Local Budget Revenues Research Articles

PERSPECTIVE DIRECTIONS INCREASING THE REVENUE OF LOCAL BUDGETS

This article is devoted to strengthening the financial independence of local budgets, in particular, to increasing the source of income, one of the important directions in the development of the budget and tax system. It is emphasized that increasing the revenues of local budgets and ensuring financial independence is a priority. analyzed the current state of the revenue base of local budgets and formulated conclusions and proposals for expanding the revenue base

Abolishment of a tax on imputed income: consequences for business and budget

The article purpose is to investigate changes of taxpayers in the simplified and patent taxation system, in the structure of tax revenues of regional and local budgets, in the tax burden on taxpayers that occurred in connection with the abolition of tax on imputed income (from 2021). The research used generally accepted methods of scientific cognition, such as analysis, synthesis, generalization, grouping, tabular method. The information base of the study was the Tax Code of the Russian Federation, official reporting data of the Federal Tax Service of Russian Federation, authors’ publications on the topic under study. The study obtained the following results. The tax revenues of local budgets decreased, having lost the source of income in the form of tax on imputed income, previously credited in full; the tax burden on taxpayers increased (when tax on imputed income was applied, it was minimal). The main conclusion of the study is the fact that the patent taxation system, which can be applied by entrepreneurs who have ceased to be payers of tax on imputed income, needs a radical transformation. It is necessary to improve the efficiency of such system in terms of determining the amount of income from which the cost of a patent is calculated.

The Impact of China's Urban Per Capita Disposable Income on Education, Culture and Entertainment Services

This study is from the perspective of China's cultural consumption, to study the impact of China's urban per capita disposable income on education, culture and entertainment service expenditure, with local financial budget revenue, consumer price index, regional GDP as control variables, so as to more accurate China's urban per capita disposable income on education, culture and entertainment service expenditure, Then explore how to expand China's cultural consumption in order to enhance the country's soft power. In this paper, the multiple regression model of economic variables and expenditure on education, culture and entertainment services is established, and the data of each year are found to form time series data, called panel data, and the necessary tests are carried out to obtain a more suitable and reliable model and the final regression results, which can provide direction for the government's economic policy.

ВИКОНАННЯ МІСЦЕВИХ БЮДЖЕТІВ У ПЕРІОД ВОЄННОГО СТАНУ: НОВІ ТЕНДЕНЦІЇ ТА ЗАКОНОМІРНОСТІ

Local budgets are one of the important components of the national budget system and the country as a whole. They have a significant impact on the solution of national tasks of an economic and social nature, including: financing of industry, energy, agro-industrial complex, infrastructure development, as well as the spheres of health care, education and social protection. The full-scale Russian invasion became a global challenge of modern times for Ukraine, which affected all economic processes of both the country and each individual component. Due to the military aggression of the Russian Federation, local budgets faced the problem of not receiving planned revenues, which became a threat to the implementation of the powers defined by the law. The article is devoted to the topical issues of determining the current state and peculiarities of the implementation of local budgets in the period of economic challenges. Implementation of the state budget for 2022 was analyzed. The growth of incomes, expenses and deficit is determined. The reason for this was military aggression, because foreign grants played a significant role in the formation of budget revenues in 2022, and the largest percentage of financial resources was directed to protection and defense. On the example of Lviv Oblast, the structure of local budget revenues and expenditures was analyzed, and changes in their volumes were considered. Attention is focused on the items of income and expenses that have experienced the greatest reduction and the reasons for the negative dynamics are investigated. Expenditures of local budgets most vividly reflect their importance in the functioning of the local economy, the maintenance of social and cultural objects, the implementation of investment policy, the implementation of social protection of the population, and environmental protection. They reflect the same socio-economic relations as the State budget expenditures, but at the local level and taking into account regional features. It is also highlighted that, despite difficult forecasted circumstances, local self-government bodies are working to attract and increase financial resources, create new jobs, and grow revenues to the budget. This, in turn, will make it possible to quickly adapt to new challenges and ensure the proper level of performance of assigned powers.

