Assessment of the level of local budget financial decentralization: Case of Ukraine
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Author(s)Nadiya DekhtyarLink to ORCID Index: https://orcid.org/0000-0001-7932-8620
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Katarina ValaskovaLink to ORCID Index: https://orcid.org/0000-0003-4223-7519
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Olga DeynekaLink to ORCID Index: https://orcid.org/0000-0001-5852-4163
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Nataliya PihulLink to ORCID Index: https://orcid.org/0000-0002-9090-1763
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DOIhttp://dx.doi.org/10.21511/pmf.09(1).2020.04
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Article InfoVolume 9 2020, Issue #1, pp. 34-47
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Further improvement of financial relations at the local level and the development of local budgets take place in the context of financial decentralization. This implies strengthening the role of local governments in attracting necessary financial resources to ensure socio-economic development of territories. The purpose of this paper is to identify the impact of decentralization on the state of local budgets and to develop a scientific and methodological approach to assessing the level of financial decentralization of local budgets using the example of Ukraine for 2010–2019. The developed methodology consists of six successive stages. A comparative analysis of the dynamics of indicators of local budget execution in Ukraine in terms of revenues, expenditures and transfers using an integrated index obtained through taxonomic analysis is conducted. As a result of evaluating the effectiveness of the basic principles of financial decentralization, the expediency of calculating the integrated index of local budget financial decentralization is substantiated. This index is formed using intermediate indicators of autonomy to cover expenses and generate income both on the basis of own sources and taking into account the received state transfers for the implementation of their own and delegated powers of local governments. The implementation of the proposed method allow one to assess the levels of financial decentralization of local budgets to establish the degree of financial autonomy and financial self-sufficiency of the territories. The results obtained should be considered when determining the effectiveness of financial support for local budgets in the process of socio-economic development of regions.
- Keywords
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JEL Classification (Paper profile tab)H72, H79
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References20
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Tables2
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Figures7
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- Figure 1. A scorecard of local budget financial decentralization
- Figure 2. Algorithm for determining the level of local budget financial decentralization
- Figure 3. Comparison of local budget revenues and expenditures in Ukraine and the EU for the period 2010–2019 (surplus (+) / deficit (–))
- Figure 4. Dynamics of general indices of local budget decentralization in Ukraine and EU countries for 2010–2019
- Figure 5. Dynamics of the decentralization index of local budget expenditures in Ukraine for 2010–2019
- Figure 6. Dynamics of the index of local budget revenue decentralization in Ukraine for 2010–2019
- Figure 7. Dynamics of the level of local budgets’ financial sustainability in Ukraine by transfers for 2010–2019
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- Table 1. Generally accepted indicators of the state and development of local budgets
- Table 2. The level of local budget financial decentralization in Ukraine for 2010–2019, %
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Role of travel and tourism sector in the attainment of Vision 2030 in Saudi Arabia: An analytical study
Anis Ali ,
Anas A. Salameh
doi: http://dx.doi.org/10.21511/ppm.19(2).2021.23
Problems and Perspectives in Management Volume 19, 2021 Issue #2 pp. 276-290 Views: 2361 Downloads: 464 TO CITE АНОТАЦІЯTourism is the main service industry significantly developing in the world. It is recognized as the critical factor in economic improvement in various countries. Saudi Arabia is one of the oldest and most famous spots for pilgrimage tourism due to its Islamic heritage. The study analyzes data available on the websites of the Saudi government to specify the contribution of travel and tourism revenue to the economy and its trend, occupancy of residential, and transportation capacity. A tourism satisfaction questionnaire was administered online to get the responses of Saudi nationals and residents related to tourism infrastructure, facilities, and other tourism services in Saudi Arabia. Ranks and percentage analysis were applied to get the relational satisfaction of tourists. Index numbers, ratios, percentages, and coefficient of variations were applied to get the trend, yearly fluctuations, variations, weights, and contribution of tourism avenues. There is a positive but low degree correlation between tourism revenue and the GDP of Saudi Arabia for the period from 2010 to 2018. The results indicate either negative or negligibly positive revenue growth of the accommodation/hotel services, food services, and air transportation. Two-thirds of tourists are either strongly satisfied or satisfied with essential and other tourism services and facilities in Saudi Arabia. Apart from tourist satisfaction, the Saudi government may consider a variety of services as per the economic level of the targeted tourists, and softening of visiting visa procedures and fees to enhance tourism revenue of major contributors for the positive and progressive development to the economy.
Acknowledgment
The authors would like to thank the Deanship of Scientific Research, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia, for providing financial support to complete this project (Project No: 2020/02/16978). -
Fiscal decentralization and macroeconomic stability: the experience of Ukraine’s economy
Leonid Melnyk ,
Lina Sineviciene ,
Oleksii Lyulyov ,
Tetyana Pimonenko ,
Iryna Dehtyarova
doi: http://dx.doi.org/10.21511/ppm.16(1).2018.10
Problems and Perspectives in Management Volume 16, 2018 Issue #1 pp. 105-114 Views: 1749 Downloads: 309 TO CITE АНОТАЦІЯThe main objective of this research is to study the role and impact of fiscal decentralization on the macroeconomic stability of the country. The paper analyzes and systematizes approaches to the definition of ‘macroeconomic stability’ concept. The key factors that impact macroeconomic stability are identified. In the framework of this research, the authors identify fiscal decentralization as one of the factors affecting macroeconomic stability. To determine the strength and statistical significance of the above mentioned relationship, the authors suggest presenting macroeconomic stability as a functional dependency between macroeconomic stability and the level of fiscal decentralization, which is described by the following variables: the growth rate of money supply, investment and openness of the economy, fiscal decentralization. In this case, it is suggested to determine the level of fiscal decentralization in three directions: expenditure decentralization, revenue decentralization and expenditure decentralization simultaneously.
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Widening fiscal deficit in Maharashtra state: causes and concerns
Sanjay Rode
doi: http://dx.doi.org/10.21511/pmf.07(2).2018.05
Public and Municipal Finance Volume 7, 2018 Issue #2 pp. 48-65 Views: 1508 Downloads: 84 TO CITE АНОТАЦІЯMaharashtra is highly urbanized and economically developed state in India. But now the growth rate is declining, and debt burden has increased in the state. CAGR has been used to examine the impact of FRBM act on fiscal deficit in the state. The RBI data from 1991 to 2016 show that the primary and fiscal deficit is increasing fast. The revenue and capital expenditure are increasing after 2003 FRBM act. The debt burden has increased in the state due to interest payment, pension liabilities, seventh pay commission to state employees, farm loan waiver scheme and infrastructure projects. State government took loans from different sources to finance its capital expenditure. The least square regression result shows that development expenditure in the state has declined very fast. The expenditure on health, education and social welfare of scheduled caste and tribe has declined in the state over the period of time. Government must improve revenue and capital receipts within the short period. Efforts must be made to reduce the debt burden on the state. Therefore, a number of alternative policies are required to improve revenue and capital receipts. State government must increase taxes on electronic and tobacco-related products. Taxes must be increased on commercial vehicles, luxury hotels, entry tax at hill stations, malls and purchase of diamonds and gold, petrol and diesel. Such sources will increase tax revenue to state government and fiscal deficit can be reduced to some extent.
