№ 3/2016

№ 3/2016

Nauk. pr. NDFI 2016 (3): 39–53

LOCAL FINANCE

KUZKIN Yevhen ¹

¹State Agency of Motor Roads of Ukraine
OrcID ID : https://orcid.org/0000-0002-6790-8238

Decentralization impact on regional development

The author studies international and domestic experience of the impact of decentralization on economic growth, public finance flows and the formation of the tools of state regulation of regional development. The Strategy for Sustainable Development “Ukraine 2020” identifies as priorities decentralization and public administration reform on the basis of the rejection of centralized management model, the formation of territorial authority structures, subsidiarity and financial sustainability of local government. The author further develops scientific and conceptual apparatus of “decentralization”, its constituent concepts (economic, political, administrative, geographic, fiscal), its benefits, key issues, implementation risks and models of state influence on economic growth and provides suggestions as to the application of developments in Ukraine to overcome the destabilization of regions and the economy as a whole. The current state of the budget decentralization in Ukraine, the structure of the actual performance of the consolidated expenditures of local budgets and specified ratios of fiscal centralization and decentralization, advances on the transfer of powers and resources to the local level are given thorough analysis. It is established that not all local budgets received significant tax sources and required volume of revenues, remaining subsidized. The author identifies best practices for modeling the impact of fiscal decentralization on economic growth in the regions of an individual country and proposes a system of variables for calculations in Ukraine, as well as stages of fiscal decentralization in Ukraine.

Keywords:fiscal decentralization, the state budget, local budgets, the structure of expenditure, local governments, local communities, government regulation.

JEL: H61, H71, H72, H76.

Kuzkin Y. . Decentralization impact on regional development / Y. . Kuzkin // Наукові праці НДФІ. - 2016. - № 3. - C. 39-53.

Article original in Ukrainian (pp. 39 - 53)

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