Organization of interbudget relations in Ukraine on the principles of fiscal federalism
Journal Title: Публічне управління та митне адміністрування - Year 2018, Vol 2, Issue
Abstract
The research paper deals with the analysis of the current state of the regulatory and legal as well as the organizational and legal support of inter-budget relations in Ukraine. System analysis of the provisions of Chapter IV of the Budget Code of Ukraine “Inter-budget Relations” was conducted for the purpose of disclosing the essence of the mechanism of public administration of inter-budget relations. The author advocates the position that inter-budget relations are an instrument for the state regulation of the way and quality of budget execution at different levels. The research paper also reveals the goal of regulating inter-budget relations: ensuring financial equilibrium and an effective redistribution of public finances. It was also established that the main directions of implementation of inter-budget relations are the separation of expenditures between budgets; establishment of financial standards of budget provision; settlement of inter-budget transfers. Thus, the nature of these directions indicates that the legislator focuses on optimizing the distribution of finance rather than their use. Local self-government bodies, despite expanding their powers in the area of budget decentralization, do not use them to the appropriate extent in order to increase the level of budget revenues. Instead, they concentrate their own managerial attention on the accumulation of budget funds in the form of medical, educational and other subventions, which are guaranteed by the state. That is, the state actively participates in the inter-budget relations, which has a pronounced regulatory as well as organizational and administrative nature. In this case the position of local self-government bodies is limited, as a rule, to the accumulation of funds. The approaches to understanding the category of “budgetary federalism” are separately studied in the research paper from the point of state legal regulation of financial flows. It is established that budgetary federalism should be considered as a way of organizing relations on the redistribution of public finances between state authorities and local self-government bodies; as well as a system of interconnections regarding the organization of inter-budget relations between budgets of different levels that are elements of a hierarchical structure. At the same time, the system analysis of the provisions of the Budget Code of Ukraine demonstrates the existence of mechanisms for implementing inter-budget relations between the budgets of local self-government bodies. Local budgets can use channels to horizontally redistribute financial resources. At the same time, the research paper substantiates the necessity of administrative and legal provision of such relations through administrative contract. According to administrative contracts, inter-budget relations will have exclusively targeted character that will significantly increase the efficiency of the use of financial resources of the state. Under such conditions, the state loses the possibility of imperative influence on the process of distribution of funds, but has exclusively monitoring and control functions.
Authors and Affiliations
С. А. Дяченко
Keywords
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