Legal Regulation of Budget Decentralization in Ukraine

• Published in: Aspekty publichnoho upravlinni͡a Vol. 6; no. 10; pp. 37 - 46
• Main Author: Diachenko, S. A.
• Format: Journal Article
• Language: English; Russian
• Published: Grani 29.11.2018
• Subjects: bodies of local self-government; centralized funds of funds; expenditures; financial resources; fiscal decentralization; incomes; local authorities; normative-legal regulation; state administration
• ISSN: 2311-6420; 2413-8231
• DOI: 10.15421/151863

The article describes the legal regulation of fiscal decentralization in Ukraine. It was stated that fiscal decentralization is part of the complex, multi-level, system concept of “financial resources”, including a set of elements endowed with institutional characteristics. Being the material basis for the functioning of the state, most of the financial resources created by the distribution of national income are mobilized in state centralized funds of funds and other funds of financial resources that are objectively necessary conditions for the implementation of the process of expanded reproduction at all its stages and in all forms. The necessity of the study of fiscal decentralization, as a technology that conditions and reflects the general political and legal course of government, is substantiated. The content of decentralization, in its broad sense, which involves the transfer of more significant powers to local authorities, with the aim of making independent decisions on the formation of income, expenditure and regulatory and legal regulation is disclosed. It was concluded that the processes started in 2014 on financial decentralization, testify to the strengthening of the financial basis of local governments, increasing not only the revenue part of local budgets, but also the expenditure side. It was stated that, given the global tendency of political institutions to democratization, almost all domestic systems in different countries are seeking to strengthen the decentralization processes in certain areas of politics, the organization of public authority and government, and the livelihoods of local communities. Objectivity and compulsory decentralization processes in the implementation of the financial and security function of public authority have been clarified. It emphasized the desire of all modern highly developed countries to decentralize the maximum possible range of social facilities, including the decentralization of budgetary funds and powers. The same desire has recently been observed in developing countries and countries with economies in transition, which implement fiscal decentralization policies in order to change the ratio of the degree of influence of central and local public authorities on the macroeconomic situation. Provided specific proposals to the legislation to improve the management of financial resources and the predictability of local budget expenditures.