• H. V. Voznyak SI “Institute of Regional Research n.a. M. I. Dolishniy of the NAS Ukraine” Kozelnytska str., 4, Lviv, 79026
Keywords: fiscal decentralization, municipalities, financial relations, local budgets


The purpose of the article was the coverage of the theoretical aspects of fiscal decentralization and clarification of the effects of Ukraine in the process of expanding the powers of local authorities regarding management decisions on the formation and use of budgetary resources. In the article the essence and role of fiscal decentralization, analyzes foreign experience. Systematized features of formation of financial relationships locally. It is shown that fiscal decentralization should not be limited to the redistribution of resources between levels of government, and should encourage local communities to build financial capacity and strengthen their self-sufficiency. Proved that fiscal decentralization in Ukraine not completed the following steps to start the process of strengthening the material and financial base of local communities must lie in the plane of the analysis results traversed phase of fiscal decentralization, identifying its strengths and contradictions, and the implementation of fiscal decentralization should be based on administrative territorial reform and a new philosophy of government

JEL: H 20

Author Biography

H. V. Voznyak, SI “Institute of Regional Research n.a. M. I. Dolishniy of the NAS Ukraine” Kozelnytska str., 4, Lviv, 79026

Ph.D, Senior Researcher


1. Lunina, I.O., Korotkevych, O.V., and T. P. Vakhnenko. Ukraine's public finances and its impact on economic development. Kyiv: NAN Ukrainy; Instytut ekonomichnoho prohnozuvannia, 2000. Print.
2. Uskov, I. V. Fiscal policy in the transforma¬tion of the system of local finance in Ukraine. Simferopol: ARIAL, 2012. Print.
3. Lysiak, L. “Conceptual foundations of fiscal policy in public spending.” Formuvannia rynkovoi ekonomiky v Ukraini 19 (2009): 358-64. Print.
4. Zymovets, V. “The structure of public ex¬penditure and economic growth: a theoretical perspective.” Ekono¬mika i derzhava 6 (2006): 17-20. Print.
5. Vrublevskyy, O. Reformuvanya terytorialnogo ustroyu ta mistsevogo samovryaduvanya. Kyiv: CSI, 2009. Print.
6. Kovbasyuk, Yu.V, et al. Local government in Ukraine: Current State and main directions of modernization Kyiv: NADU, 2014. Print.
7. Ukrainian dictionary. V.2, 1971. Print.
8. Payneko, Yu. Theoretical basis of self-government. Lviv: Litopys, 2002. Print.
9. Avalov, Z.D. Decentralization and self-government in France. SPb., 1905. Print.
10. Laryna, S.E., and P.A. Vysotskyy. “Models of the implementation of fiscal decentralization strategy.” Web. .
11. Oates, W. E. “Of the evolution of fiscal federalism: theory and institutions.” National Tax Journal 61.2 (2008): 313–34. Print.
12. Tiebout, Ch. “A Pure Theory of Local Expenditures.” Journal of Political Economy October 64.5 (1956): 416-24. Print.
13. Musgrave, R. The Theory of Public Finance. New York: McGraw-Hill, 1959. Print.
14. Oates W. Fiscal Federalism. N. Y.: Harcourt, Brace, Jovanovich, 1972. Print.
15. European Charter of Local Self-Government (1985). Web. <с>.