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{"id":20280,"date":"2025-06-01T11:22:30","date_gmt":"2025-06-01T08:22:30","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=20280"},"modified":"2025-06-01T11:22:30","modified_gmt":"2025-06-01T08:22:30","slug":"the-effect-of-decentralization-on","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/the-effect-of-decentralization-on\/","title":{"rendered":"Melnyk O., Krasnonozhenko V., Nesterchuk T. The Effect of Decentralization on the Formation and Use of Municipal Budgets of Ukraine"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification:<\/strong> \u041d11, \u041d61, \u041d73, \u041d77<\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V50(2025)-15<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Olha Melnyk,<\/strong> Candidate of Economic Sciences, Associate Professor of the Department of Finance, Banking and Insurance, Mykolayiv National Agrarian University, Mykolayiv, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0001-8639-7755<\/span><\/a>
\ne-mail: <\/strong>melnikoi@mnau.edu.ua<\/span><\/a><\/p>\n

Krasnonozhenko Vitaliia,<\/strong> Applicant of Higher Education, Accounting and Finan\u0441e Faculty, Mykolayiv National Agrarian University, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0002-7595-6539<\/span><\/a>
\ne-mail: <\/strong>kvo20082004@gmail.com<\/span><\/a><\/p>\n

Nesterchuk Tetyana,<\/strong> Applicant of Higher Education, Accounting and Finan\u0441e Faculty, Mykolayiv National Agrarian University, Ukraine<\/p>\n

ORCID ID:<\/strong> 0009-0001-6140-774X<\/span><\/a>
\ne-mail: <\/strong>tanjanesterthuk@gmail.com<\/span><\/a><\/p>\n

The Effect of Decentralization on the Formation and Use of Municipal Budgets of Ukraine<\/h2>\n

Abstract. Introduction<\/i><\/b>. An important task for the formation of public goods is to satisfy the needs of the population, therefore, for the best result, it is necessary to maximize the interest and activate the participation of citizens in the formation of local budgets and the management of funds. For efficiency from the economic side, financial decentralization should be carried out. As a result, spending powers are transferred and delegated, financial bases are created for local and regional self-government bodies, effective models of financial equalization are developed, and residents of the territorial community participate in solving local problems.<\/span><\/i><\/p>\n

Purpose<\/i><\/b>. Determine the essence of budget decentralization and to make an in-depth analysis of the impact of budget decentralization on the development of the region of the former Novobuz district, in particular, on new territorial communities (Novobuzsk MTG, Sofiivsk OTG and Vilnazaporizhsk OTG), with a focus on changes in income and expenses.<\/span><\/i><\/p>\n

Results<\/i><\/b>. The essence of decentralization was defined in the article. The influence of budget decentralization on the development of the region of the former Novobuzka district, in particular on new territorial communities (Novobuzka MTG, Sofiivska OTG, and Vilnozaporizka OTG), was considered and analyzed, with a focus on changes in income and expenses. The influence of decentralization on the structure of budget revenues and expenditures of the given region was also investigated on the basis of a comparative analysis. In addition, the main advantages and disadvantages of budgetary decentralization in Ukraine are indicated.
\n<\/span><\/i><\/p>\n

Conclusions<\/i><\/b>. In the process of decentralization, the central bodies ensure the independence of local bodies in the performance of their powers, functions and tasks, taking into account the needs and interests of the OTG, and also effectively use budget expenditures. The budget and tax systems must undergo fundamental reforms in order to adapt to new requirements and tasks, as well as to expand the number of funding sources at the state and regional levels in order to improve the efficiency of local budget management.
\n<\/span><\/i><\/p>\n

Keywords<\/b>: budget; decentralization; territorial community; income; expenditure.<\/span><\/i><\/p>\n

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

    \n
  1. Romanenko, O. R. (2003). Finances. Center for educational literature.<\/span><\/li>\n
  2. Buturlakina, T. O. (2010). Financial decentralization as a factor in the economic growth of regions. Scientific Bulletin of Uzhhorod University, 31.\u00a0 https:\/\/www.nbuv.gov.ua\/portal\/natural\/Nvuu\/Ekoii\/2010_31\/statti\/4_8.htm.\u00a0<\/span><\/li>\n
  3. Gurne, B. (1994). Public administration. Basics.<\/span><\/li>\n
  4. Kukartsev, O. (2007). Institutional mechanisms of regional policy: centralization and decentralization of power. Herald of the National University \u00abLviv Polytechnic\u00bb, 19, 102-108.<\/span><\/li>\n
  5. Verkhovna Rada of Ukraine. (2020) On the voluntary association of territorial communities. \u2116157-VIII https:\/\/zakon.rada.gov.ua\/laws\/show\/157-19#Text.\u00a0\u00a0<\/span><\/li>\n
  6. Verkhovna Rada of Ukraine. (2024) Budget Code of Ukraine. \u21162456-VI. https:\/\/zakon.rada.gov.ua\/laws\/show\/2456-17#Text.<\/span><\/li>\n
  7. Verkhovna Rada of Ukraine. (2024). Tax Code of Ukraine. \u2116 2755-VI. https:\/\/zakon.rada.gov.ua\/laws\/show\/2755-17#Text.<\/span><\/li>\n
  8. Novobuzky district. (2024). https:\/\/uk.wikipedia.org\/wiki\/%D0%9D%D0%BE%D0%B2%D0%BE%D0%B1%D1%83%D0%B7%D1%8C%D0%BA %D0%B8%D0%B9_%D1%80%D0%B0%D0%B9%D0%BE%D0%BD#cite_note-golos-1.\u00a0<\/span><\/li>\n
  9. Verkhovna Rada of Ukraine. (2023). About the formation and liquidation of districts. \u2116807-IX. https:\/\/zakon.rada.gov.ua\/laws\/show\/807-20#Text.<\/span><\/li>\n
  10. Open budget. (2024). Local budgets. https:\/\/openbudget.gov.ua\/local-budget?id=1410000000.<\/span><\/li>\n
  11. Melnyk, O. & Lisova, A. (2019). Prospective directions of financial support for development of united territorial communities. Efektyvna ekonomika, 12. https:\/\/doi.org\/10.32702\/2307-2105-2019.12.159.<\/span><\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 24 February\u00a02025<\/span><\/p>\n

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    Melnyk O., Krasnonozhenko V., Nesterchuk T. (2025). The Effect of Decentralization on the Formation and Use of Municipal Budgets of Ukraine. Modern Economics, 50(2025), 113-118. DOI: https:\/\/doi.org\/10.31521\/modecon.V50(2025)-15.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_column_text] JEL Classification: \u041d11, \u041d61, \u041d73, \u041d77 DOI: https:\/\/doi.org\/10.31521\/modecon.V50(2025)-15 [\/vc_column_text][vc_column_text]Olha Melnyk, Candidate of Economic Sciences, Associate Professor of the Department of Finance, Banking and Insurance, Mykolayiv National Agrarian University, Mykolayiv, Ukraine ORCID ID: 0000-0001-8639-7755 e-mail: melnikoi@mnau.edu.ua Krasnonozhenko Vitaliia, Applicant of Higher Education, Accounting and Finan\u0441e Faculty, Mykolayiv National Agrarian University, Ukraine ORCID ID: 0000-0002-7595-6539 e-mail:
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