Finance Of Ukraine Research Articles

QUINTESSENCE OF UKRAINE’S FINANCIAL SECURITY STRENGTHENING IN THE CONTEXT OF ECONOMIC SPACE VOLATILITY

The formation of a stable financial system is one of the important tasks facing the state. The lack of a comprehensive strategy to strengthen Ukraine’s financial security leads to fragmentation and insufficient predictability of the country’s financial policy. This directly threatens Ukraine’s national security and economic sovereignty. The author’s developments in the directions and mechanisms of ensuring the financial security of the state are aimed at forming a strategic vision of the development of the domestic financial market, promoting consolidation and effective interaction of state authorities, first of all the Ministry of Finance of Ukraine, the National Bank of Ukraine, the Committee on Financial Policy and Banking of the Verkhovna Rada Ukraine and society. This article provides for the study of factors affecting the financial security of the state, the comparative analysis of approaches to the definition of financial security used in foreign and domestic practices. As a result of the analysis, a comprehensive signal system of indicators of financial security assessment of the state will be proposed in scientific work, principles of its strengthening will be developed, mechanisms for ensuring financial stability in the context of strengthening the financial security of the state are substantiated. The results of the evaluation will serve as a basis for substantiation of strategic directions, identification of instruments and measures for ensuring the financial security of the state by the bodies of macroprudential supervision, determination of ways of development of competition in the financial market. Appropriate developments will facilitate timely and adequate management decision making in the context of high volatility of the economic space, which will ultimately serve as a basis for strengthening the financial security and development of the Ukrainian economy as a whole. In Ukraine, the financial policy of economic growth is the basis for the development of the state, improving the well-being of the population, establishing new social standards. Financial stability is an important factor in influencing economic development, the social sphere, economic transformation, demographic change, the well-being of society, and financial security as a component of economic security. Against this background, the issue of ensuring the financial security of the country and developing strategic directions for its enhancement is urgent.

Peculiarities of business financing in the context of global trends in the use of FinTech innovation in the capital market

Methods. The theoretical and methodological basis of the study are scientific developments of domestic and foreign scientists related to determining the role of FinTech innovations in the development of the financial services market and the formation of FinTech tools for redistribution of financial resources between economic entities. The research used methods of theoretical and empirical research, in particular, abstraction and comparison in determining the features of the functioning of different types of online financing for SMEs; grouping method – in the study of regional features of the development of online financing models; methods of mathematical statistics – in determining development trends and forecasting the amount of alternative online financing by small and medium-sized businesses. Methods of graphical analysis allowed to visually reflect the results of the study. Results. The authors of the article analyze the current state and trends in the formation of fintech companies in Ukraine and financial support of business in the context of global trends in information technology. The place, role and features of using FinTech tools for redistribution of financial resources between economic entities based on the introduction of alternative models of business financing in Ukraine are identified. Novelty. A comparative description of the main types of online financing for small and medium-sized businesses is presented. The dynamics of changes in the volume of alternative online financing in the world and the specifics of the development of global and regional markets of alternative online financing are analyzed. The main determinants of influence on the development of online financing in the country are identified. Practical value. It is possible to apply the developed and submitted proposals for the further functioning and development of alternative business financing in Ukraine, taking into account global trends. The findings and results of the study will help intensify the implementation of online platforms and create conditions for peer financing of individuals and legal entities, promoting their development.

Current challenges for sustainable forestry management in Ukraine: production, taxation and investments issues

Ukraine's forestry has been experiencing systemic political, economic, social, and environmental problems for many years. This article aims to find new ways to balance production, taxation, and forestry investment to ensure sustainable development. We sought answers to three main questions: Does the modern mechanism of state regulation and forestry financing in Ukraine meet sustainability requirements? What changes will the critical problems of forest ecosystems arise in Ukraine in the long run? What are the prospects for the development of investment in forestry in Ukraine? To answer these questions, we conducted exploratory analyses of taxation and investment in forestry management. Then, we developed a multifactorial forecasting model to predict forest ecosystems' restoration state by 2035. Using the model, we characterized the relationship between ecological and economic factors for reforestation in the border regions of Ukraine. Finally, we analyzed the coefficients of forest capacity, yield and dynamics of afforestation. According to the results, we proposed: 1) to separate the functions of standard-setting and forest inventory from the function of forest land management; 2) to separate the function of economic activity and control over the implementation of forestry development plans; 3) to stimulate public control and increase effective monitoring of anthropogenic load, forest use and rehabilitation; 4) to improve the organizational and institutional management mechanism as a component of forest production which is the key to improving the forestry sustainability.

