Problems and directions of optimization of the UTC forming process: according to the results of the first stage of administrative and financial decentralization
Journal Title: Регіональна Економіка - Year 2017, Vol 86, Issue 4
Abstract
The article presents the study of the fiscal decentralization process in Ukraine at the level of local governance defined by this reform as basic – the level of newly formed UTC in terms of the first results, risks and challenges that occur in modern conditions. The features of administrative and territorial reform in Ukraine in the past and at present are researched. The position of communities’ forming in the reform of administrative and territorial structure of Ukraine is investigated. Amendments to the Budget Code of Ukraine and the Tax Code of Ukraine in the context of the administrative-territorial reform and the reform of fiscal decentralization are analyzed. The necessity of understanding the role and place of local communities in the development of local government is argued. The place and role of cities of oblast significance in the process of implementing the reform of the administrative-territorial system are determined. The notions of «urban agglomeration» are analyzed in the context of existing administrative territorial system. A conclusion is made that, despite lack of changes in the effective legal framework toward improvement of the administrative territorial system and absence of any proper agglomeration act, territorial communities must seek horizontal cooperation for the sake of their economic development and competitiveness. The measures to improve the territorial financial ability to implement the responsibilities granted to local government in the context of changes of administrative-territorial structure are proposed. The ways of strengthening the financial autonomy of municipalities are grounded. The necessity of achieving financial viability in order to accomplish the basic functions conferred on local authorities by the state is grounded. It is shown that the legislative innovations are not able to ensure decentralization. It is concluded that the community development at the local level is possible only when the correct public and local government policies are formed, basing on the fiscal capacity of communities.
Authors and Affiliations
Iryna Z. Storonyanska, Khrystyna O. Patytska
Keywords
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