Methodical Set of Instruments for Estimating Financial Stability of Local Budgets in Ukraine

Abstract

Introduction. In Ukraine, substantial structural reforms have been realized for last years. The necessity to provide financial stability of local budgets sets up new demands for their management. In this way the problem of searching new methods and tools to estimate financial stability of local budgets under the conditions of decentralization becomes of a great importance. Research purpose is to extend the theoretical and methodical bases and to prove methodical set of instruments for estimating financial stability of local budgets in Ukraine. Results. It proves that in the sphere of modern science there are many problems connected with the methods for estimating financial stability of local budgets. Not all these problems have studied thoroughly. It proposes the set of instruments for estimating present financial stability of local budgets. This set of instruments includes the system of indices of present financial stability of local budgets: financial capability, financial autonomy, effectiveness, and debts obligations as well as indicating its integral index. It develops the accounting algorithm of these indices that outlines the order to analyse the dynamic information body of statistic data for estimating the groups of indices of financial stability of local budgets. It helps to characterize particular constituent elements of present financial stability of local budgets in Ukraine and to indicate its integral index. Conclusions. It develops the set of methodical instruments for estimating the level of present financial stability of local budgets that includes the system of indices and the algorithm of its calculation. The approbation of methodology for estimating the level of present financial stability of local budgets in Ukraine proved the possibility of its use for analyzing the financial stability of local budgets.

Вплив Фінансової Стійкості Місцевого Бюджету На Соціально-Економічний Розвиток Територіальної Громади

“…-бюджетну самостійність і платоспроможність; -здатність місцевих органів влади своєчасно забезпечувати фінансування покладених на них зобов'язань, зберігаючи свою фінансову безпеку в умовах додаткового рівня ризику [2].…”

Assessment of Financial Sustainability of Local Budgets in the Budget Management System Using Kohonen Maps

“…For this study local budgets were selected in the regional context (25 objects -regional budgets) and a set of indicators that comprehensively characterize the local budget and its financial stability. Indicators for assessing the financial stability of local budgets and determining their priority for clustering are chosen using algorithms of Kohonen neural networks due to the construction of the budget and tax system of Ukraine, the availability of publicly available information [22,31] as well as scientific approaches to assessing the financial sustainability of budgets in Ukraine in previous studies [3,16,19].…”

Assessment of financial sustainability of the local budgets: case of Ukraine

“…Some indicators, in particular those related to the maximum size of local borrowings, are fixed in the Budget Code of Ukraine. Researchers use many indicators to assess the financial sustainability of local budgets (Bondaruk et al, 2019;Korytko, 2008;Kostyrko & Velenteichyk, 2016;Starostenko, 2005).…”

“…It is proposed to study the financial sustainability of local budgets according to the following groups of indicators: indicators of balance, financial independence and budget efficiency, as well as the size of budgetary arrears (Vorobiov & Kohut, 2012;Dolozina, 2017;Kostyrko & Velenteichyk, 2016;Bondaruk et al, 2019). The indicators with the highest significance level are selected from each analysis group.…”