The Formation of Financially and Organizationally Capable Bodies of Local Self-Government in Ukraine

Abstract

The article is aimed at identifying problems and defining ways of creating a system of capable territorial communities. For this purpose a systematization and analysis of the statistical materials, scientific researches of the current legislation and the conceptions of amending it are carried out. As a result, the imbalances in filling the local budgets are identified due to the excess of public transfers over the tax payments; further imbalances can be identified in the ratio of the local and the national tax payments (significant excess of the share of the latter). The authors substantiate inefficiency, low controllability of the system of territorial administration because of concentration of powers, administrative apparatus and financial resources in the State authorities and limitations of local self-government. A system of measures is defined that will ensure: a) formation of a new structure of self-government and the State administration bodies to ensure the financial and the organizational independence, efficiency of the local councils; b) increasing the share of local taxes in securing the needs of territorial communities. The indicated measures can be embodied in changes to the current legislation of Ukraine. This will ensure the efficient management of community economic resources to maximize the provision of needs of its members. Prospect for further research is to define the territorial organization and the desired structure of revenues for community budgets.

Keywords

• local administration
• local self-government bodies
• the State executive authorities
• territorial community
• taxes
• subventions