Improved Financial Bases of Local Government in the Context of the Decentralization, Budget and Tax Policy of the State

Abstract

The development of modern municipal law in Ukraine is taking place on a qualitatively new level. The concepts of decentralization – deconcentration of state power including decentralization of finance are in the center of not only of political and legal discussions but also of practical realization of the results of doctrinal and other theoretical researches. The purpose of this article is to offer ways of solving the problems of legal regulation of introducing financial decentralization in Ukraine based on the analysis of legislation, to define ways to further improve the financial bases of territorial communities and the local self-government system. Methodology. In order to achieve our goal, we have applied general scientific methods like, first of all, the dialectical method of scientific cognition of real phenomena, as well as have emphasized its application in the study of local self-government in Ukraine. Special research methods are also determinative: the method of system analysis; system-structural – to establish the content of the categories and legal phenomena being studied, the formation of conceptual-category apparatus; rather-legal analysis, formal-logical, statistical, predictive and other methods. Scientific novelty lies in improving the theoretical understanding of the content of financial decentralization at local government level. Realization of the right to local self-government, realization and protection of legal interests of members of territorial communities, which are entrusted to bodies and officials of local self-government, require revision of priorities and directions of the state budgetary and tax policies in modern conditions, as well as implementation of financial decentralization for the benefit of communities and local residents. Conclusions. One of the directions of the modern municipal reform in Ukraine is the decentralization of state power, including its variety – financial decentralization. Based on the analysis of certain problematic issues: the creation and functioning of territorial communities as legal entities of public law, we have identified the prospects of improving their status, the financial and other bases of organization and activities of territorial communities. The study of correlation between the centralization and decentralization of state and government powers, the reform of inter-budgetary relations allowed formulating proposals for the improvement of the efficiency of institutional and regulatory mechanisms of the local self-government system activity, to continue financial decentralization in order to ensure socio-economic development of territorial communities in Ukraine.

Keywords: decentralization; territorial community; local government reform; politics; local budgets; local taxes; financial decentralization.