TERRITORIAL AND FISCAL DECENTRALIZATION IN UKRAINE: PRACTICAL RESULTS

Abstract

The article reveals the major issues of practical results of territorial and fiscal decentralization in Ukraine. On the basis of methodological research the essence of the legal forms of decentralization is defined. It is determined that the practical result of territorial decentralization is ensuring the establishment of new capable territorial communities, which are also called unified territorial communities. While the practical result of fiscal decentralization is the growth of financial sustainability of unified territorial communities, and the opportunities of bringing in new financial resources. In the process of territorial decentralization, local self-governments receive more powers and the right to make their own decisions on the use of financial resources of the unified territorial community. When developing investment projects, the probability of attracting additional funds from the State Fund of Regional Development increases due to fiscal decentralization.

Thus, summing up the analysis of the practical results of territorial and fiscal decentralization, it is important to emphasize the major successes and financial benefits of this reform. Territorial decentralization ensured the establishment of unified territorial communities that have received the empowerment and autonomy in decision making regarding the use of the development budget. Fiscal decentralization has provided a significant increase of own revenues to local budgets and budgets of unified territorial communities (UTC). Its budget component became the basis for improving intergovernmental fiscal relations, and strengthened the financial independence of local budgets along with increased accountability of the participants of the budget process. Fiscal and territorial decentralization within the framework of establishing the budgets of unified territorial communities (UTC) provided a significant increase in their incomes, the possibility of attracting other centralized budget funds, which in turn will lead to improved socio-economic development of localities, which are parts of unified territorial communities (UTC).