INSTITUTIONAL SUPPORT OF PUBLIC FINANCES

Purpose. The purpose of the article is to study the legal and organizational principles of public finance management. Methodology of research. To achieve this goal, the following tools of research methods were used: dialectical - to determine the initial conditions and content of public finance; analytical - when processing literary and Internet sources; causal - to determine the institutional support of public finances; abstract-logical - to generalize the presented material and draw conclusions. Findings. The issues of the essence, structure and peculiarities of the functioning of public finances in Ukraine are studied; the institutional units that ensure their formation and control over their use are specified. The peculiarities of the content of public finances of Ukraine are considered, the peculiarities of their components are determined in order to achieve not only economic, but also social goals by the state. Under the institutional support of public finances, we understand a purposeful hierarchical system of legal institutions that form, use, redistribute and control the funds of the public sector. Thus, based on this, among the components of institutional support are: state; executive, legislative and judicial powers; VRU, CMU, central executive bodies, higher judicial bodies, National Bank, Accounting Chamber; local councils, local executive bodies, budgetary institutions, subjects of state and communal property; advisory bodies under the President of Ukraine, the Cabinet of Ministers of Ukraine; scientific, public and professional institutions (organizations) in the field of public finance. The relevance of the study of issues related to improving the efficiency of state bodies on the basis of recommendations of international organizations and the formation of appropriate regulatory and legal support is substantiated. For example, it was noted that an action plan for the respective years should be developed, which includes directions for each area of the Strategy for Reforming the Public Finance Management System (in our opinion, public) and specifies the state bodies responsible for a particular area of public finance. The bodies of state financial control are determined in accordance with the current legislation, in particular: external control carried out by the legislative bodies - the committees of the Verkhovna Rada and the Accounting Chamber; executive authorities and the central bank - the Cabinet of Ministers (through specialized state bodies) and the NBU; and internal (performed by heads of state bodies) and internal audit (performed by the main managers of budget funds). The requirements of the current legislation to ensure openness of their spending and opportunities for free access to this information in order to strengthen public control over the use of public funds are analyzed. The composition and main problems of institutional support of public finances are formulated and practical recommendations for its evaluation are provided, which will allow to increase the efficiency of public finance management. Originality. The scientific novelty lies in the separation of the content of the institutional support of public finances and recommendations for its evaluation according to the established criteria. Practical value. The main provisions of this study in the form of evaluation proposals can be used to monitor the impact of public reform policy on the development of public finances. Key words: public finance; management; institutional support; public authorities; public financial control.

Сучасний стан та особливості розвитку венчурного інвестування в Україні

The article is aimed at studying the current state of venture investment in Ukraine and determining further prospects for its development. Carrying out the analysis and summarizing the scientific selections of numerous scholars, the essence and specifics of venture capital were considered, the factors that have the greatest impact on the development of the venture industry were provided. In the course of the study, the analysis of venture investment indicators in Ukraine was carried out: the number of joint investment institutions; the number of asset management companies; the total value of net assets of joint investment institutions; the number of the most profitable venture funds in Ukraine and their profitability indicators. A number of issues have been identified that need to be addressed first, as they impede the intensification of venture investment in Ukraine. The main focus is on the peculiarities of financing innovations in Ukraine. The directions of venture investment in the Ukrainian economy are distinguished and comparisons with certain features of venture investment in European countries is made. According to the finding, it is proved that venture financing in Ukraine is prone to the implementation of medium- and short-term investment projects. It is found that most venture funds are unable to perform their economic functions, as they are mostly used to optimize asset management of large industrial companies and medium-sized enterprises. On the basis of the identified problems, the directions of activation of venture funds are proposed, the main one being active policy on the part of the State, directed towards strengthening the position of venture funds.

