INTERGOVERNMENTAL RELATIONS IN CONDITIONS OF DECENTRALIZATION
Cite as APA style citation
Kanjeva T., Drepin A. Mizhbjudzhetni vidnosyny v umovah decentralizacii' vlady. Visnyk Kyi'vs'kogo nacional'nogo torgovel'no-ekonomichnogo universytetu. 2020. № 3. S. 50-65.
FREE FULL TEXT (PDF)
DOI: http://doi.org/10.31617/visnik.knute.2020(131)03
KANEVA Tetiana,
Ph.D. in Economics, Associate Professor, the Dean of the Faculty of Finance and Accounting
оf Kyiv National University of Trade and Economics
19, Kyoto str., Kyiv, 02156, Ukraine
E-mail: t.kaneva@knute.edu.ua
ORCID: https://orcid.org/0000-0002-3302-9593
DREPIN Anton,
postgraduate student of the Department of Finance
оf Kyiv National University of Trade and Economics
19, Kyoto str., Kyiv, 02156, Ukraine
E-mail: antdrepin@gmail.com
ORCID: https://orcid.org/0000-0002-7000-1274
INTERGOVERNMENTAL RELATIONS IN CONDITIONS OF DECENTRALIZATION
Background. There is a plethora of factors that affect the intergovernmental relations, e. g. institutional, social, economic, and administrative. The regulation of the institutions’ functional powers should be arranged regarding the necessity of the financial resources’ redistribution between the hierarchical components of the budgetary system, on basis of the principals of sufficiency, economy, efficiency and effectiveness.The aim of this article is to define the statements on the domestic intergovernmental relations’ improvement in order to regulate the administrative-territorial units’ social and economic development.
Materials and methods. This article’s theoretical and methodological bases are represented by the scientific works of domestic and foreign scholars. The systematic approach, methods of analytical estimation, synthesis, economic-mathematical modeling, and scientific abstraction were applied.
Results. The prospects for the intergovernmental relations’ further development in conditions of decentralization are suggested. The provisions on increasing the fiscal significance of local taxes, in particular the property tax, are substantiated. The territorial communities’ financial capacity criteria are investigated. The functional peculiarities of the intergovernmental transfers’ in Ukraine are determined. The propositions to increase the efficiency of investment grants, educational and medical subventions have been determined.
Conclusion. The intergovernmental fiscal relations’ development should be focused both on the public finances and fiscal discipline improvement. The incentives to expand the economic and tax bases of the territories should be provided as well. The sub-system of the local taxes, fees and contributions has a potential for strengthening the local communities’ financial capacity. Considering the above, it is important to improve those taxes’ quality of administration using the appropriate modern financial technologies. It is advisable to specify the indicators and criteria that are regarded, while the subsidies for social and economic development of the territories are allocated. In order to justify the mechanism for the conditional intergovernmental grants’ allocation, the national quality standards for public services should be taken into account.
Keywords: local budgets, budget decentralization, local budget revenues, local taxes, intergovernmental transfers, public services.
REFERENCES
- Aslim, E. G., & Neyapti, B. (2017). Optimal fiscal decentralization: Redistribution and welfare implications. Economic Modelling, 61, 224-234 [in English].
- Bahl, R., & Bird, R. M. (2018). Fiscal Decentralization and Local Finance in Developing Countries. Edward Elgar Publishing [in English].
- Baekgaard, M., & Kjaergaard, M. (2016). Intergovernmental grants and public expenditures: Evidence from a survey experiment. Local Government Studies, 42(2), 189-207 [in English].
- Kyriacou, A. P., Muinelo-Gallo, L., & Roca-Sagalés, O. (2017). Regional inequalities, fiscal decentralization and government quality. Regional Studies, 51(6), 945-957 [in English].
- Sacchi, A., & Salotti, S. (2017). The influence of decentralized taxes and intergovernmental grants on local spending volatility. Regional Studies, 51(4), 507-522 [in English].
- Chugunov, I. Ja. , Pavelk, A. V. , Kanjeva, T. V. et al. (2015). Derzhavne finansove reguljuvannja ekonomichnyh peretvoren’ [State financial regulation of economic transformations]. A. A. Mazaraki (Ed.). Kyiv: Kyi’v. nac. torg.-ekon. un-t [inUkrainian].
- Bjudzhetno-podatkova polityka u systemi reguljuvannja ekonomiky (2018) [Fiscal policy in the system of economic regulation]. I. Ja. Chugunov (Ed.). Kyiv: Globus-Press[inUkrainian].
- Pasichnyi, M., Kaneva, T., Ruban M., & Nepytaliuk, A. (2019). Theimpactoffiscaldecentralizationoneconomicdevelopment. Investment Management and Financial Innovations, 16(3), 29-39. DOI: 10.21511/imfi.16(3).2019.04[in English].
- Kuz’kin, Je. Ju. (2019). Finansove zabezpechennja fiskal’nogo prostoru miscevogo samovrjaduvannja [Financial support of the fiscal space of local self-government]. Harkiv: HNEU im. S. Kuznecja; PP "Tehnologichnyj Centr" [inUkrainian].
- Kul’chyc’kyj, M. I. (2015). Mizhbjudzhetni vidnosyny v ekonomichnij systemi Ukrai’ny [Intergovernmental relations in the economic system of Ukraine]. L’viv: LNU im. I. Franka [inUkrainian].
- Storonjans’ka, I. Z., & Benovs’ka, L. Ja. (2016). Bjudzhety rozvytku miscevyh bjudzhetiv: problemy formuvannja ta vykorystannja v konteksti poglyblennja finansovoi’ decentralizacii’ [Development budgets of local budgets: problems of formation and use in the context of deepening financial decentralization]. Finansy Ukrai’ny – Finance of Ukraine, 5, 34-47 [inUkrainian].
- Jushko, S. V. (2018). Rol’ miscevyh podatkiv i zboriv u formuvanni dohodiv bjudzhetiv miscevogo samovrjaduvannja [The role of local taxes and fees in the formation of local government revenues]. Finansy Ukrai’ny – Finance of Ukraine, 1, 72-87 [in Ukrainian].
- Tiebout, C. M. (1956). A pure theory of local expenditures. Journal of political economy, 64 (5), 416-424 [in English].
- Barro, R. J. (2001).Human Capital and Growth.American Economic Review, 91(2) [in English].
- Benos, N., & Zotou, S. (2014). Education and economic growth: A meta-regression analysis. World Development, 64, 669-689 [in English].
- Hanif, N., & Arshed, N. (2016). Relationship between School Education and Economic Growth: SAARC Countries. International Journal of Economics and Financial.Issues 6(1), 294-300 [in English].
- Hongyi, L. I., & Huang, L. (2009). Health, education, and economic growth in China: Empirical findings and implications. China Economic Review, 20(3), 374-387 [in English].
- Derzhavna sluzhba statystyky Ukrai’ny [State Statistics Service of Ukraine]. www.ukrstat.gov.ua. Retrievedfromhttp://www.ukrstat.gov.ua[inUkrainian].
- Ministerstvo finansiv Ukrai’ny [Ministry of Finance of Ukraine]. mof.gov.ua. Retrievedfromhttps://mof.gov.ua/uk[inUkrainian].
- Buchanan, J. M., & Musgrave, R. A. (1999). Public finance and public choice: two contrasting visions of the State. Mit Press [in English].
- OECDData. Retrieved fromhttps://data.oecd.org [in English].