Main directions for forming budget income of different types of municipalities in the Russian Federation

This study is aimed at determining the main sources of income for local budgets of various types, their dependence on transfers. The analysis of the structure of the total and own revenues of the budgets of municipalities was carried out. For the period 2012–2021 revenues and their main components are determined in current and constant prices, which makes it possible to characterize the dynamics of the state of budgets for the specified period. The analysis of the structure of the main components of local budget revenues by types of municipalities identifies the dependence of urban districts, municipal districts, and settlements on income received as gratuitous transfers.

Analysis of tax revenues in the subjects of the Russian Federation

The article is devoted to the tax revenues that form the budgets of the subjects of the Russian Federation. On the basis of statistical data the analysis of tax revenues of regional and local budgets, which in turn are formed by the norms of deductions, declared at the federal level, as well as established by territorial units of the upper level. On the example of the Oryol and Tyumen regions the formation of the revenue part of their budgets in the context of taxes was analyzed. On the basis of the analysis the author has made a conclusion that sufficiently large losses of multilevel budgets have at the expense of receipt in a smaller volume of taxes from profit of the organizations in connection with application of privileges for unprofitable enterprises. The conclusion is made that in modern economic conditions this privilege requires revision.

GEOSPATIAL ASPECTS OF FINANCIAL CAPACITY OF TERRITORIAL COMMUNITIES OF TERNOPIL REGION

GEOSPATIAL ASPECTS OF FINANCIAL CAPACITY OF TERRITORIAL COMMUNITIES OF TERNOPIL REGION

Exploring the Level and Influencing Factors of Digital Village Development in China: Insights and Recommendations

Digital rural construction is an important strategy for rural revitalization. In order to improve the precision of digital rural measurement, a set of evaluation indicators for digital rural construction was devised in this study. The study uses the entropy method, kernel density estimation and system clustering to quantify the level of China’s digital rural construction, as well as the Tobit test and other techniques. From the perspective of time series evolution, the construction of digital villages grew continuously, with a peak in 2020. After that, the speed of digital village construction slowed down slightly because of economic changes in both domestic and international environments. In terms of dynamic evolution, the core density curve of China’s digital rural construction shifted to the right between 2011 and 2021, accompanied by gradient influence and a multipolar development trend; local general budget revenue, the per capita disposable income of rural residents, rural infrastructure investment, computer ownership per 100 rural residents, added value of primary industry, education level, and rural power generation are some of the factors that affect the development level of China’s digital countryside. This study is helpful in understanding the influencing aspects of China’s digital rural construction, thereby facilitating the formation of suitable digital rural development strategies in various regions depending on the real scenario.

A Study on the Impact of Fiscal Pressure on the Deviation of Local Government Budget Revenues

A Study on the Impact of Fiscal Pressure on the Deviation of Local Government Budget Revenues

Legal regulation of ecological rehabilitation of radioactively contaminated territories in Ukraine: problems and ways to solve them

