PHYSICAL CAPACITY OF REGIONS IN THE CONTEXT OF BUDGET AND TAX DECENTRALIZATION
Hrechko Alla, National Technical University «Kyiv Polytechnic Institute named after Igor Sikorsky» (37, Peremogy Av., Kyiv, Ukraine).
The article investigates the impact of decentralization processes on the level of regions fiscal capacity and the selection of factors that hinder these processes. As a result of this study, the systemic impact of fiscal decentralization processes on the level of regions fiscal capacity was estimated. It is revealed that decentralization processes are an integral part of progressive states economic development. It is proved that the implementation of the concept of decentralization, including fiscal decentralization requires taking into account a number of factors that could adversely affect the outcome. First of all, they are determined by the existing problems of the tax, budget sphere and obstacles in the business environment of the country, which hinder the process of fiscal decentralization and reduce the fiscal capacity of the regions. It is proved that decentralization processes have a positive impact on the region fiscal capacity, provided a comprehensive approach to implementation. However, it is necessary to take into account such potential risks of fiscal decentralization implementation.
decentralization; fiscal decentralization; regions fiscal capacity; institutional barriers; budgetary sphere; tax sphere; risks.