Influence of public finances on regional development: theoretical demention

Koliada Tetiana
Associate Professor, Department of Finance, National University of State Tax Service of Ukraine, E-mail:?

Cite this article:

Koliada T., (2015) Influence of public finances on regional development: theoretical demention. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11(231), pp. 75-89.

Abstract

The article is sanctified to determination of public finances influence on regional development and ground the theoretical approaches to the choice of model of intergovernmental relations in the conditions of the unitary state to improve the efficiency of public benefits and services at the regional level. Two basic theoretical models of financial relations between a center and regions are analyzed. The factors which influence on efficiency of grant of public benefits and services in a country are certain. An advantages of budgetary decentralization are justified. The theoretical foundations regarding the advisability of the distribution of competences (functions) and the division of tax revenues between levels of the budget system are analyzed. It is proved the correlation between the level of fiscal decentralization and economic growth. It proved the decisive role of fiscal decentralization, which promotes the participation of the regions in their own development contributes to improving the living standards of the population, provides equal access to state-guaranteed public goods and services across the country, creating the conditions for sustainable economic development of individual regions and countries generally.

Keywords

public finance, regional development, intergovernmental relations, budgetary decentralization.

JEL classification: О18

UD classification: 336.11

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