State and prospects of income growth of local budgets of Ukraine

Volokhova Maya
candidate of economic sciences, associate Professor of the Department of Finance, Odessa National Economic University, Odessa, E-mail:maya.volokhova10@gmail.com, ORCID ID: https://orcid.org/0000-0002-5467-1411

Logvinovskaya Svitlana
candidate of economic sciences, associate Professor of the Department of Finance, Odessa National Economic University, Odessa, E-mail:fatini1976@gmail.com, ORCID ID: https://orcid.org/0000-0002-0670-2957

Cite this article:

Volokhova M., Logvinovskaya S. (2022) State and prospects of income growth of local budgets of Ukraine. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Stan ta perspektyvy zrostannia dokhodiv mistsevykh biudzhetiv Ukrainy; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 5-6 (294-295), pp. 7-14.

Abstract

The article is devoted to the theoretical and practical aspects of the formation of income of local budgets of Ukraine, their dynamics are analyzed, as well as these factors that affect these revenues. The main problems and shortcomings in the financial support of local self -government bodies are revealed. Taking into account foreign experience, ways to strengthen the revenue base of local budgets of Ukraine in the conditions of financial decentralization are proposed. Purpose. The purpose of the study is to determine the theoretical and practical foundations of the formation of local budget revenues in Ukraine, to substantiate problematic issues regarding their increase, as well as to develop proposals regarding their effectiveness and to increase revenues to local self -government bodies. Method. The scientific solution of the tasks in the article used methods: scientific generalization, financial analysis (in the study of the fiscal role of local budget revenues), analysis and comparison (in the analysis that come to local budgets of Ukraine) Results. According to the results of the study, it was established that the personal income tax is a significant source of replenishment of local budgets of Ukraine, proved that a limited share of own tax revenues to local self -government budgets was proved. The disadvantages and problems of forming the revenue part of local budgets, proposals for its strengthening and increase were provided. Practical importance. The results of this study, regarding the strengthening of local budget revenues, can be used by local self-government bodies and bodies of the State Fiscal Service of Ukraine at the legislative level in the tax and budgetary regulation of local self-government bodies, as well as the educational process of the Odessa National Economic University. The article lists the measures that will promote the revenue base of local budgets of Ukraine, namely: transfer of tax on income of individuals from national taxes to local; conducting differentiation of rates of personal income tax, depending on the wages and in general the financial capacity of residents of the respective territorial communities; strengthening of tax control on the declaration of income and expenditures of residents of territorial communities, through the mechanism of introduction of mandatory declaration of income at the state level; Increase in the list of local taxes and fees, through the mechanism of implementation of fees that will be intended, for example: fees for cleaning the territorial community, gathering for street lighting, collection for garbage disposal; establishment of the indexation coefficient of normative monetary valuation of land at the level of the real consumer price index to prevent the reduction of the revenue base of local budgets; establishment of a stable and more simplified legal framework of local taxation and others.

Keywords

local budgets, local budget revenues, tax and nontax revenues, local taxes and fees, intergovernmental transfers.

JEL classification: H710; DOI: 10.32680/2409-9260-2022-5-6-294-295-7-14

UD classification: 336.13

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