FINANCIAL DECENTRALIZATION: ECONOMIC PREREQUISITES AND CURRENT CONDITIONS

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Visnyk LNAU: Economics of AIC 2021 №28: 57-61

FINANCIAL DECENTRALIZATION: ECONOMIC PREREQUISITES AND CURRENT CONDITIONS

Syniavska L., Candidate of Economics
ORCID ID: 0000-0002-2723-9551
Sholudko O., Candidate of Economics
ORCID ID: 0000-0003-2264-5638
Bohach M., Candidate of Economics
ORCID ID: 0000-0002-2710-4155
Lviv National Agrarian University

https://doi.org/10.31734/economics2021.28.057

Annotation

The article is a comprehensive study of the process of introducing financial decentralization. The article clarifies the essence of financial decentralization based on the analytics of the works of domestic and foreign scientists. It is proved that the decentralized form of the state system, the development of the municipal level of power will meet the requirements of the need to implement the preferences of citizens. In case of decentralized provision of public benefits, it would be fair to transfer powers on carrying out expenditures and mobilizing the necessary financial resources for their financing to the level of government, which covers the impairment of public benefits for consumers. Financial decentralization aims to ensure the adequacy of financial resources for the local self-government bodies to exercise their authorized duties. The theoretical and methodological aspects of the study of the decentralization process are determined. The importance of decentralization in the process of reforming local self-government is substantiated. The scientific approaches to the definition of the content and role of decentralization in a market economy are analyzed and generalized. The author evaluates the analytics, which indicates a significant volatility of the state transfer policy referring to the local budgets and prevents formation of high-quality and predicted budget policy. The researcher confirms impossibility to carry out medium-term planning of socio-economic development of territories, and reduction of the efficiency of funds use. The ways to improve the present stage of the decentralization reform are determined, in particular improvement of the regulatory framework.

Key words

decentralization, financial decentralization, local self-government, local budget, state budget, reform, regional development, economic growth, territorial community, local self-government bodies, public goods

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