FINANCIAL DECENTRALIZATION AND ECONOMIC STABILITY OF KYIV: CHALLENGES AND DEVELOPMENT PROSPECTS

Анотація

Financial decentralization plays a key role in ensuring the economic stability of cities by enhancing the financial autonomy of municipalities, enabling efficient resource allocation, and mobilizing investments. The article analyzes modern approaches to financial decentralization, its impact on the stability of urban economies, and the main challenges faced by local authorities. The global experience of financial decentralization is examined, particularly models in Germany, the United States, and Scandinavian countries, allowing for an assessment of their potential application in Ukraine. The study highlights the specifics of decentralization reforms in Kyiv, analyzing the dynamics of budgetary indicators, tax revenues, expenditure structure, and investment attraction mechanisms. It is established that financial decentralization contributes to the development of small and medium-sized businesses, increases the transparency of financial flows, and ensures the stability of local budgets. Key threats are outlined, including the risks of excessive debt burden, corruption factors, and tax base instability. The article concludes that expanding alternative sources of municipal financing, such as bond issuance, public-private partnerships, and international financial programs, is essential. Practical mechanisms for strengthening Kyiv’s financial stability are proposed, including tax policy improvements, budget process digitalization, and investment activity stimulation. A comparative analysis of Kyiv’s budget policy with other European capitals has identified key areas for improving local financial management. It is determined that increasing the capital’s financial independence requires active investment attraction, the introduction of flexible tax instruments, and enhanced public control over budget allocation. The study’s findings can be used to develop strategic solutions in municipal financial management, optimize budget planning, and improve resource efficiency within the context of financial decentralization.

Класифікація

Ідентифікатори

Схожі роботи