Purpose. The purpose of the research is to identify the shortcomings of the current legislation of Ukraine in the field of ecological rehabilitation of radioactively contaminated territories, as well as to provide proposals for possible ways to overcome them. Methodology. The methodology includes a comprehensive analysis and generalization of the available scientific and theoretical material and the formulation of relevant conclusions and proposals. During the writing of the article, both general scientific methods of scientific knowledge and special-legal ones were used, including formal-legal, structural-functional, systemic and other methods. Results: in the process of research, it was established that the current legislation of Ukraine in the field of ecological rehabilitation of radioactively contaminated territories contains norms of a local nature, which determine the legal regime of the territories affected by the disaster at the Chernobyl nuclear power plant. At the same time, radioactively contaminated territories in Ukraine are the territories of former uranium mining and processing plants, tailings storage facilities (Dnipropetrovsk and Kirovohrad regions). Based on this, the expediency of supplementing the Law of Ukraine "On the Use of Nuclear Energy and Radiation Safety" with the section "Radioactively Contaminated Territories" was determined, the effect of which would extend to the entire territory of Ukraine. In addition, the article proposes to give the land plots on which uranium production waste storage sites, buildings and structures contaminated with natural radioactive substances, which due to their ecological danger cannot be used in economic activities, the legal status of those that are not subject to taxation, as well as to establish additional subsidies from the State Budget of Ukraine for the relevant local budgets in order to compensate for the loss of revenues of local budgets as a result of the exemption from taxation of land plots that are radioactively contaminated. Originality. The scientific novelty of the research lies in the possibility of using the obtained results for further scientific developments in the field of legal regulation of ecological rehabilitation of radioactively contaminated territories. Practical significance. The results of the research can be used in law-making activities with the aim of improving the provisions of the current legislation of Ukraine in the field of ecological rehabilitation of radioactively contaminated territories.

Economic justification of the differentiation of fees for the placement of nonstationary retail facilities by their location

The article offers an economic justification of the location coefficient used to determine the amount of payment for the placement of non-stationary retail facilities in buildings, structures or on land plots. The methods used in different cities of Russia for calculating fees for the place-ment of non-stationary retail facilities often do not have an economic justification for the indica-tors and coefficients used. This casts doubt on the correctness of setting the initial price (fee) for the placement of non-stationary retail facilities, becomes the basis for challenging charges and leads to losses of local budget revenues. In the course of the study, the analysis of factors influ-encing the formation of fees for the placement of non-stationary retail facilities, in general, and the location coefficient, in particular, was carried out. The economic justification of the calculation of the location coefficient as a key element of the payment for the placement of non-stationary retail facilities in the conditions of incomplete information on the local real estate mar-ket has been carried out. The location coefficient is proposed to be determined based on the indicators of remoteness and socio-economic condition of the city area, as well as taking into account the territorial differentiation of residential real estate prices. The method of calculating the coefficient of location of the object of non-stationary trade on the data of the city of Norilsk was tested.

INDIVIDUAL INCOME TAX IN UKRAINE: NATIONAL AND REGIONAL DIMENSION

The country’s tax system plays an important role in the formation of budget revenues at all levels and is the basis of the financial and credit mechanism of state regulation of the economy. Personal income tax is one of the most effective sources of income for Ukrainian budgets. However, the indicators of income from its payment have regional differences. The purpose of the study is to determine the fiscal role of personal income tax in Ukraine at the national and regional levels. Analysis methods were used to study the absolute and relative indicators of income from the personal income tax in the structure of the consolidated and local budgets of Ukraine; rating evaluation – for grouping regions of Ukraine according to relative indicators of tax payment; theoretical generalization – to form conclusions.
 The essence of the personal income tax has been revealed. The dynamics of its shares in the GDP of Ukraine, tax revenues to the Consolidated Budget of Ukraine are analyzed. A rating matrix of the grouping of regions of Ukraine according to the levels of tax shares in total revenues and tax revenues of the consolidated budgets of the regions was built.
 It was revealed that during 2019–2021, the share of personal income tax in the structure of tax revenues and revenues of the Consolidated Budget of Ukraine amounted to more than 20%; in the structure of tax revenues of local budgets – more than 60%. It was determined that in 2021, Mykolaiv, Vinnytsia, and Kirovohrad regions had clearly defined positions in terms of the levels of tax shares in the total revenues and tax receipts of the Consolidated budgets of the regions of Ukraine, all other regions fell into the zones of imbalances. Recommendations on improving the mechanisms of taxation of citizens’ incomes in Ukraine have been formulated.

