Technological aspects of the mechanism of formation of local budgets in Ukraine for 2018-2020 years

The article proposes a way of determining the future directions of financial support for the social development needs. To this end, the Tintner method of consecutive differences is used. The practical application of this method allows for pre-selecting the best curve that describes the level of financial support for social needs. The model off inancial support for local self-government is determined. The adequacy of funding for the needs of local budget social development is analyzed. The share of expenditure of local budgets in Ukraine on health care, intellectual and physical development, education, social protection and social security is described. A number of challenges when it comes to financial support are considered, both from a theoretical perspective and those confirmed by actual calculations.

The sphere of local self-governance in Ukraine deals with a need for thorough researching and solving problems concerned with enhancing the effectiveness of financial and economic regulation of land relations on account of the expansion of the decentralization reform. The decentralization has led to gaining additional powers by bodies of local self-government. These powers entitles bodies of local self-government to ensure the increase of local budgets of newly-formed territorial units –united territorial communities – owing to carrying out financial transactions with land plots owned by local communities. In the process of research, the authors determine financial and economic efficiency of revenues of local budgets of perspective territorial communities by each region of Ukraine, taking into account variants of the normative monetary evaluation of land and the standard of capitalized rental income of agricultural lands located beyond their built-up areas. The authors substantiate an opportunity to create budget-forming sources of revenues for local budgets of perspective communities through the exercise of powers of bodies of local self-government regarding indicating the value of such lands and a right to lease, as well as terms of paying a single tax for the use of such lands for agricultural activity by taxpayers belonged to the fourth group of the simplified system of taxation.

The main purpose of this study is to introduce an integrated approach to the methodology of assessing the level of fiscal policy decentralization. It is proposed to evaluate the fiscal policy decentralization of the state according to three functional components: decentralization of the process of local budget revenues formation (includes five indicators); decentralization of local budget structure (includes six indicators); decentralization of intergovernmental budgetary relations (includes five indicators). The expediency of forming an integral indicator of the level of fiscal policy decentralization as the geometric mean of three sub-indexes formed by its main functional components is substantiated. It has been proved that the level of fiscal decentralization in Ukraine decreased at the end of 2017, compared to 2004, but was medium with acceptable risks of fiscal policy modernization. Instead, in 2014, the lowest numerical value of the decentralization level was recorded, which corresponded to the critical level of the integral indicator with significant obstacles to the modernization of fiscal policy. The results obtained confirm the feasibility of implementing the decentralization reform in Ukraine, which started in 2014, and demonstrate its effectiveness.