Information on the thesis

Dissertation  deals  with  the  theoretical  and  methodological  principles  and
scientific  development  of  recommendations  for  improving  intergovernmental
relations and economic system of Ukraine. Theoretical and methodological principles
of intergovernmental relations are generalized and defined by the author.
Essence,  functions,  structure,  characteristics  and  classification  of
intergovernmental  relations  are  specified  in  the  context  of  modern  theoretical
concepts.  The  methodological  basis  for  their  provision  in  terms  of  financial
decentralization  is  investigated.  It  proved  that  scientific  differentiation  of  the
authorities’  spending  powers  at  various  levels,  of  financial  sources,  constant
monitoring of the intergovernmental relations’ current state are a prerequisite for an
effective system of intergovernmental relations in the country.
Some  stages  of  the  intergovernmental  relations’  evolution  in  Ukraine  are
highlighted and methodology of their research based on the concept financial cycle of
four-stage is proposed. It was found that the formation of inter-budgetary relations in
Ukraine  historically  been  associated  with  the  administrative-command  system,  and
the peculiarities of local government in the modern world are investigated.
Possible  effect  of  Ukrainian  budget  system’s  decentralization  policy  for  the
regional social and economic development is evaluated in the thesis. The relationship
and effect of intergovernmental transfers on various types of local revenues and loan
portfolio of commercial banks are analyzed. The role of intergovernmental transfers
as a factor in the revival of credit activity in the economic system is defined.
The regression models to determine the impact of factors on regional financial
equalization  system  on  intergovernmental  relations  in  Ukraine  and  to  forecast
performance measures of the fiscal adjustment are scientifically grounded and built.
The  economic  hypotheses  that  qualitatively  show  the  relationships  between  the
indicators of intergovernmental connections system and the factors influencing them
are  set  as  the  basis  modeling  tools  for  relationships  and  interdependencies  of
territorial fiscal equalization system of intergovernmental relations.
It  is  proved  that  the  main  goal  of  fiscal  decentralization  is  to  create  a
relationship between the management system and the population, which requires the
strengthening of local government’s financial system. The objective of this system is
to provide local authorities certain powers in taxation and spending, and the ability to
determine the parameters and structure of expenditures. Fiscal decentralization would
expand  the  rights  and  powers  of  local  and  regional  authorities  on  independent
decision-making and the formation of local budgets through self-bid taxes, fees and
benefits. As a result, local communities have their own sources of budget revenues,
namely stable sources of revenue and expand of their tax base. It revealed that legal
security to strengthen the local government’s financial autonomy is better to build on
the principles of fiscal federalism, namely by the organization of intergovernmental
relations  in  terms  of  independence  and  autonomy  of  each  budget  throughout  the
country and guaranteed quality range of public services; It is necessary to distinguish
between  budgetary  authority,  budget  expenditures  and  revenues;  to  allocate  and
reallocate  budget  resources  between  the  state  budget  and  the  budgets  of  local
authorities, to align the budget provision of areas that are in different socio-economic,
geographical, climatic and other conditions despite the unitary system of government
in Ukraine. Concept for improvement of the functioning of local budgets, which will
facilitate  the  financial  independence  of  local  authorities,  the  implementation  of
regional  financial  capacity,  reducing  disparities  in  socio-economic  development  of
administrative units, is developed. This is important because there is a lack of budget
revenues, which are designed to step up investment and innovation opportunities and
economic growth and encourage the mobilization of local revenues in Ukraine.
As  a  result  of  research  proved  that  at  the  current  stage  of  development  of
intergovernmental  relations  in  Ukraine  the  provision  of  effective  management  for
formation and use of local authorities’ financial resources is an important prerequisite
for sustainable development of the country, effective business entities, achieving of
macroeconomic  and  financial  stability  and  the  implementation  Ukraine’s  European
aspirations.
Keywords: budget system, economic system, budget policy, intergovernmental
relations, transformational change, institutional infrastructure, financial instruments,
local governments, local governments, budget development, fiscal decentralization