МІСЦЕВЕ ОПОДАТКУВАННЯ: СУЧАСНИЙ СТАН ТА ДОСВІД КРАЇН ЄВРОПЕЙСЬКОГО СОЮЗУ

The paper examines the formation of local taxation system in Ukraine. It has been established that the number of local taxes and fees has been significantly reduced due to the evolution in the local taxation system. Currently the list of local taxes and fees comprises two local taxes, namely the property tax and the single tax, as well as two local fees including the tourist fee and the vehicle parking fee. It is determined that the basis for local budget revenues is formed by the tax receipts which tend to increase, with the simultaneous decrease in proceeds from state administration bodies. The personal income tax is considered to be the one having the strongest effect on the formation of local budget revenues. The analysis results determine that tax revenues from local taxes and fees have a growing tendency, however they are not budget-forming for the local budgets so far. The overall increase tax revenues to local budgets are observed from the property tax and a decrease in its component – transport tax. Local fees are proved to have a negligible effect on the formation of local budget revenues. It was determined that the local authorities have no power to lay local taxes and fees, preventing them to influence the amount of tax revenues to their budgets. The administration of local taxes and fees is negatively affected by the war, since real estate objects are exempt from taxation, and there observed a decline in the entrepreneurial activity. The insufficient work of local self-government bodies in attracting local taxation opportunities provided by the decentralization reform to strengthen the local budgets financial capacity has been substantiated in the study. It is proposed to strengthen the local self-government bodies’ role in the administration of local taxes and fees, in particular by giving them an opportunity to independently choose the objects of taxation on their territories.

The concept of the economic basis of local government and its organizational and legal security in the conditions of war in Ukraine

The article analyzes the concept of the economic basis of local self-government. In particular, it is stated that the determining importance in the content of this concept is its social orientation, which is related to the orientation towards meeting the needs of local residents. At the same time, the core of the economic basis of local self-government is the system of objects of the municipal economy - movable and immovable property, revenues of local budgets, extra-budgetary targeted (including currency) and other funds, land, natural resources that are communally owned by territorial communities.
 Also, the article emphasizes that the russian armed aggression in Ukraine, unleashed on February 24, 2022, led to colossal losses for the state's economy. As a result of hostilities, businesses and budgets of all levels are not receiving millions of hryvnias in revenue. In this regard, it is stated that it is extremely important to provide communities with more effective tools for filling the budget, one of which is the involvement of local self-government bodies in the administration of local taxes, which will contribute, subject to the implementation of relevant legislative initiatives, to the growth of tax revenues to local budgets at least for several hundred million hryvnias per year.In addition, the article focuses on the fact that the full-scale war launched by the Russian Federation significantly affected the development priorities of territorial communities in Ukraine, moving them from the plane of ensuring sustainable and effective economic development to the plane of guaranteeing security for its residents and economic "survival" . However, after the end of the active phase of the war, the authorities will face a difficult challenge regarding the rapid and effective reconstruction of the country, the recovery of the economy, and the continuation of the municipal reform that began in 2014. It was concluded that a very important and difficult task of the state and local authorities today, in the conditions of martial law, is to overcome the consequences of the Russian armed invasion, restore the destroyed industrial and other infrastructure, skillfully organize the work of the local economy and the communal sector of the economy on the basis of proper organizational, legal and material and financial support.

Fiscal function of taxes, its impact on budget revenues at various levels

Currently, in economics there is no single, well-established point of view on the number of functions performed by the tax. At the same time, all researchers are unanimous in their opinion that the main function is the fiscal function, according to which the revenue base of budgets of all levels is formed at the expense of taxes. All other functions: stimulating, regulating, etc. are closely related to the fiscal function. This function of taxes is used by the state in the development of tax policy at a particular stage of economic development. Based on official data, the article examines the impact of the fiscal function of taxes on the formation of budgets of the Russian Federation budget system for the period from 2006 to 2021. The author found that the state is currently pursuing a policy of fiscal federalism, which creates an imbalance in the revenue and expenditure parts of regional and local budgets.

