{"id":10845,"date":"2019-03-20T14:00:10","date_gmt":"2019-03-20T12:00:10","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=10845"},"modified":"2019-03-28T11:58:42","modified_gmt":"2019-03-28T09:58:42","slug":"horizontal-equalization-of-regional-budgets","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/horizontal-equalization-of-regional-budgets\/","title":{"rendered":"Boiko Svitlana, Hoshovska Valentyna, Hnatenko Olena Horizontal Equalization of Regional Budgets of Ukraine in Conditions of Decentralization"},"content":{"rendered":"

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JEL<\/strong> Classification:<\/strong> H 61, H 71, H 77, H 81.<\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V13(2019)-04<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_column_text]Boiko Svitlana<\/strong>, PhD (Economics), Associate Professor of the Department of Finance, National University of Food Technologies, Kyiv, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0002-1333-0397<\/a>
\ne-mail:<\/strong> svitlanaboyko@ukr.net<\/a><\/p>\n

Hoshovska Valentyna<\/strong>, PhD (Economics), Associate Professor of the Department of Finance, Accounting and Audit, National Transport University, Kyiv, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0002-5942-5690<\/a><\/p>\n

Hnatenko Olena<\/strong>, PhD (Economics), Associate Professor of the Department of Finance, National University of Food Technologies, Kyiv, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0002-6194-9338<\/a>
\ne-mail:<\/strong> gnatenko_elena@ukr.net<\/a><\/p>\n

Horizontal Equalization of Regional Budgets of Ukraine in Conditions of Decentralization<\/h2>\n

Abstract. Introduction<\/strong>. Excessive centralization of budget funds in the State Budget of Ukraine, the insufficiency of the revenue base of local budgets has led to the need for horizontal and vertical equalization technologies that require increased attention in the current conditions for the establishment of decentralization of power and the creation of financial basis for the activities of local governments.<\/p>\n

Purpose<\/strong>. The purpose of the study is to prove or refute the hypothesis of the existence and modification of interregional disproportions of the horizontal equalization of local (region) budgets and the analysis of their state in conditions of decentralization.<\/p>\n

Results<\/strong>. The specifics of the horizontal equalization of the region budgets of Ukraine with application of the equalization subsidies in 2011-2014 and the basic or reverse subsidies in 2015-2017 are discovered. Reporting data of the State Treasury of Ukraine on the size of horizontal equalization of region budgets are analyzed. The technology of cluster analysis by the Ward\u2019s method with squared Euclidean distances are applied and five clusters are formed.<\/p>\n

Results of cluster analysis in 2011-2014 and 2015-2017 are compared and made conclusions about the lack of correlation between the interregional differentiation of horizontal equalization of region budgets of Ukraine. The biggest changes are characteristic for the region budget of Donetsk and Chernivtsi regions. Region budgets, that moved to clusters with less basic subsidies include region budgets of Luhansk, Vinnitsa, Odesa regions. The region budgets, that have moved to clusters with larger of basic subsidies include region budgets of Zakarpattia, Volyn, Kirovograd, Rivne, Sumy, Ternopil and Chernihiv regions.<\/p>\n

Conclusions<\/strong>. According to the results of the study, the existence of interregional disproportions of horizontal equalization of region budgets of Ukraine and their strengthening in conditions of decentralization are\u00a0 proved. The basic subsidies from the State Budget of Ukraine received 18 region budgets in 2015-2016 and 17 region budgets in 2017 against the equalization subsidies of all region budgets in 2011-2014. Financial independence was characteristic of region budgets of Dnipropetrovsk, Donetsk, Zaporizhzhia, Kyiv, Odesa, Poltava and Kharkiv regions.<\/p>\n

