Development of the Fiscal Consolidation of Local Budgets of Regional Level

The article presents the results of fiscal consolidation of local budgets of regional level as a process of restructuring and balancing the specific interests of all entities of redistributive relations, optimizing and improving the structure of the revenue segment of territorial communities, and ensuring stable tax revenues through the improvement of the current taxation system. In order to increase the role of fiscal consolidation and filling local budgets of regional level in Ukraine, the timeliness of budget-tax reforms and their impact on the socio-economic development of the state have been substantiated. It is proved that the current model of taxation of corporate profits has exhausted itself, due to the reduction of entrepreneurial activity in the country, accumulation of losses of previous years, the availability of discretionary opportunities, corruption component, transfer pricing, foreign currency debt and other instruments of evasion. The methodological approach to developing an alternative model of fiscal consolidation of the local budgets of the region is presented by indicators of fiscal autonomy and fiscal significance of territorial self-government. The scientific and methodical approach to developing an alternative model of fiscal consolidation at the local level is presented by a system of indicators of fiscal autonomy and fiscal significance of territorial self-government. The empirical analysis was based on the fiscal rules of the consolidation of European countries that form the system-forming elements of the model of corporate income tax, providing a favorable fiscal space for business, motivating the effective use of budget funds by territorial communities. The target function of the optimization model, which determines the maximization of the fiscal consolidation index of local budgets, is proposed. Within the framework of the concept of fiscal consolidation of local budgets of the region, on the basis of European rules of fiscal decentralization, is mathematically substantiated the optimal scenario of the mechanism of implementation of the tax policy of the state, the target function of which is determined by the integral σ-index and β-index of fiscal convergence of local budgets of the regional level. Fiscal consolidation scenarios and their potential changes in Ukraine's GDP have been developed, subject to the introduction of exit capital tax, as an alternative form of income tax.