MODELING AND STATISTICAL ESTIMATION OF THE EFFICIENCY OF FINANCIAL DECENTRALIZATION OF UTC’s BUDGETS IN UKRAINE
DOI:
https://doi.org/10.31891/mdes/2022-3-18Keywords:
fiscal decentralization, budget revenues, budget expenditures, Indicators of efficiency, financial potential of local self-government, united territorial communities (UTC)Abstract
The priority area for the development of a democratic state is to ensure the well-being of every citizen. Given the current challenges and threats to the Ukrainian economy, achieving these priorities aims at building a domestic budgetary system with an emphasis on ensuring the organizational and financial capacity of local self-government and united territorial communities (UTC). That is why the issues of financial and budgetary decentralization come to the fore in the context of improving the effectiveness of the implementation of the budgetary policy in Ukraine.
The article aims to consider the problems of implementation of the decentralization reform in Ukraine and to assess the level of the efficiency of financial decentralization of UTC’s budgets.
The methodological basis of the research is the provisions of theoretical generalization, statistical analysis and modeling, and abstract-logical thinking in the process of forming theoretical and practical generalizations on the estimation of the efficiency of financial decentralization of UTC’s budgets in Ukraine.
The article highlights the importance of implementing the reform of the financial decentralization of UTC’s budgets. Therefore, the general principles of reform are studied, and financial-economic and social results of financial decentralization are analyzed. The conceptual model of an organization of the process of fiscal decentralization is proposed. The estimation of the efficiency of fiscal decentralization in Ukraine is carried out using a set of indicators, such as the indicator of decentralization by revenues, the indicator of decentralization by expenditures, and generalizing indicator of fiscal decentralization. The results calculated may be used in the decision-making while implementing the reform of financial decentralization of UTC’s budgets in Ukraine. It is concluded that the generalized indicator of financial and budgetary decentralization ranges from 30% to 42%, which corresponds to the optimal value of this indicator and thus characterizes the progressive economic development of the state while meeting many challenges and threats in implementing decentralization reform UTC’s budgets. The financial efficiency of decentralization reform is one of the most important components, as its results determine the organizational and social components, and hence the success of UTCs, regions and the state as a whole.
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