Local taxes as a source of filling the local budget in the conditions of decentralization

Abstract

Active policy of the state in the sphere of budgetary decentralization, in the context of the formation of incomes of local budgets in Ukraine, gave its first positive results. It has been established that the first year of introduction of budgetary decentralization had a positive impact on the volume of revenue generation of local budgets, which created the basis for full financial independence of the latter. In the course of theoretical research, general scientific methods have been applied. The analysis of actual incomes of the general fund of local budgets and dynamics of volumes of gross national product (nominal) as a whole and per capita has been carried out. It has been established that due to the innovations in the Tax Code in terms of changing the list of local taxes and fees, as well as approaches to their administration, budgetary decentralization in the first year of implementation significantly increased the financial viability of local budgets. It has been determined that budgetary decentralization increased the powers of local authorities, influencing the revenue base of local budgets, ensured not only independence in the financial area, but also created conditions for the further development of administrative and territorial units through the prism of introducing incentives for the growth of social and economic indicators ensuring well-being of territorial communities. Although this topic is not new, but its practical value does not cease to decrease. Unfortunately, due to mismanagement and significant corruption, the introduction of decentralization has not been given all the opportunities for the development of regions that we can observe in European countries where there is a significant experience of local policy. The directions of further increase of local budgets incomes by introducing transparent steps in the context of budgetary decentralization, fiscal liberalization and transfer policy have been outlined. The scientific novelty of the research is that budgetary decentralization has its first results, so there is a need to study and analyze the first results, ways to improve indicators. In further studies, the effectiveness and appropriateness of certain types of local taxes will be analyzed, as well as methods for more efficient distribution of taxes in the field.