Kuzkin Y. Theoretical and methodological support of the fiscal space expansion within local self-governments in conditions of financial decentralization

The dissertation presents the author’s approach to solution of the important scientific and applied problem of expansion of the fiscal space of local self-governments under conditions of financial decentralization. The preconditions of formation of local self-government financial support, its components and sources are established herein. The preconditions for obtaining a true subjectivity in the fiscal area by local authorities as a part of the process of public finances decentralization and reforming of intergovernmental fiscal relations system in Ukraine are generalized. The theoretical substantiation of the essence is given and components of the financial decentralization process are defined in the context of streamlining the financial guidelines of the target direction of powers and competencies redistribution. The definition of the essence is proposed and the approach to structuring the fiscal space of local self-government is presented as a set of economic processes and economic relations localized within a certain territory. The world experience is generalized and the dynamics of budget autonomy according to levels of state power in countries with federative (confederative) and unitary state structure is researched. The generalization of the characteristics of content, financial content and conditions for implementation of various forms of state power decentralization (deconcentrating, evolution, delegation, and valuation) is conducted. The content and nature of interconnection between principles of state power decentralization and provision of fiscal autonomy of local self-government are determined. The authors hypothesis concerning the formation of theoretical and methodological basis for the local self-government fiscal space expansion in the conditions of financial decentralization is formulated. The theoretical basis of formation is systematized and the content of elements of the theoretical and methodological basis of the local self-government fiscal space expansion is determined in the course of financial decentralization implementation. The methodical approach of autonomy as well as the justification of financial decentralization measures taking into account the structural and regional aspects of differentiation based on the use of statistical and cluster analysis procedures to identify features of local budgets formation on different levels are developed. The regularities of changes in the state of structural and regional differentiation of local budgets are determined in the context of inter-budgetary relations reform and financial decentralization. The mechanism of interaction of the components of the local self-government system in Ukraine under the current conditions of carrying out the reform of the administrative and territorial system is considered. Provisions on financial justification for the feasibility of forming joint territorial communities in conditions of financial decentralization are formed. The directions and justification of the forms of rationalization of intergovernmental fiscal relations and the improvement of the practice of using the target forms of transfers to local budgets are determined. The approach to establishment of the classification system by types of intergovernmental transfers according to the purposes of use and terms of providing. The definition of nature of influence of structural construction, functions and income ability of the system of local taxes and fees on providing financial content for the basic models of local self-government is generalized. The substantiation of the scientific approach to the structuring of the mechanism and the development of methodological provisions on medium-term planning of local budgets in the context of expansion of the fiscal space of local self-government is given. Provision are developed for defining the priorities of targeted financing of programs and development projects at the state and local level. The sequence of economic substantiation and financial provision of budget expenditures in accordance with the priorities of state policy and local development programs is proposed. The advantages and limitations of the use of the program-target approach in the field of development of programs and projects of regional social and economic development, the financing of implementation of which is expected to be carried out at the expense of local budgets. Recommendations on the improvement of local borrowing regulatory mechanisms and addressing fiscal risks are developed. Proposed approaches to improve the methodological support of planning and control of implementation of budget and investment projects at the local level.