Tatyana Paliichuk


Introduction. Nowadays, modern world wide tendencies of countries fiscal systems’ reformation are to solve the problem of achieving the optimal balance of income and expense authorization between central state and local governments, to form financial self-sufficiency of local government and to improve the system of intergovernmental transfers. A construction of an effective model of fiscal decentralization promotes stable socio-economic development. The quality of social services and the level of citizens’ welfare depend on the level of financial assurance and fiscal independence of local budgets, that can be achieved through a rational state finances’ management. Methods. Methodological basis of the article is represented by a complex of general scientific methods of theoretical (study and analysis of the latest researches and published works; usage of synergistic approach for social phenomena and factors) and empirical (synthesis, observation, study and generalization of certain practical experience) levels. The methods of comparative analysis, generalization, statistical techniques, graphical and tabular methods are used to assess the dynamics of income and expense of Ukraine’s united state and local budgets and their structure; to define the level of fiscal decentralization in Ukraine and in the countries of European Union. Processing of statistical data, analysis of the factors that influence their dynamics were done with the help of statistical and analytical methods. The basis of the analysis is statistical indicators of government agencies of Ukraine and international intergovernmental organizations. Results. The author suggests an indicator system of fiscal decentralization in the article, mainly two indicator groups: the first one is indicators of fiscal decentralization, that are defined on the basis of budgets’ income analysis; the second one is indicators, that are calculated with the help of statistical data about budgets’ expenses. A number of indicators is of universal international nature and can be used for comparison of decentralization levels of state finances’ management systems among different countries. The article reveals a process and summaries of assessment of fiscal decentralization level in Ukraine and the countries of European Union. An advanced statistical and analytical analysis of income and expense authorization among different levels of Ukraine’s budget system was done with the help of suggested indicator system of fiscal decentralization. Discussion. The key extension mechanisms of fiscal decentralization in Ukraine and the strengthening of financial selfsufficiency of local government are suggested and substantiated in the article.

Ключові слова

fiscal decentralization; tax and budget relations; local budgets; financial autonomy; tax autonomy; models of fiscal decentralization; intergovernmental transfers; local self-government; socio-economic development

Повний текст:



Derkach, M. I. (2011). Detsentralizatsiia fiskalnykh funktsii derzhavy u konteksti zabezpechennia staloho rozvytku Ukrainy: monohrafiia [Decentralization of fiscal functions of the state in the context of ensuring sustainable development of Ukraine]. Dnipro, Ukraine: Styl.

Hlukha, H. Ya., & Bondarenko, O. O. (2011). Osnovni pidkhody shchodo rozrakhunku rivnia fiskalnoi detsentralizatsii [The main approaches to calculating the level of fiscal decentralization]. Journal of Academy of Tax Service of Ukraine. Series. Economy, 2, 139-144.

Salo, T.V. (2013). Detsentralizatsiia finansovoi systemy: stan ta otsinka rivnia v Ukraini [Decentralization of the financial system: state and assessment of the level in Ukraine]. Effectiveness of public administration, 35, 324- 330.

Moussé Ndoye Sow, Ivohasina Razafimahefa. (2017). Fiscal Decentralization and Fiscal Policy Performance. IMF Working Paper, 17/64.

Hansjörg Blöchliger, Junghun Kim (2016). Fiscal Federalism 2016: Making Decentralisation Work. OECD Fiscal Federalism Studies.

Sambit Bhattacharyya, Louis Conradie, Rabah Arezki. (2016). Resource Discovery and the Politics of Fiscal Decentralization. CSAE Working Paper WPS., 5.

Monica Escaleras, Eric P.Chiang. (2017). Fiscal Decentralization and Institutional Quality on The Business Environment. Economics Letters, 159, 161-163.

Official website of the Ministry of Finance of Ukraine. Retrieved from

Official website of State Treasury Service of Ukraine. Retrieved from

Official website of the State Statistics Service of Ukraine. Retrieved from

Official website of the Eurostat Statistical Service of the European Union. Retrieved from

Creative Commons License
Ця робота ліцензована Creative Commons Attribution-NonCommercial 4.0 International License.

Ліцензія Creative Commons ГО "Науковий клуб "СОФУС"
Львівський торговельно-економічний університет
Подільський державний аграрно-технічний університет