Principles, Economic and Institutional Prerequisites for Fiscal Decentralization under Conditions of Post-Conflict Reconstruction

• Main Authors: Vishnevsky Valentine P., Rekova Nataliia Yu.
• Format: Article
• Language: English
• Published: PH "INZHEK" 2016-11-01
• Series: Problemi Ekonomiki
• Subjects: principles; prerequisites; fiscal decentralization
• Online Access: http://www.problecon.com/export_pdf/problems-of-economy-2016-4_0-pages-183_189.pdf

The aim of the article is to study principles, economic and institutional prerequisites for fiscal decentralization on post-conflict territories. It is determined that fiscal decentralization is one of the main ways to solve problems of post-conflict areas. There justified principles, economic and institutional prerequisites of fiscal decentralization on post-conflict territories with regard to the specificity of individual spheres of fiscal relations. Moreover, different spheres of fiscal relations require different approaches: the sphere of public revenues — providing economic efficiency with the formation of the tax structure contributing to the expansion of the tax base; the sphere of public spending — ensuring social justice and transparency in allocation of social cost at the local level; the sphere of subsidies — narrowing the scope of application of intergovernmental transfers with organizing the redistribution of financial resources under the principle of «center - post-conflict regions - post-conflict recipients»; the sphere of external assistance — ensuring proper coordination for cultivation of new co-operative institutions.