Interbudgetary transfers as an instrument of budgetary regulation
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 10, Issue
Abstract
Introduction. The main instrument of state regulation that allows you to use the positive aspects of decentralization and minimize the negative effects of decentralized use of certain powers, state financial assistance to lower level budgets, that is, intergovernmental transfers. The purpose is to determine the functioning of the system of intergovernmental transfers as a tool for budgetary regulation of economic development, analysis of trends and problems in the formation of local budgets after the reform of intergovernmental relations. Results. It has been substantiated that transfers are one of the forms of financing socio-economic development, a tool for its regulation, one of the sources for replenishing local budgets. It was determined that intergovernmental transfers in Ukraine is the main form of realization of intergovernmental relations and are aimed at balancing and equalizing the financial capabilities of the respective budgets. It is determined that almost all types of transfers are increasing every year. In particular, the value of social protection subventions in 2017 increased by 33 % compared to 2016, and four times compared to 2010. It is proved that the mechanical increase in the share of social transfers in the income structure does not have a proportional relationship with the degree of inequality in society. The imperfect policy of providing social transfers has led to the fact that social payments do not reduce, but, on the contrary, increase inequality in income distribution. Conclusion. It was determined that the need for intergovernmental transfers – additional funds transferred from the state budget to local ones, arises due to the inconsistency of the distribution of powers between the governing bodies and the distribution of revenue sources for their implementation. In the structure of local incomes, a significant part is accounted for by transfers, whose share in 2017 in total revenues was 56.4%. However, there is a trend towards an increase in the total volume of transfers. That is, the size of transfers increases every year, which shows the dependence of local budgets on additional funds from the state budget.
Authors and Affiliations
Oksana Anatoliivna Vinnytska, Liudmyla Andriivna Chvertko, Tetiana Oleksandrivna Korniienko
Keywords
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