Formation of institutional model of project financing in Ukraine

Purpose. Substantiation of the formation of the mechanism of project financing for solving issues of financial maintenance of infrastructural projects of innovative development in Ukraine. Methodology. The information base of the research is legislative and normative documents and results of scientific achievements of leading foreign and domestic scientists. The following methods, such as analysis and synthesis; comparison and systematization; observation; graphic, tabular; logical generalization are used. Findings. According to the results of the research, it is proved that to ensure sustainable economic growth and diversification of Ukraines economy, the importance of institutions for development and use of such a multi-instrumental form of reproduction of real investments as project financing, becomes actual. Based on the system approach, the features, elemental composition and subsystems of the project financing mechanism are determined. It is established that the current legislative basis for the formation of the project financing mechanism in Ukraine is fragmentary and needs further development. It is proved that the implementation of measures of state stimulation of the processes of financing the innovative development of Ukraines economy will be facilitated by the adoption of the Laws of Ukraine On The Bank of Development, On Syndicated Loan and the proposals for the formation of project financing developed in the research. Originality. For the first time, a comprehensive theoretical approach to the formation of the project financing mechanism in Ukraine has been implemented. The need is substantiated for highlighting such subsystems of the mechanism as providing subsystem (institutional environment of which is legislative support and regulatory bodies), transforming subsystem (financial instruments and participants of which are the Bank of Development, international financial organizations, banks, institutional investors, development institutions, project sponsors) and performance subsystem (financial resources in the required amounts, currencies and terms). The effective operation of the proposed mechanism helps to overcome the shortage of long-term financial resources needed for lending support of innovative enterprises that implement large-scale and capital-intensive investment projects and programs of national importance. Practical value. Introduction of the mechanism of implementation of the program for supporting the project financing development will allow accumulating considerable amounts of financial resources from various sources on a long-term target basis; increasing the level of investment and the number of innovative projects; reducing the total cost of funding and risks through their redistribution among participants of the project.

Сучасні підходи до управління фіскальними ризиками: методологія та практика

The formation of public finances in Ukraine is significantly influenced by fiscal risks, which, first of all, are associated with macro-economic shocks, accumulated through the State and guaranteed debt, natural disasters and other circumstances that have a significant negative impact on the stability of indicators of the budget system. The article is aimed at disclosing the essence, systematize methodological principles and practical approaches to managing fiscal risks for assessment, minimization of their impact on budget indicators in modern conditions of economic uncertainty. Comparison and generalization of existing developments of this problematics made it possible to systematize and characterize the following: the main approaches to understanding the economic essence of fiscal risks (functional, institutional, causal, structural, managerial); categorize risks in accordance with the current recommendations of international institutions (IMF, World Bank, OECD); reveal the peculiarities of the main components of the best practices of fiscal risk management in the countries of the world. Attention is focused on expanding the classification of fiscal risks in the national methodological provisions and their taking into account in the tax and customs spheres; directions of integration of the fiscal risk management system into the budget process of local budgets, amalgamated hromadas; development of scientific provisions on the substantiation of the integral indicator of assessing the fiscal risks, characterized by the nonlinear nature of the development of economic processes and the creation of powerful think tanks for qualitative measurement and forecasting of possible threats in the sphere of public finances.

