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LOCAL BUDGETS OWN RESOURCES AND DIRECTIONS OF THEIR INCREASING


The emphasis in the article is made on the limited capacity of local authorities to make decisions on the introduction of their own taxes and fees and high level of dependence from the State government decisions.

The analysis of local budget revenues was conducted on the data of 2008-2016 years with applying economic and mathematical methods of analysis, including correlation and regression analysis, structure shifts assessment, modelling and graphical analysis. On the result of analysis, the author defined the absence of significant changes in the structure of local budgets tax revenues both before and after the reform of decentralization, determined taxes that have the most influence on the local budget revenues and resources and, finally, built a regressive model of tax revenues of local budgets.

The author proposed ways how to increase the total amount of local budgets’ own revenues. They include both the improvement of taxation mechanisms of taxes that currently accumulated in the budgets at the local level (property tax, excise tax on retail, personal income tax, single tax) and changing the coefficient of personal income tax redistribution between different types of local budgets. The authors argue that personal income tax paid on the territory of administrative unit should totally remained in the budget of such administrative unit or amalgamated hromada. The simulation results showed a significant fiscal effect from the proposed changes for the amalgamated hromadas’ budgets that would create opportunities to increase fiscal capacity of local authorities in Ukraine.



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Keywords:  local budgets, own resources of local budgets, personal income tax, land tax, real estate tax.

THEORY

Filimoshkina Inna
SHEI «Kyiv National Economic University named after Vadym Hetman»

 

 

 

 

 

 

 

 

 

 

 

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