FINANCIAL DECENTRALIZATION IN UKRAINE: CONSEQUENCES OF REFORM
Journal: International scientific journal "Internauka." Series: "Economic Sciences" (Vol.2, No. 41)Publication Date: 2020-09-30
Authors : Ignatenko Ruslana;
Page : 72-78
Keywords : financial decentralization; administrative-territorial reform; local budgets; own revenues of local budgets; united territorial communities;
Abstract
Ukraine's striving for European space is determined by goals and objectives. The Concept of reforming local self-government and the territorial organization of power in Ukraine, approved by the Cabinet of Ministers of Ukraine on April 1, 2014, caused by political processes that provide for financial decentralization. Decentralization is the transfer of significant powers and budgets from government bodies to local governments. Local self-government is when residents in cities and villages themselves decide most of the important issues, are themselves responsible for school and preschool education, first-level health care, cultural institutions, and amenities. That is, the main task of decentralization and unification of communities is to give the right to resolve issues to residents of cities and villages. The reform is designed to create a system in which the executive authorities and local self-government bodies can effectively perform their functions, and the communities themselves decide through elections how their region will develop. The article examines the process of decentralization of power and the formation of united territorial communities. The purpose of the article is a comprehensive assessment of the current state of the united territorial communities in the context of financial decentralization. Used general scientific and applied methods (historical, mathematical statistics, system comparison, structural and functional approaches to data analysis). The paper describes two stages of decentralization and their gradual implementation in Ukraine. The article analyzes the dynamics of the formation of united territorial communities, the process of forming their own financial resources of local governments. It has been proven that the reform gave impetus to the full development of communities, the opportunity to improve life in every locality and in the country as a whole. At the same time, there are a number of problematic issues that require solutions for the successful continuation of the reform. Based on the results of the analysis, the main recommendations are presented to ensure the effectiveness of the implementation of the administrative-territorial reform and the sustainable development of the local government reform.
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