's fiscal policy implementation under different scenarios of economic development. Actual scientific researches and issues analysis. The significant contribution of domestic and foreign scientists to the development of the theory of fiscal decentralization should be noted, namely, it is advisable to distinguish significant scientific achievements of such scholars as: Dlugolsky O. V., Shamans'ka O. S., Demyanyshyn V.G., Bogdan T. P., T. Jenjeyevich, A. Alesina, F. Rocha, L. Lambertiini, engaged in research of problems on this subject. Uninvestigated parts of general matters defining. The issue of optimizing the results of fiscal decentralization in Ukraine has not been efficiently developed by scientists. The research objective. The purpose of the article is to improve the methodological approach to optimizing the quantitative parameters of the effectiveness of the implementation of fiscal policy. The statement of basic materials. The article provides a cluster analysis of the regions of Ukraine in accordance with the GRP per person and the level of intergovernmental transfers in 2015 with the help of the toolkit of the Statistica package, on the basis of which an optimization model of the effectiveness of fiscal policy implementation in different scenarios of the economic development of Ukraine is proposed which is based on the definition of the target function of maximizing the fiscal decentralization index. Conclusions. The implementation of the proposed optimization model will increase the independence and capacity of Ukraine's territories and reduce the level of intergovernmental transfers. This approach will allow a fair competition in the regions, providing favorable conditions for investors to place production in certain areas.