Assessment of the budget capacity of a region is an important tool for identifying its actual level as well as searching for reserves to build up and ways to solve local problems. The purpose of the article is to improve the methodological approaches to a comprehensive assessment of the region’s budget capacity. The purpose of the article is to improve the methodological approaches to a comprehensive assessment of the region’s budget capacity. The methodological approaches to assessing the budget capacity of the region, based on the implementation of four main stages and commissioning an analytical study in three areas (assessment of budgetary sufficiency of the region; assessment of budgetary efficiency of the region; assessment of budgetary independence of the region) are proposed in the article. Methodology for calculating the integral index of the region’s budget capacity is considered in the article. The types of budget capacity of the region according to the levels of budget sufficiency, capacity and independence are defined. The indicators of the region’s budget capacity grouped on three areas of exploration, which describe in details the level of budget capacity of the region in the context of decentralization, are systematized. To ensure a visibility of the obtained results, at the next stage, authors offer to make a graphical-analytical model of the region’s budget capacity based on the display of a triangle, the vertices of which will form the vectors of budget sufficiency, budget independency and budget efficiency. Further research should focus on forming an actual tools for increasing the budget capacity of the region.
Introduction. The defined strategic vector of Ukraine in the direction of forming partnership with the European communities requires from the regions the increased attention concerning a substantiation of financial policy through effective management. In the system of effective management, it is important for the financial authority to assess the capacity of the territory, outline the components to the ability to form a revenue base, take into account changes in budget and tax policies and strengthen the motivational component for development and development. Goal. Therefore, special attention needs to be paid to the development of a strategic model of financial management, which will move towards sustainable development, while systematically forming a resource, acting and responding through an efficiency multiplier. Method (methodology). Methods of theoretical generalization, grouping and systematization, logical generalization, graphic, modelling were used in the scientific search of the problem, which allowed to identify the problem and substantiate the results of the research in the system. Results. The strategic principles of financial management of territories in the conditions of budget decentralization are defined, which consist in definition of components of level of efficiency of financial management, construction of algorithm of collaboration in territorial management system and development of system strategy of financial management. Conclusions. A system strategy of financial management in the conditions of decentralization has been formed, which envisages outlining the structural guidelines of budget efficiency, determining the priority tasks of management for the respective region, taking into account its socio-economic specifics. It is substantiated that the strategy works through the components of the level of efficiency of financial management, principles and imperatives of continuous development, which ultimately provides a synergistic effect. It is determined that the symmetry of collaboration, parity, coherence and optimization provide a multiplier of budget efficiency.
The article is aimed at analyzing and assessing the level of budget efficiency of administrative districts of Volyn, thus allowing to identify the main factors influencing it and to offer balanced financial solutions for achieving the efficient formation and use of local budget funds in the conditions of decentralization. The article provides the authors’ own approach to assessing the level of budget efficiency of administrative districts of Volyn, based on the computation of a number of relative indicators in the context of three directions, namely: formation of income, distribution of expenditures, and use of funds. On the basis of computed relative indicators of budget efficiency, the integral indicator of budget efficiency in terms of income formation, distribution of expenditures and the use of funds is calculated, allowing to evaluate the efficiency of local budgets in different directions and identify administrative districts with the highest and lowest level of budget efficiency, as well as explain such differentiation. On the basis of the results of computation of integral indicators within three directions, the general integral indicator of the budget efficiency of administrative districts of Volyn was calculated, which made it possible to group the latter into groups with the highest, high, medium and low level of budget efficiency. As result of the carried out analysis and assessment of the level of budget efficiency of administrative districts of Volyn, significant factors of its provision are determined, which is the basis for the further development of balanced and substantiated managerial decisions.
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