Financial Decentralization in Ukraine and Its Prospects

• Main Author: Kovalenko Svitlana O.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2019-04-01
• Series: Bìznes Inform
• Subjects: decentralization; local budgets; united territorial communities; local government authorities
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2019-4_0-pages-300_306.pdf

The article is aimed at reviewing the main results of financial decentralization, estimating them, identifying the problems in the course of reform and developing ways to solve them. An analysis of the regional development is carried out, accentuating the main stages of the reform and the necessity of drawing up a perspective plan as the main document reflecting the vision of an efficient territorial structure of a certain region. Also the information about unification of the territorial communities for the period of 2015–2018 is analyzed, as well as data on the income of the budgets of the united territorial communities during the reform process. Both the positive and the negative aspects of reforming are considered. It is suggested to pay attention to the application of cluster approach to the organization of production; reducing unemployment in the regions; solving social and internal regional problems at the expense of their own incomes, taking into view the probable level of medium-term financial development of each region, and to establish the State supervision over the legality of decision-making by the local government authorities.