ЦИФРОВА ТРАНСФОРМАЦІЯ ДЕРЖАВНИХ ФІНАНСІВ В УКРАЇНІ

The difficult political and economic situation in Ukraine presupposes an immediate solution to the issue of increasing the efficiency of the formation and distribution of public finances and their transparency. Digital technologies have great potential for improving public financial management, and will significantly change traditional fiscal policy instruments over time. The digital economy has been identified as one of the main directions of development of the Ukrainian economy for the next decade. Theoretical issues of digital transformation of public finances of Ukraine are investigated. If technology is used wisely, fiscal policy will be more efficient, transparent, fair, which will have a positive impact on the standard of living and economic development of Ukraine. The potential benefits are huge, so the government will have access to better data and more efficiently and transparently form and allocate financial resources. The necessity of digitalization at the present stage taking into account global processes. The recommendations of international financial organizations on digitalization of public finances and features of their application in the Ukrainian realities are covered. The main direct and indirect beneficiaries are identified and the positive effects of digital transformation of public finances are identified. The main ones are: increase in tax revenues; better forecasting and budgeting; fair distribution of social benefits. The financing of the digital transformation of public finances in Ukraine, which is mostly due to international technical assistance, is analyzed. The current state of digitalization of public finances and the main platforms of open data are studied, the potential of development is estimated. The main challenges of implementing the digital transformation in public finances are highlighted: cybersecurity, loss of personal data, unauthorized change of data in registers; untimely data update, impossibility of compilation, data formatting, existence of several platforms of the same type; blocking the disclosure of data by individual participants, hiding data; system failures; lack of qualified personnel to develop and configure the system; ethical issues of data disclosure; increasing competition and the quality of the IT services market in Ukraine; standardization of quality of digital services. Thus, increasing trust in the government and effective interaction between the population, business and the state, reducing corruption - all this is possible due to the digitalization of Ukraine's economy, which must first begin from public finances.

DEFENSE FINANCING FEATURES WITHIN THE CONTEXT OF THE NEW CHALLENGES

The beginning of the third millennium was marked by the desire of the leader countries (USA, China, and Russia) to geopolitical, geostrategic and geo-economic redistribution of spheres of influence. The collapse of the USSR, the dissolution of the Warsaw Pact Organization, the end of the Cold War did not bring the world closer to stability and security. Military force capabilities continue to be considered as one of the most powerful factors in world politics. Proof of this is the intensification of the struggle of the world›s superpowers for regional and global leadership, control over oil, gas and energy flows. It is worth mentioning the Transnistrian conflict, Russia-Led wars in South Ossetia and Abkhazia, the Russian-Georgian war in August 2008, the civil war in Syria, the intensification of Islamic extremism within the ISIS, Russia›s annexation of Crimea, the hybrid war unleashed and continues to wage by the Russian Federation against Ukraine. In this connection, it is becoming increasingly important to provide corresponding levels for the defense budget funding. Thus, the study of the peculiarities of defense financing in Ukraine and powerful military superpowers is of considerable scientific, practical and political interest. Comparing the defense expenditures of different countries makes it possible to identify key problem issues in the defense financing of Ukraine and bring the corresponding costs to international standards. This indicator is one of the most important criteria that characterize the state›s desire for development, relevant combat readiness of the armed forces and other military forces in the face of new challenges. The last years of the previous century were characterized by global geopolitical changes and growing contradictions, which resulted in: the transformation of the bipolar model (USA - USSR) into a multipolar (powerful military superpowers - the USA, Russia, China, Saudi Arabia, France, Japan, Germany, India, Brazil)); globalization of world economic processes; erosion through «hybrid wars», which are a new kind of global confrontation in today›s destabilized international security environment, the facets of the division between war and peace. The availability of weapons of mass destruction and high-precision weapons in the third millennium, the growth of their capacity, the complexity of military equipment and combat assets, the use of new methods and means of warfare have led to significant changes in the functions and tasks of the armed forces, increasing their number and government spending on defense purposes. Today there are about 200 armies in the world with a total number of 24-25 million people (about 0.4% of the world›s population) (Military..., 2002). The state of the troops of any state must correspond to its economic capabilities and at the same time ensure the implementation of national security tasks.

Activities of joint investment institutions in Ukraine

Subject of research is the activities of collective investment institutions. The purpose of the article is to study the essence and features of the activities of mutual investment institutions in Ukraine, highlighting the shortcomings of its activities and prospects for development. Methods used in the research process: method of system-structural analysis and synthesis, method of comparative analysis, generalization, general scientific, special methods of scientific knowledge and other research methods. Study results. The role of joint investment institutions in attracting and trading investment funds is described. Application of results. The results of the study can be used in the activities of the Ministry of Finance of Ukraine, the Verkhovna Rada of Ukraine, the National Commission on Securities and Stock Market, as well as in higher education institutions in the teaching of economic disciplines. Conclusions. To attract investors to the market of collective investment institutions, it is important to implement a wide range of measures, the main of which is public awareness of such a market and informing each member of society about the benefits of investing in this market.

