Abstract
The introduction of a qualitatively new type of relationship between citizens and authorities, one in which every person would be guaranteed real observation and protection of the rights and freedoms in these bodies activity, should be one of the priority areas of socio-political transformation in Ukraine. The urgency of the improving local finances, the formation of local budgets and the use of their funds is increasing due to changes in local self-government. The article proposes a scientific methodological approach to assessing the level of financial decentralization in Ukraine during the period of the decentralization reform (2014–2017). The universal integral indicator of financial decentralization has been calculated, which has found that local budgets improve public funds management, which is illustrated by the growth of the integral indicator level in dynamics. A number of recommendations are also provided for improving the budget process transparency for each of the components: budget information openness, the state and effectiveness of budgetary supervision, and public participation in the budget process. The idea of the relationship between the budget process transparency and the results of the financial decentralization reform is proposed.
Highlights
Transparency of the budget process is one of the prerequisites that allows society to identify the problematic aspects of fiscal policy and interact with public authorities for their solution
The first stage of the evaluating financial decentralization was the selection of indicators that fully characterize the state of fiscal decentralization of the budget and some aspects of the budget process transparency
In addition to financial resources, a larger number of budget authorities have been transferred to the local level, which is confirmed by an increase in the share of local budget expenditures in GDP
Summary
Transparency of the budget process is one of the prerequisites that allows society to identify the problematic aspects of fiscal policy and interact with public authorities for their solution. The lack of a sufficient level of budget transparency threatens the key principles of civil society, which raises questions about the government actions effectiveness. The optimal financial decentralization of the budget, in turn, is a consequence of a balance between the interests of the state and the civil society. The problem of ensuring the socioeconomic needs of the entire population is especially relevant in today’s period of change, when decentralization reform becomes one of the key aspects among the government strategic plans. Transparency ideas in the budget process primarily include the components of the budgetary information openness, the adequate level
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