Respondent
Theme
Intergovernmental relations in the economic system of Ukraine
Defence Date
Annotation
Dissertation deals with the theoretical and methodological principles and
scientific development of recommendations for improving intergovernmental
relations and economic system of Ukraine. Theoretical and methodological principles
of intergovernmental relations are generalized and defined by the author.
Essence, functions, structure, characteristics and classification of
intergovernmental relations are specified in the context of modern theoretical
concepts. The methodological basis for their provision in terms of financial
decentralization is investigated. It proved that scientific differentiation of the
authorities’ spending powers at various levels, of financial sources, constant
monitoring of the intergovernmental relations’ current state are a prerequisite for an
effective system of intergovernmental relations in the country.
Some stages of the intergovernmental relations’ evolution in Ukraine are
highlighted and methodology of their research based on the concept financial cycle of
four-stage is proposed. It was found that the formation of inter-budgetary relations in
Ukraine historically been associated with the administrative-command system, and
the peculiarities of local government in the modern world are investigated.
Possible effect of Ukrainian budget system’s decentralization policy for the
regional social and economic development is evaluated in the thesis. The relationship
and effect of intergovernmental transfers on various types of local revenues and loan
portfolio of commercial banks are analyzed. The role of intergovernmental transfers
as a factor in the revival of credit activity in the economic system is defined.
The regression models to determine the impact of factors on regional financial
equalization system on intergovernmental relations in Ukraine and to forecast
performance measures of the fiscal adjustment are scientifically grounded and built.
The economic hypotheses that qualitatively show the relationships between the
indicators of intergovernmental connections system and the factors influencing them
are set as the basis modeling tools for relationships and interdependencies of
territorial fiscal equalization system of intergovernmental relations.
It is proved that the main goal of fiscal decentralization is to create a
relationship between the management system and the population, which requires the
strengthening of local government’s financial system. The objective of this system is
to provide local authorities certain powers in taxation and spending, and the ability to
determine the parameters and structure of expenditures. Fiscal decentralization would
expand the rights and powers of local and regional authorities on independent
decision-making and the formation of local budgets through self-bid taxes, fees and
benefits. As a result, local communities have their own sources of budget revenues,
namely stable sources of revenue and expand of their tax base. It revealed that legal
security to strengthen the local government’s financial autonomy is better to build on
the principles of fiscal federalism, namely by the organization of intergovernmental
relations in terms of independence and autonomy of each budget throughout the
country and guaranteed quality range of public services; It is necessary to distinguish
between budgetary authority, budget expenditures and revenues; to allocate and
reallocate budget resources between the state budget and the budgets of local
authorities, to align the budget provision of areas that are in different socio-economic,
geographical, climatic and other conditions despite the unitary system of government
in Ukraine. Concept for improvement of the functioning of local budgets, which will
facilitate the financial independence of local authorities, the implementation of
regional financial capacity, reducing disparities in socio-economic development of
administrative units, is developed. This is important because there is a lack of budget
revenues, which are designed to step up investment and innovation opportunities and
economic growth and encourage the mobilization of local revenues in Ukraine.
As a result of research proved that at the current stage of development of
intergovernmental relations in Ukraine the provision of effective management for
formation and use of local authorities’ financial resources is an important prerequisite
for sustainable development of the country, effective business entities, achieving of
macroeconomic and financial stability and the implementation Ukraine’s European
aspirations.
Keywords: budget system, economic system, budget policy, intergovernmental
relations, transformational change, institutional infrastructure, financial instruments,
local governments, local governments, budget development, fiscal decentralization