MANAGEMENT OF SUSTAINABLE ENTREPRENEURSHIP ADAPTATION TO TAX CHANGES IN ENVIRONMENTAL INVESTMENT

The article highlights the problem of management of sustainable entrepreneurship adaptation to tax changes in environmental investment and substantiation of the conceptual basis for assessing the efficiency of environmental investment in terms of Ukraine’s integration processes into European community that involves introduction of sustainable economic development and mechanisms of “green” economy. Methods. A study of the peculiarities of environmental financing in Ukraine has been conducted. The theoretical bases of investment management have been examined by means of the following methods: semantic analysis of interaction of the basic elements of environmental investment process for sustainable entrepreneurship development. With the use of a comparative analysis of environmental investment, efficiency and effectiveness of environmental tax collection in Ukraine and the EU countries, the expedience of using environmental taxation as a means of stimulating domestic environmental investment has been substantiated and the need to assess the efficiency of environmental investment has been defined. Results. A study of the peculiarities of domestic environmental taxation in order to establish its efficiency has been carried out. The experience of using taxes as a means of stimulating environmental investment in the EU countries has been under consideration. This research has shown that the efficiency of environmental taxes is ensured by their high rates, which encourage companies to innovate and make appropriate environmental investments. A number of shortcomings in the domestic environmental policy have been identified. It has proven the low efficiency of its instruments, in particular, related to assessing the efficiency of environmental investment. A study of the peculiarities of environmental financing in Ukraine has been conducted. The current tendencies of investment in environmental activities with the identification of causal relationships to substantiate management decisions to improve the use of financial resources for environmental purposes have been highlighted.

ІННОВАЦІЙНІ ІНСТРУМЕНТИ ФІНАНСУВАННЯ МАЛОГО ТА СЕРЕДНЬОГО БІЗНЕСУ У ГЛОБАЛЬНІЙ ЕКОНОМІЧНІЙ СИСТЕМІ

The article is devoted to the study of innovative tools for financing small and medium-sized businesses in the global economic system, as well as current trends in the development of alternative sources of credit for international business. The study examines the problems of attracting bank loans to small and medium enterprises, identifies features of using alternative sources of credit to finance the activities of small and medium enterprises in the world, describes groups of alternative methods of external financing of small.Based on the analysis, the features of the transition from traditional to innovative forms of small and medium business financing are identified, the conditions for regulating crowdfunding in the world are identified, the features of the development of alternative credit financing in Ukraine are highlighted. The advantages and disadvantages of crowdfunding as an innovative tool for financing the investment activities of the enterprise are summarized, as well as the prospects for its development in Ukraine are identified.The study substantiates that the current market situation and related uncertainties force the development and adaptation of new innovative instruments for financing small and medium-sized businesses, including the capital market; use hybrid tools, including venture financing and business angel support. According to the results of the research, possible methods of promoting crowdfunding among the countries of the world and scientific and practical recommendations for the introduction of innovative tools for financing the activities of small and medium enterprises in the international business system are proposed.

Strategic guidelines for the development of UTС finances: implementation of world experience

Introduction. In the context of reforming the system of local self-government and territorial organization of power, the use of world best practices in the context of decentralization and implementation of best foreign practices in shaping the finances of territorial communities and their associations is of paramount importance. Accordingly, a number of important theoretical postulates of domestic financial science need to be reconsidered through the prism of improving existing and developing the latest conceptual approaches to the functioning of the finances of united territorial communities (OTG) using international advances in this area. local development.Purpose. Given the limited theoretical and practical work of domestic scholars on the finances of the united territorial communities, the purpose of the article is to use the best world practices to improve the efficiency of OTG finances.Methods. The methodological basis of the study are general scientific and economic- statistical methods: analysis, synthesis, statistical method - to study the international experience of OTG finance reform; inductions, deductions - to determine the directions of development of OTG finances in Ukraine; abstract-logical, economic-mathematical - for estimating revenues and expenditures of local budgets of OECD countries. Results. The world experience of reforming the finances of territorial communities is considered. In the context of application of the best international practices the directions of development of finance of OTG in Ukraine under modern conditions of carrying out financial decentralization are offered. Estimates of revenues and expenditures of local budgets of OECD countries were assessed, which allowed to determine priorities in revenue generation, expenditure optimization, distribution of powers and functions, as well as the use of new sources to increase the revenue base of local communities and their associations in Ukraine. Discussion. The prospects for further research is to develop a model for optimizing the financing of OTG development in order to ensure the implementation of its own powers and functions.

