THEORETICAL AND ORGANIZATIONAL FUNDAMENTALS OF THE FUNCTIONING OF THE REGIONAL FISCAL SPACE

Abstract

Introduction. The functioning of the regional fiscal space is conditioned by the need to make management decisions regarding the formation of budgetary resources at the local level and the modernization of the regional economy, the implementation of structural reforms in the social sphere, and the formation of strategic goals for the development of regions. In Ukraine, tax revenues are of dominant importance in ensuring the filling of the revenue part of both the state budget and local budgets, since two-thirds of their revenues are formed due to them. The problems facing the state in conditions of limited financial resources, in order to ensure activities and stimulate the economic development of the regions, require the search for reserves and opportunities to release the funds involved and ensure financing of priority areas. The purpose of the article is to theoreticaly substantiate the essence and to definite the features of the regional fiscal space formation of Ukraine. Results. As a result of the study, it is substantiated that the functioning of the regional fiscal space is an important basis for ensuring the flexibility of the fiscal policy. The effective functioning of the fiscal space for the economic development of Ukraine has one of the decisive values, because it covers all instruments of fiscal policy, the budget, development of economic development programs, investment of the economy, support of the social sphere. Conclusions. Summarizing the views of scientists regarding the interpretation of the economic essence of the definition of "fiscal space", we believe that fiscal space is financial relations that arise as a result of the interactions of individuals, legal entities and their groups with the state or state institutions regarding the distribution, redistribution and use of financial resources at the state level regarding the management of revenues, expenditures and debt obligations of the state.