Fiscal security and decentralization in the conditions of global challenges and threats

IEFYMENKO, Tetiana; GASANOV, Sergіi; BARTOSH, Serhii

doi:10.33763/finukr2020.09.029

Cited by 4 publications

(1 citation statement)

References 9 publications

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“…Однак послідовне вдосконалення кількісних і якісних параметрів організаційної й управлінської діяльності підрозділів місцевого самоврядування протягом останніх років, зокрема стрімка динаміка формування структур громад, свідчить про певні успіхи розбудови в нашій країні оновленого територіального устрою влади. Водночас у цій сфері існує потреба у подальшому покращанні інституційного регулювання відповідно до стандартів ЄС" [18].…”

Section: податкова політикаunclassified

Property taxation: background of fiscal decentralization in Ukraine

IEFYMENKO¹

2022

Fìnansi Ukr.

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Fiscal decentralization has strengthened the capacity of governments to finance and provide public goods and services. Fulfillment of local government functions helps to balance the consumers’ individual preferences according to their needs. In Ukraine, each local authority should be entrusted with the management of the lands of relevant community in compliance with the principle of ubiquity as well as with the right to collect land tax. Local taxes on real estate and transport, typical for countries with capable local self-government, have also been introduced. Global challenges, international obligations, insufficient effectiveness of modern budgetary instruments of anti-crisis regulation make the improvement of property taxation necessary. Given new economic realities and the best world practice, it is necessary to reconsider the use of tools to support and stimulate regional development. The diversity of sources of payment and objects of taxation is one of essential problems in the collection of property tax. Its solution is the differentiated application of benefits, rates, deferrals, installments or to objects of taxation (according to the degree of participation of a property in the production process), or to entities (depending on their investment, social, environmental activity in the context of sustainable development). Such approaches are extremely important given the current trends of urbanization - their application will give the property tax an opportunity to perform the function of stimulating better use of funds and distribution of net income of enterprises and households in favor of budget revenues. Property taxes are progressive for those who have low incomes and can receive discounts when paying them. The spread of this approach during the post-crisis recovery of the national economy should be facilitated by the best practices of local authorities focused on the tax potential of SMBs. The main advantage of property taxes is a high degree of stability of the tax base. Further improvement of real estate taxation in Ukraine should focus on the prospects of its use in order to form stable sources of budget revenues and de-shadowing of property relations through the establishment of property owners. However, the risks of a low level of production incentives, as well as the understatement of the tax base through the transfer of property rights, still needs considering coordinated tax regimes for legal entities and individuals.

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Section: податкова політикаunclassified

Property taxation: background of fiscal decentralization in Ukraine

IEFYMENKO¹

2022

Fìnansi Ukr.

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State banks during wartime: key issues and response measures

BORTNIKOV¹,

LYUBICH²,

Hladkykh³

2022

Fìnansi Ukr.

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Introduction. Ukrainian banking system in general and state-owned banks in particular have faced a set of unprecedented threats, risks and challenges associated with the outbreak of open armed aggression against Ukraine. The negative consequences of hostilities were, in particular, the loss of physical access of banks and customers to some branches and payment infrastructure, the growth of defaults and the suspension of lending. Problem Statement. Improving the stability and reliability of the banking system through the intervention of the central bank and creating favorable conditions for business. Purpose. The aim is to analyze the consequences of the armed conflict on the banking sector and substantiate the list of measures to reduce or neutralize this impact. Methods. General and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical. Results. The actions of the Government and the National Bank in martial law were generally adequate, including measures to support the most vulnerable groups, reduce tax pressure on business, stimulate business activity by providing cheap loans under a number of government programs, comprehensive support for the banking system through the refinancing mechanism, mitigation of some regulatory requirements. The war made significant adjustments to the strategy of reforming state-owned banks. The structure of households\' funds also changed due to the sudden transformation of the pattern of their behavior. State-owned banks prefer to invest in treasury bills and NBU certificates rather than lending to customers. The main reason for the restrained growth of loan portfolios can be considered a decrease in demand for loans from reliable borrowers, and increasing credit risks. Conclusions. Banks with state capital have demonstrated their financial stability, have not experienced significant withdrawals from accounts, but have preferred to lend to large corporations or provide financial support to SMEs only through government programs of concessional loans. It is expedient to develop national loan restructuring programs together with the banking community, it is time to return to the idea of creating a full-fledged development bank in Ukraine on the basis of existing state-owned banks.

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Fiscal decentralization in Ukraine under martial law

PAVLIUK¹,

BARTOSH²

2022

Nauk. pr. NDFI

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The article examines the role of fiscal decentralization in Ukraine during martial law in ensuring the vital activities of the state. On the basis of foreign sources, it has been determined that decentralization is not a one-way process that has a linear character and leads to ambiguous consequences, although it generally has a positive effect on indicators of macroeconomic development. Scientists usually associate its success with the stabilization of the socio-economic situation, ensuring the high quality of local budgets and budget management, transparency of the budget process. It was found that decentralization in our country took place in the turbulent conditions of the hybrid war unleashed by Russia, as well as the global coronavirus pandemic. Despite this, positive results were achieved in strengthening the financial base of local authorities and self-government, and authoritative international organizations gave a high assessment of the decentralization process, including the fiscal one. The situation with the filling of local budgets during the war and the implementation of expenditures was analyzed, and the positive and contradictory consequences of the changes made to the relevant legislation were determined. The uncertain nature of the further development of events due to the impossibility of predicting the duration of active hostilities, the huge scale of destruction, the relocation of business, and the need for constant adjustment of the legal framework is emphasized. It was concluded that there is a need to develop a strategic document that would clearly outline all changes and innovations related to inter-budgetary relations and the relevant powers of local government and local authorities during the period of martial law. This would contribute to increasing the transparency of the budget process, would prevent the emergence of contradictions in the relations between central and local authorities and self-government.

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Fiscal security and decentralization in the conditions of global challenges and threats

Cited by 4 publications

References 9 publications

Property taxation: background of fiscal decentralization in Ukraine

Property taxation: background of fiscal decentralization in Ukraine

State banks during wartime: key issues and response measures

Fiscal decentralization in Ukraine under martial law

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