Martynenko V. Modernization of Ukraine's fiscal policy in the context of financial decentralization.

The thesis reveals the theoretical and methodological foundations of fiscal policy modernization. The relationship of financial decentralization with the fiscal policy of the state is determined. The methodology for forming a system of indicators for assessing the effectiveness of modernization of fiscal policy in the aspect of financial decentralization is substantiated. Structural and diagnostic characteristics of the state of fiscal policy at the level of Ukraine and administrative-territorial units are implemented. A study of the favourable conditions for paying taxes was conducted and the fiscal impact of the tax burden on the Ukrainian economy was assessed. The main directions of transformation of budget expenditures under the influence of financial decentralization are identified. The state of fiscal policy at the regional level is investigated. The article substantiates the peculiarities of rationalization of inter-budgetary relations in the implementation of fiscal policy in the context of financial decentralization. The place of tax rates in the system of dominant activation of budget revenues is determined. The Dupuy-Laffer curves and surface of direct taxes on corporate and personal income are constructed, for which tax rates are determined that provide the highest level of tax income of the state and administrative-territorial units in percentage of GDP. The assessment of the level of financial decentralization of the country has been improved by introducing an integrated approach. Methodological bases for assessing the state of regional fiscal policy in the context of financial decentralization through financial clustering are developed. Economic and mathematical modelling of the influence of macroeconomic factors on the tax sources of formation of state and local budgets is carried out. The main strategic directions of successful modernization of Ukraine's fiscal policy in the context of financial decentralization are developed based on long-term forecasting of the fiscal impact of the tax burden on the economy and taking into account the provisions of budget declarations. A systematic conceptualization of the modernization of the state's fiscal policy in the context of financial decentralization is formed by positioning its strengths and weaknesses, opportunities and threats, within which the purpose, principles and construct of modernization are defined through the differentiation and synthesis of its processes, key elements and objectivity of relationships between them.