TAX STIMULATION AS A FINANCIAL INSTRUMENT FOR SUSTAINABLE SOCIAL AND ECONOMIC DEVELOPMENT OF HROMADAS AND REGIONS

Abstract

The article examines the tendencies of structural changes in the formation of budget revenues of different levels related to the processes of financial decentralization and identifies important areas of tax stimulation of social and economic development of hromadas (local communities) and regions in Ukraine.Taxes are the major financial instruments for ensuring the sustainable social and economic development of hromadas and regions. Budget and tax policies are tools for developing the regional economic system. Stable local economic development can be ensured if the tax system is improved. Local budget revenues are the major and stable source of local economic development, and their growth is an important issue, as these funds can serve as an incentive to stimulate investment in the regions. Goal. The purpose of the article is to investigate the trends of tax system development in the conditions of financial decentralization and to identify financial mechanisms and means of stimulating sustainable social and economic development of communities and regions of Ukraine. Method. The study uses an empirically theoretical method based on the analysis of statistical data, synthesis of social and economic status of territorial development and community development. Results. To achieve a high level of sustainable development of the regions of Ukraine, a set of tools for stimulating the development of local self-government is proposed.