Aspekti Publìčnogo Upravlìnnâ (Mar 2015)
Financial and economic support of territories in the context of decentralization
Abstract
The instruments of financial and economic support municipalities in the context of power and financial powers decentralization are studied. Ways and mechanisms for implementation of appropriate instruments in Ukraine’s economy are proposed. Is determined to local governments to use fiscal policy, not only as a source of direction and content of the municipal budget, but also as a flexible and effective lever to address the problem of increasing incentives innovative growth of the local economy. The implementation of reasonable scale interest rate differential taxation are considered. Important is the creation of municipal reserve funds and development funds. In this context, the need for a fundamental paradigm shift - to reconceptualize municipal structures in the context of local finance management system and decentralization. Local authorities should always spend limited funds with maximum profits. All decisions should be based on comprehensive analysis of factors feasibility and effectiveness of expenditure, costs of budget programs.
