A new paradigm for budget revenue distribution resulting from decentralization reform in Ukraine

Анотація

The implementation of the decentralization reform in Ukraine and its impact on the development of regions and territorial communities, the formation and implementation of local budgets impact the interests of state and local self-government bodies, business structures, and residents of newly formed communities. Problem Statement. The impact of the decentralization reform introduced in Ukraine on the formation of budget indicators and the distribution of funds between the state and local budgets. Purpose. The study of changes caused by the decentralization reform in the formation of the revenue part of local budgets, the distribution of revenues between levels of the budget system, the state of budgetary decentralization of funds, the significance of intergovernmental transfers and local taxes and fees in filling local budgets and their impact on the level of their financial autonomy. Methods. General scientific methods are used, namely: description, comparison, monographic, theoretical generalization. Results. The transformations of the budget and tax legislation of Ukraine carried out within the framework of the decentralization reform are characterized, and their impact on the formation of budget revenues is determined. Generalizing indicators were studied, which made it possible to assess the state of budget decentralization in Ukraine. The evaluation of changes in the role of interbudgetary transfers and local taxes and fees in filling local budgets, and their impact on indicators of financial autonomy of the latter, is given. Conclusions. The processes of unification of territorial communities as the first step within the framework of the decentralization reform in Ukraine affected the formation and volumes of the revenue part of local budgets, influenced their composition and volumes of expenditure. Budget and tax transformations had an ambiguous impact on local budget revenues, causing additional revenues on the one hand, and losses for various groups of budgets on the other hand. The indicators of budget decentralization calculated in the article unequivocally showed a reduction in the dynamics of the share of local budgets in the consolidated budget of Ukraine both at the stage of the initial allocation of funds and as a result of their final redistribution. At the same time, a significant change in the proportions of the distribution of resources between some groups of local budgets was recorded in the direction of an increase in the share of funds concentrated in the budgets of territorial communities and a decrease in the share directed to regional and district budgets. It has been demonstrated that changes in the absolute and relative indicators of interbudgetary transfers in local budget revenues are due mainly to the adjustment of approaches to the financing of some expenses, rather than to the strengthening of the income autonomy of local budgets. In the conditions of the growing role of local taxes and fees in the formation of local budget revenues, the risks of possible intervention of the central government in the processes of administration of the specified payments, adjustment of the rules for their calculation and payment remain relevant for local authorities. This may negatively affect the financial autonomy of budgets, endanger the proper and timely performance of the tasks assigned to it by the local self-government.

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