THE PROSPECTS OF FISCAL DECENTRALIZATION DEEPENING IN UKRAINE

Abstract

The article is devoted to a study of the results of the 1st stage of a reform of tax decentralization in Ukraine in 2014-2016, on a basis of an analysis of an effectiveness of the major transformations that took place in the fiscal tax area and determining its impact on a further deepening of a fiscal decentralization, which is one of the priority directions of the implementation of the Government Strategy for Sustainable Development "Ukraine 2020".

The fiscal decentralization is closely linked to the process of reforming intergovernmental fiscal relations and has a direct impact on it. The author defines the main objective of the fiscal decentralization and considers its structure as an organic combination of constituent elements, the fusion of which allows to cover all economic areas that are affected by decentralization processes.

The author, based on the official reporting of the State Treasury Service of Ukraine, analyzed the results of an impact of the decentralization reform on the overall performance of local budgets on income. Statistics show that even after the 1st phase of the fiscal decentralization the main budget-forming taxes remain at the disposal of central authorities (corporate profit tax - 90%, VAT - 100%, rent payments - 50-75%).

However, the share of financial resources that local budgets receive from the state budget reaches 50%, that is, local authorities have half of the consolidated fiscal resources and can effectively manage it for the development of territorial communities. In the future to be expected that due to the available tools and interest from local governments in obtaining additional resources, the stake of local taxes and fees will also increase.

On an example of Dnipropetrovsk region was shown, that during the period of the reform aimed at increasing fiscal decentralization of the regions, the number of projects and objects financed from the regional budget has increased almost 9 times. In 2015, the number of these facilities was 67 and in 2017 already 596, which allowed to expand the financial capabilities of the region in order to maintain the proper state of infrastructure and strategic development of the region.

The author suggests using an integrated system that includes the main approaches and measures for increasing the efficiency of decentralization processes in Ukraine. Such a comprehensive system of approaches for the implementation of the fiscal decentralization closely intersects with a model of socio-economic development, creating the basis for its implementation in modern conditions.

According to the results of the study, the general conclusion was reached, that the fiscal decentralization in Ukraine as an instrument of the democratization of a society, increasing the efficiency of the administrative system and qualitative human development is the process objectively justified and necessary. The decentralization of local budget revenues allowed to create conditions for its effective filling and the decentralization of expenditures expanded possibilities of the local government to finance infrastructure and strategic development of the regions.

 At the same time, issues concerning the coordination of the interests of the central and local governments in the fiscal policy, as well as the responsibility of local self-government bodies in terms of revenues and expenditures financing at the level of territorial entities remain relevant.