An integrated approach to assessing the level of fiscal policy decentralization
Open Access
- 12 February 2020
- journal article
- Published by LLC CPC Business Perspectives in Investment Management and Financial Innovations
- Vol. 17 (1), 49-63
- https://doi.org/10.21511/imfi.17(1).2020.05
Abstract
The main purpose of this study is to introduce an integrated approach to the methodology of assessing the level of fiscal policy decentralization. It is proposed to evaluate the fiscal policy decentralization of the state according to three functional components: decentralization of the process of local budget revenues formation (includes five indicators); decentralization of local budget structure (includes six indicators); decentralization of intergovernmental budgetary relations (includes five indicators). The expediency of forming an integral indicator of the level of fiscal policy decentralization as the geometric mean of three sub-indexes formed by its main functional components is substantiated. It has been proved that the level of fiscal decentralization in Ukraine decreased at the end of 2017, compared to 2004, but was medium with acceptable risks of fiscal policy modernization. Instead, in 2014, the lowest numerical value of the decentralization level was recorded, which corresponded to the critical level of the integral indicator with significant obstacles to the modernization of fiscal policy. The results obtained confirm the feasibility of implementing the decentralization reform in Ukraine, which started in 2014, and demonstrate its effectiveness.Keywords
This publication has 15 references indexed in Scilit:
- COMPLEX OF MODELS OF FINANCIAL DECENTRALISATION ANALYSIS AND ASSESSMENTFinancial and credit activity: problems of theory and practice, 2019
- Assessment of Fiscal Decentralization Influence on Social and Economic DevelopmentMONTENEGRIN JOURNAL OF ECONOMICS, 2018
- Horizontal equalization of regional budgets in the system of interbudget financial provision of regions of UkraineEconomies' Horizons, 2018
- Regional state capacity and the optimal degree of fiscal decentralizationJournal of Public Economics, 2018
- Fiscal decentralization and macroeconomic stability: the experience of Ukraine’s economyProblems and Perspectives in Management, 2018
- Fiscal Decentralisation and Regional DisparitiesOECD Economics Department Working Papers, 2016
- FISCAL FEDERALISM, DECENTRALIZATION, AND ECONOMIC GROWTH: A META‐ANALYSISEconomic Inquiry, 2016
- Fiscal decentralization and the size of government: a European country empirical analysisPublic Choice, 2009
- Decentralization and Fiscal Discipline in Sub-national Governments: Evidence from the Swiss Federal SystemPublius: The Journal of Federalism, 2007
- The Challenge of Fiscal Decentralisation in Transition CountriesComparative Economic Studies, 2006