ФІНАНСОВИЙ МЕХАНІЗM ДЕРЖАВНОГО УПРАВЛІННЯ ТРАНСФОРМАЦІЄЮ МЕДИЧНОЇ СИСТЕМИ УКРАЇНИ В РИНКОВИХ УМОВАХ

The features of the main models of financing the health care system in the world are described in the article. The priorities for the development of a multi-channel system of medical financing in Ukraine, which should be based on the budget-insurance financing model with the obligatory harmonious use of all other available financial sources (both budget and private resource), are identified. The modern financial mechanism of state management of the transformation of the medical system, which provides for the departure from medical subventions to more efficient distribution and use of funds through a single customer paid for actually provided medical services and provides the following elements: state guaranteed package of medical services for all citizens, a single national customer of medical services, payment for medical services upon request (“money follows the patient”) on the basis of the standard per person for a particular unit, as well as on the basis of payment for the treated case in case of specialized care of all units of medical care is described. The principles of financing primary, secondary (specialized) and tertiary (highly specialized) medical care institutions during the 2018-2020 reform is determined. It is proposed to develop compulsory health insurance, which would guarantee citizens the opportunity to receive medical care in accordance with the approved programs of compulsory health insurance. At the same time, it is essential that all segments of the population can receive guarantees of medical protection. It is envisaged that the insurance medicine system, which allows, on the one hand, to organize full funding of the industry and control the targeted use of funds, and on the other – to directly interest doctors, administrative and service staff in the results of their work.

УКРАЇНА І МІЖНАРОДНИЙ ВАЛЮТНИЙ ФОНД: ОСОБЛИВОСТІ СПІВПРАЦІ

У статті проведений аналіз основних етапів співпраці України з Міжнародним валютним фондом, а також виявлено основні переваги та недоліки співробітництва сторін. Проаналізовано основні вектори кредитування та їхній вплив на економічний та фінансовий стан держави у той чи інший період часу. Охарактеризовано вісім етапів співпраці, кожен з яких має свої особливості та причини у кредитуванні. Виділено, що найбільша питома вага кредитів МВФ за весь час його співпраці з Україною була спрямована на поповнення резервів Національного банку. Приділено увагу впливу кредитування МВФ на економіку України. Проаналізовано динаміку запозичень та погашення боргів Україною. Розглянуто сучасний стан розвитку відносин України та МВФ, а також запропоновано рекомендації для покращення співпраці задля покращення діяльності держави у сфері економіки та фінансів.

Правова природа податку та податкових правовідносин за Конституцією України

Стаття присвячена висвітленню одного з аспектів проблеми конституціоналізації публічних фінансів в Україні, а саме правовій природі податку та податкових правовідносин за Конституцією України. На думку автора, за своєю конституційною природою податок – це насамперед обмеження конституційного права приватної власності, зазіхання на власність у тій мірі, в якій воно зобов’язує до її відчуження. Всебічний захист права приватної власності в Конституції України зумовлений тим, що за майно, яке перебуває у володінні, користуванні і розпорядженні приватних суб’єктів, вони зобов’язані сплачувати податки і збори.У статті аргументується, що норми податкового права відображають свободу держави, інших публічних суб’єктів у податкових правовідносинах, містять вимоги до іншої зобов’язаної сторони (платників податків) про виконання податкового зобов’язання, при цьому зобов’язана сторона перебуває тільки у функціональній залежності від владного суб’єкта й організаційно йому не підлегла. Наголошується, що Конституція України закладає вихідні начала податкової системи України, визначає природу та призначення податку й податкових правовідносин в Україні. Системний аналіз Конституції України (ст.ст. 1, 3, 8, ч. 3 і 4 ст. 13, ст. 67) свідчить, що стягнення не є ознакою податку. Згідно із ст. 67 Конституції України, податки не стягуються і не вилучаються, а те, що стягується, – це вже не податок. Податок є платежем, активною дією і наслідком вольового акту платника податків.
 Аргументується, що, згідно з Конституцією України, обмеження форм прояву автономії волі суб’єктів податкового права не означає підпорядкування волі одних суб’єктів податкового права владним волевиявленням інших (на відміну від деяких інших публічно-правових галузей, наприклад, адміністративного права). Конституція України, як і Податковий кодекс України, не передбачає податкової субординації.

