ESTIMATION OF EFFECTIVENESS OF FISCAL DECENTRALIZATION OF LOCAL BUDGETS IN UKRAINE

Abstract

The article  investigates the effectiveness of  fiscal decentralization of local budgets in Ukraine. The author reveals the major novations within the  fiscal decentralization legistation and the main aspects reformation within the budget and taxation areas. In 2015, revenues of local budgets increased: some taxes were transferred from the state budget to local and some new taxes were introduced

 Furthermore, the article shows how reform of local budgets has influenced the absolute indices of fiscal decentralization.

In 2015, there was an increase in local taxes by 235.2%. Payment for land became a local tax. This tax in 2015 amounted to 12.3%.  The increase in local budgets was influenced by the revenues from single tax in the amount of 3.5 bln. UAH. In addition, the excise tax on retail sales of excisable goods was secured on the level of local budgets. Its volume amounted to 7.7 bln. UAH. Among the negative aspects of the above-mentioned policy is the increase of the share of state budget revenues of Ukraine and the reduction of the share of local budgets in the revenues of  Consolidated budget Ukraine.

The author sums up by suggesting the ways to improve the process of fiscal decentralization  at local levels through the  adoption of new legislation in order to  increase the effectiveness of fiscal decentralization.