Budget decentralization and its influence on the social and economic development of Ukrainian regions

Abstract

The article generates the main results of the first stage of decentralization reform in Ukraine during the period from 2014 to 2018. The aim of the article is to analyze the process of decentralization in Ukraine, highlight the revenues and expenditures of local budgets and justify the need to create a development strategy for Amalgamated Territorial Communities (ATC). Considering the given indicators it is proved that the goal of ensuring financial autonomy and transparency of local authorities can be considered to be achieved. The interrelation of expansion of powers for local authorities and obtaining budgetary independence and increase of motivation to increase profitability is analysed. The development strategy for the Amalgamated Territorial Communities (ATC) is assessed. Proposals for increasing the capacity of the second stage of the reform are provided. The findings are useful for practitioners and researchers to gain knowledge on the practical issues and challenges of decentralization reform in Ukraine.