WORLD PRACTICE OF MOTOR VEHICLE TAXATION

The tax on vehicles is classified as direct and is credited to local budgets. Its role in the revenues of local budgets of the leading countries of the world is constantly increasing, as the number of vehicles has a constant upward trend. Even with the destruction of transport and logistics chains in the world, the number of cars is growing due to the emergence of new types of vehicles. In the near future, a transport revolution is expected in the world. And this is due not only to the growing use of electric vehicles, but also to the introduction of non-traditional modes of transport into the public sphere.Also, the calculation of transport tax is constantly changing and improving all over the world. In a word, it has a dynamic behavior, unlike, for example, such a tax as the land tax. In this regard, a brief study of the transport taxation of the leading countries should be carried out.

FORMATION OF THE REVENUE PART OF THE LOCAL BUDGETS OF UKRAINE UNDER THE CONDITIONS OF THE MARTIAL LAW

Purpose. The purpose of the article is to study the structure and volume of revenues of local budgets of Ukraine during martial law, comparing them with pre-war indicators to determine possible additional sources of revenue at the level of local self-government. Methodology of research. In the research process, general scientific and empirical methods based on a systemic approach were used. The methods of statistical data processing and grouping were used to analyse the dynamics of tax and non-tax revenues of local budgets, as well as the method of system analysis. Findings. The article examines and analyses the dynamics and structure of revenues of local budgets of Ukraine under martial law. The negative impact of a full-scale war on the revenues of local budgets, in particular on non-tax revenues, revenues from capital operations and inter-budgetary transfers, has been established. To ensure the financial stability of local authorities, the authors proposed reserve sources of income, such as the employment of internally displaced persons, the creation of new jobs, including through the relocation of business entities, the elimination of shortcomings in the management of communal enterprises and their removal from unprofitability, more effective management of land resources, in particular, review of existing lease agreements, inventory, systematic land accounting, timely review of rent, formation of a base of tax payers for land, etc. Originality. This article provides a detailed analysis of the influence of martial law on the formation of the revenue part of local budgets of Ukraine, taking into account the latest statistical data and legislative changes. In addition, a number of reserve sources of income for local budgets are proposed, which can be used to ensure the stability of financial resources in the conditions of martial law. Practical value. The results of this study can be used for the development of effective mechanisms for the formation of the revenue part of local budgets in the conditions of martial law and ensuring the stability of finances at the local level. Key words: local budgets, revenues of local budgets, tax revenues, non-tax revenues, revenues from capital transactions, inter-budget transfers

Формування доходів місцевих бюджетів за умов бюджетної децентралізації

The article is aimed at defining the peculiarities of formation of revenues of local budgets of Ukraine under current conditions and providing proposals for further increase of financial capacity of local self-government bodies. The article highlights the methodology for calculating the tax autonomy of local self-government bodies, focuses on the need to strengthen the financial potential of territorial communities. The structure of the revenue side of local budgets of Ukraine during 2013–2022 is studied. It is found that under the conditions of decentralization, the highest share in the structure of local budget revenues belongs to tax revenues, their share has increased from 33.36% in 2015 to more than 60% in 2020–2022. In connection with the reform of the model of the State financial support for the healthcare sector, the medical subvention, which was credited to local budget revenues, was repealed. The implementation of this affected the reduction of the fiscal importance of inter-budgetary transfers – their share in local budget revenues decreased by more than 10 percentage points. Personal income tax revenues are characterized by the largest fiscal effect among tax revenues. The full-scale military invasion in Ukraine in 2022 led to a significant increase in the number of military personnel, which, together with an increase in the level of their monetary support, affected a significant increase in personal income tax revenues. Local taxes and fees are a certain indicator of fiscal autonomy of local self-government bodies, and given the above, it is important to realize their fiscal potential. The average value of the share of local taxes and fees in local budget revenues of Ukraine during 2013–2022 comes to 22.70%, and there is a tendency to increase the values of this indicator. The article substantiates proposals to increase the fiscal significance of property tax. In particular, this concerns the filling of the State register of real rights to real estate and the State land cadaster; timely and regular normative monetary valuation of land; transfer of certain functional powers regarding the administration of property tax (formation and sending of tax notices on tax payments; introduction of payment accounting) to local self-government bodies; improvement of institutional mechanisms of interaction between local institutions and tax authorities.