Current trends in debt policy of city councils and directions of its improvement

The need to rethink the role of urban debt policy in accordance with the growing needs of urban communities and their sustainable socio-economic development is identified. In Ukraine, the legal preconditions for the formation of cities' own debt policy and the implementation of borrowing in both domestic and foreign nancial markets. The current state of local budgets and decentralization processes only highlight the need for cities to develop debt policy. The formation of the institution of local borrowings in Ukraine is analyzed and an in-depth analysis of borrowings of city councils in 2014-2019 is carried out with the definition of three periods: 2014-2015 - increase in borrowed funds, but such borrowings were formed mainly due to debt activity of Kyiv City Council domestic local bonds; 2016–2017 - decrease in the amount of borrowed funds, which occurred under the inÀuence of macroeconomic, political and fiscal instability; 2018-2019 - resumption of debt activity of city councils that had experience of borrowing in the previous, relatively analyzed, period and diversification of forms of local borrowing. Based on the cluster analysis, the main characteristics of the modern debt policy of city councils of Ukraine, which is based on the di൵erentiation of city councils-borrowers, are determined. The main borrower remains the Kyiv City Council (the share was about 67%), the activity of borrowings was noted in the following city councils: Zaporizhia, Dnipro, Lviv, Odessa, Ivano-Frankivsk. It is established that the debt policy of city councils is based on raising funds from NEFCO, state-owned banks and the Ministry of Finance of Ukraine. Improving the debt policy of city councils of Ukraine should be based on the synergy of actions of central government agencies: (Ministry of Finance of Ukraine, Debt Agency of Ukraine, NBU, National securities and stock market commission (NSSMC)Financial Control Ofice, etc.) and city councils. Vectors for improving the debt policy of city councils should be an integral part of the Strategy for the Development of the Financial Sector of Ukraine until 2025 and meet its key strategic goals and directions. Key words: debt policy, local debt, local borrowings, domestic local government bonds, external local government bonds, fiscal decentralization.

НАСЛІДКИ РЕФОРМУВАННЯ БЮДЖЕТНОЇ СИСТЕМИ УКРАЇНИ

The budget process in Ukraine during the years of independence is in a state of reformation due to the need to improve the quality of life of a large part of the country's population, raise social standards, provide the preconditions for economic growth. Thus, the process of finding optimal budgetary mechanisms that will ensure the financial sustainability, efficiency and effectiveness of budgets of all levels in Ukraine continues and is relevant in the current economic, social and political conditions of society. During the research, the stages of reforming the budget system of Ukraine were periodised in the article: stage 1 – the beginning of the formation of the budget system of Ukraine; Stage 2 – laying the foundations of Ukraine's own budget system; Stage 3 – development of Ukraine's own budget system; Stage 4 – elimination of deficiencies in the budget system of Ukraine; Stage 5 – the newest reform of the budgetary system of Ukraine based on the European integration course. The main directions of the modern reform of the public finances are outlined, in particular the reforms of financial decentralization: change of approaches to management of budgetary funds; development of the program-target method in the budget process; improving fiscal risk management; verification of government payments; development of state internal financial control; accounting and auditing reform; improving intergovernmental budgetary relations; increasing budget transparency; monetization of subsidies. The analysis of public finance reform in Ukraine was carried out with the help of economic indicators characterizing the level of development of the budgetary system. It is revealed that local budget revenues are mainly generated by tax revenues and intergovernmental budget transfers. The main consequences of the reform of public finances in Ukraine including: strengthening of the financial base of local budgets; intensification of work on the implementation of medium-term budgetary planning; raising the publicity of the budget process. The directions of further reform of the budgetary system of Ukraine are substantiated, in particular: to continue work on increasing the level of interest of local authorities in increasing their own revenues; strengthen work towards strengthening the financial autonomy of local budgets.