Keywords<\/strong>: budget decentralization; basic subsidies; reverse subsidies; equalization subsidies; horizontal equalization; cluster analysis; region budgets.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. European Charter Of Local Self-Government. Retrieved from: http:\/\/zakon.rada.gov.ua\/laws\/show\/994_036 [in Ukrainian].<\/li>\n
  2. Cabinet of Ministers of Ukraine (2014). On Approving the Concept of Reforming Local Self-Government and Territorial Organization of authority in Ukraine (Decree No. 333-p, April 01). Retrieved from http:\/\/zakon5.rada.gov.ua\/laws\/show\/333-2014-%D1%80 [in Ukrainian].<\/li>\n
  3. The State Treasury of Ukraine (2014). Reporting by the State Treasury Service of Ukraine. Retrieved from https:\/\/www.treasury.gov.ua\/ua\/file-storage\/vikonannya-derzhavnogo-byudzhetu [in Ukrainian].<\/li>\n
  4. Bogolib, T.\u00a0M. (2016). Subsidies to local budgets as an instrument of financial equalisation. University Economic Bulletin<\/em>, 29(1), 282-287 [in Ukrainian].<\/li>\n
  5. Boiko, S.\u00a0V. (2016). Fiscal potential of local taxes and fees: cluster analysis of Ukrainian regions. Scientific bulletin of Polissia<\/em>, 3(7), 106-111 [in Ukrainian].<\/li>\n
  6. Buryachenko, A. (2011). Budget averaging in realization of state regional policy (Abstract of Ph.D. Thesis). Finances, Circulation of Money and Credit. Kyiv: National Economic University [in Ukrainian].<\/li>\n
  7. Voznyak, H. (2016). Fiscal equalization in the system of financial support of Ukraine\u2019s regions: the current state and vector of development. The problems of economy<\/em>,\u00a03, 24-30 [in Ukrainian].<\/li>\n
  8. Zabrotska, O.\u00a0V. (2011). Financial territorial equalization in the system of interbudgetary relations (Abstract of Ph.D. Thesis). Money, finance and credit. Lviv: Ivan Franko National University of Lviv [in Ukrainian].<\/li>\n
  9. Kozenko, A. (2014). Vertical equalization in conditions of budget decentralization in Ukraine (Abstract of Ph.D. Thesis). Money, finance and credit. Kyiv: Taras Shevchenko National University of Kyiv [in Ukrainian].<\/li>\n
  10. Kulchytskyi, M. & Zabrotska O.\u00a0V. (2015). Finansove terytorialne vyrivniuvannia v systemi mizhbiudzhetnykh vidnosyn [Financial territorial equalization in the system of interbudgetary relations]. Lviv: Ivan Franko Lviv National University [in Ukrainian].<\/li>\n
  11. Oparin, V.\u00a0M. (2015). Dominants and priorities of financial equalization in Ukraine. Finance of Ukraine, 6, 29-43 [in Ukrainian].<\/li>\n
  12. Shyshko, O.\u00a0V. (2009). Improvement of the fiscal equalization system in Ukraine (Abstract of Ph.D. Thesis). Money, finance and credit. Kiev: Financial Research Institute of Academy of Financial Management under the Ministry of Finance of Ukraine [in Ukrainian].<\/li>\n
  13. The Verkhovna Rada of Ukraine (2010). Budget Code of Ukraine (Order No. 2456-VI, July 8). Retrieved from http:\/\/zakon.rada.gov.ua\/laws\/show\/2456-17#n1540 [in Ukrainian].<\/li>\n
  14. The Verkhovna Rada of Ukraine (2014). On Amendments to the Budget Code of Ukraine on the Reform of interbudgetary relations (Act No. 79-VIII, December 28). Retrieved from https:\/\/zakon.rada.gov.ua\/laws\/show\/79-19#n429 [in Ukrainian].<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row disable_element=”no”][vc_column][vc_column_text]Received:<\/strong> 03 February 2019<\/p>\n

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    Boiko, S., Hoshovska, V. & Hnatenko, O. (2019). Horizontal Equalization of Regional Budgets of Ukraine in Conditions of Decentralization. Modern Economics<\/em>, 13(2019),\u00a025-32. DOI: https:\/\/doi.org\/10.31521\/modecon.V13(2019)-04.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<< Back to contents<\/a>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"

    [vc_row][vc_column][vc_row_inner][vc_column_inner][vc_column_text] JEL Classification: H 61, H 71, H 77, H 81. DOI: https:\/\/doi.org\/10.31521\/modecon.V13(2019)-04 [\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_column_text]Boiko Svitlana, PhD (Economics), Associate Professor of the Department of Finance, National University of Food Technologies, Kyiv, Ukraine ORCID ID: 0000-0002-1333-0397 e-mail: svitlanaboyko@ukr.net Hoshovska Valentyna, PhD (Economics), Associate Professor of the Department of Finance, Accounting and Audit, National Transport University, Kyiv, Ukraine
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