Features of the implementation of settlement transactions registrars in Ukraine: accounting and financial aspects

The article is devoted to the analysis of the peculiarities of the implementation of settlement transaction registrars in the activities of micro and small businesses, taking into account accounting and financial aspects. The purpose of the article is to study the problematic aspects of the implementation of settlement transaction registrars by individual entrepreneurs in the context of the fight against the shadow economy and the need to increase tax revenues to the budgets of various levels during martial law. Research methods. Empirical research methods are used in the article, which are based on a sociological survey of natural persons-entrepreneurs who are in the second-fourth group of the simplified taxation system for the purpose of determining the problems related to the introduction of PRO/PRRO in business activities; methods of systematization and grouping - for systematization of survey results; methods of generalization and abstraction - for formulating conclusions based on research results. Research results. On the basis of the analysis of the legal requirements for the introduction of the PRO/PRRO and taking into account the results of the conducted sociological survey of individual entrepreneurs, the article proves that one of the main problems of the hostile attitude towards the requirements for the implementation of the PRO/PRRO is the lack of a sufficient level of accounting and digital education, low the level of public trust in the authorities and tax authorities, mental models and reluctance to disclose real business turnover. In order to ensure the mass use of PRO/PRRO to increase the level of income of budgets of various levels and improve the efficiency of business processes, the article proposes to develop special training courses for entrepreneurs on the Diya portal, as well as to increase fines for violations of the use of PRO/PRRO to such a level that would make unfavorable non-payment of a single tax. In the case of establishing the PRO/PRRO and its stable use, the revenues of local budgets from the single tax will be able to increase by UAH 10-15 billion.

ПОДАТОК НА МАЙНО ЯК ДЖЕРЕЛО ФОРМУВАННЯ ДОХОДІВ МІСЦЕВИХ БЮДЖЕТІВ

The article defines the role of property tax in the formation of revenues of local budgets under martial law. The share of property taxes in GDP in Ukraine and in leading foreign countries is analyzed. The factors affecting the receipt of property taxes to local budgets are outlined. The fiscal role of the property tax in tax revenues and local budget revenues over the past 5 years has been revealed. The dynamics of the structural components of the property tax in the period from 2018 to 2022 were analyzed, namely the property tax other than the land plot, the land fee and the transport tax as sources of revenue generation for local budgets. The consequences of changes made to the Tax Code of Ukraine during the period of martial law regarding property taxes in Ukraine are highlighted. Problematic aspects and shortcomings in the field of revenue generation of local budgets due to property tax in terms of its structural components were identified and directions for their elimination were proposed. The directions for eliminating the identified problems are substantiated, including the following: development of a mechanism for the population to restore the car fleet in order to increase the tax base with transport tax in the future; increasing the interest of OTGs with a higher level of their own incomes in increasing revenues from real estate tax payments; timely and complete consideration of information and its entry into the State Register of Property; taking into account the territorial location of real estate for taxation purposes; granting the right to local authorities to take into account the level of income and marital status for the purposes of collecting real estate tax; not only expensive cars, but also other mass-demand vehicles should be considered tax objects; additionally use the volume of carbon dioxide emissions, etc., as the tax base for transport tax. It has been established that in order to eliminate the identified problems and deficiencies in the functioning of property taxation and increase its fiscal role in the revenues of local budgets in the war and post-war periods, it is necessary to apply a comprehensive approach to solving a number of institutional, organizational, legislative and regulatory, material and technical, personnel, process, financial, strategic and other issues.