Methodology for Preparation of Audit Entities to External Control of the Quality of Audit Services

The requirements to the system of control over the quality of audit services are analyzed, which are specified in the Law of Ukraine “Audit of Financial Statements and Auditing” from 21.12.2017 No 2258-VIII; Directive of the Ministry of Finance of Ukraine “Approval of the Procedure for Inspection of the Quality Control of Audit Services” from 29.08.2019 No 362; Resolution of the Council for Supervision over Auditing at the State Institution “The Body of Public Supervision over Auditing” from 30.08.2019 No 6/7/13 “Information Questionnaire of Auditing Entity”. It is demonstrated that the quality control system requires corrections of the following: responsibilities of administration and staff of auditing entities for use of the adopted intra-firm provisions on the quality control system, requirements of ISQC1, IAS, the Law of Ukraine “Audit of Financial Statements and Auditing”; the requirements to staff (quality controller, reviewer, assignment partner); identification of threats to the independence and the auditor’s response on the assessed threats; the requirements to reviews of complaints, complicated issues; issues related with non-stop professional training of auditors. Special attention of auditors need to be drawn to the fact that the policies and procedures of the quality control system do not have to be confined to the audit of financial statements, but have to apply to other assignments on giving confidence and related auditor services. Besides that, assessment of threats to the independence has to be conducted for non-auditor services specified in Article 6 of the aforementioned Law of Ukraine.
 The studies conducted by the author allowed to elaborate procedures for quality control of auditor services; measures to stimulate staff of auditing entities to scrutinize requirements to implementation of the quality control system; obligating documents of auditing firms on assessment of ethical threats; sharing of duties among assignment group members; requirements to qualification of the key partner, quality controller; identification of auditor assignments; solutions of complicated issues and their documenting, measures on control of the assignment at the final phase and quality control of the assignment. The proposed measures are supposed to help auditing entities revise the already operating quality control systems in a timely manner, which will facilitate supply of high quality information to all the users of auditing reports, external quality controllers from the Body of Public Supervision over Auditing and the Auditor Chamber of Ukraine.

The constitutional principle of establishing taxes and levies exclusively by the laws of Ukraine

The article covers one of the aspects of the problem of constitutionalizing public finances in Ukraine, namely the legal construction and content of the fundamental, enshrined in the Constitution, principle of the legal regulation of the tax system of Ukraine - the principle of establishing taxes and levies exclusively by the laws of Ukraine. The article argues that state taxes and levies, in accordance with Article 67 of the Constitution of Ukraine, can be considered to be established by law if they are established by the proper subject, the legislative body, in the proper form of the law on amendments and additions to the Tax Code of Ukraine and in accordance with the procedure prescribed by law and enacted in accordance with the legislation in force. It is emphasized that the necessity of establishing taxes by the laws is dictated not so much by the task of ensuring the reality of their collecting and contributing to the budget as by the purpose of guaranteeing the protection of the owner from unauthorized interference by public authorities (the state and local self-government institutions). Only through the adoption of the appropriate law one can oblige the taxpayer to transfer part of his revenue (property) to the state revenue, without violating the constitutional guarantees of the inviolability of the right of private property.
 Taxing is a necessary condition for the existence of the state. The imposition of taxes by the law is of great practical importance due to public relations in the field of public finances. It is concluded that the constitutional purpose of the taxation system is to protect rights of property from public entities pursuits, which are limitless in principle, and to keep the balance of public needs and interests. From the standpoint of constitutional values, tax law is intended to limit the fiscal sovereignty of the state and to protect taxpayers from arbitrarily, groundlessly imposed taxes. The taxation system established by the law must have sufficient constitutional justification to determine clearly what specific part of the taxpayer's property a public entity can lay claim to and why. The establishment of taxes cannot be arbitrary, that is, taxes should not interfere with the exercise by individuals of their constitutional rights. Macro- and microeconomic implications both for the state and municipal budgets and for a particular taxpayer should be taken into account when establishing the tax and determining its essential elements.