The intergovernmental relations and their regulation in the context of decentralization of fiscal policy

George Abuselidze,S Semerikov,O Bondarenko,V Osadchyi,A Iatsyshyn,S Klimov,S Chukharev,T Vakaliuk,H Danylchuk,S Sakhno,P Nechypurenko,A Striuk

doi:10.1051/e3sconf/202128002010

George Abuselidze, S Semerikov + Show 10 more

Open Access

https://doi.org/10.1051/e3sconf/202128002010

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Abstract

The suspension of economic relations as a result of the global pandemic has severely affected the country’s peripheries. Unequal development of territorial units and overcoming socio-economic problems is the biggest challenge of any country. To address these challenges, the country needs to mobilize large amounts of finance and make optimal allocations. Intergovernmental relations play an important role in the effective implementation of the transformation of the country’s economic and political system. The aim of the paper is to study the characteristics of revenue mobilization and distribution between the levels of the fiscal system. There are developed some recommendations for improving inter-budgetary relations based on the experience of different countries. The recommendations proposed as a result of the research analysis can be used for both theoretical (for lecture) and practical (for legislative) purposes.

Highlights

The virus originated in 2019 has taken the form of a global pandemic by 2020
The global world is facing the conditions of the greatest economic recession and economic crisis has arisen in many countries (Fig. 1)
Each of them must individually define the principles of separation of functions of central and local government and the degree of autonomy of self-governments

Summary

Introduction

The virus originated in 2019 has taken the form of a global pandemic by 2020. As a result, the global world is facing the conditions of the greatest economic recession and economic crisis has arisen in many countries (Fig. 1). Despite the model of budget arrangement to get out of the economic recession of the country and achieve economic growth, it is very important to provide financial resources to the budgets of local self-governing units (municipalities), where one of the most important places is inter-budgetary relations. Fiscal autonomy of local government is a relative concept that is determined by whether governing bodies have a sufficient amount of their own revenues and whether they have the right to manage them independently the functions they have to performed. This does not mean that they are completely isolated from each other. The centre and the municipalities have common interests for the public good and relevant coordinated strategic actions in economic and political priorities [7]

Legislative regulation

Literature review

Discussions

Foreign experience of fiscal arrangement

Findings

Conclusions and recommendations