Budget decentralization: socio-economic significance and its impact on local budgets

Abstract

The article explains the concept and the essence of budget decentralization, summarizes some changes in the budget legislation of Ukraine and the peculiarities of the introduction of budget decentralization at the present stage, the essence and the significance of the reform for Ukraine as a state with pro-European views. Positive and negative tendencies of budgetary and financial decentralization are characterized, the basic problems of the formation and the effective use of budgetary funds at the level of the regions, the sources of the incomes and the orientation of the expenses of the local budgets are investigated. The role of local taxes and fees in the filling of the local budgets, the dynamics of their growth compared to the previous years is analyzed. The main problematic issues that create risks for the systematic completion of the reform, including the reform of the administrative-territorial system, are identified, because despite of the positive dynamics and noticeable results of the reform in the direction of the unification of the territorial communities, a number of negative factors are presented.