Introduction. The change of the administrative-territorial system at the basic level and the reform of the public administration system in Ukraine in 2014–2020 took place on the basis of the experience of the EU countries regarding the decentralization of administrative and financial powers in favor of local self-government. Today, the first stage of reform has already been com­pleted, because territorial communities as the basic units of the administrative-territorial system have been formed throughout the territory of Ukraine, as well as redistribution of spending powers and revenue sources between different levels of management. Accordingly, the issue of ensuring financial self-sufficiency of territorial communities for the long term is being updated. Decentralization in European countries took place in different periods, and therefore, the tasks that today face the Ukrainian state and local self-government in particular, these countries have already solved with one or another measure of efficiency, which makes it possible to talk about the possibility of adapting the acquired experience to domestic realities.

The purpose of the article is to study European practices of ensuring financial self-suffi­ciency of basic administrative and territorial formations for the further implementation of the most effective practices in domestic realities.

Results. The practice of developing the public finance system on the basis of decentral­ization in the EU countries was studied, the difference between the levels of decentralization of territorial communities in different countries and the tendency to exceed the level of decen­tralization of expenses over the level of income decentralization was revealed. Emphasis is placed on the key principles of ensuring financial self-sufficiency of territorial communities in the European Charter of Local Self-Government. The existence of a financial "cushion" for territo­rial communities in the form of distributed resources from supranational funds is substantiated. Given the lack of such a mechanism in Ukraine, the need to study European practices for accu­mulating sufficient financial resources for community development is argued, including taxes on economic activity (personal income tax, corporate income tax, local business tax, property taxes on commercial real estate and land) and local borrowing.

Ключові слова

financial self-sufficiency, territorial community, decentralization, taxes, local borrowing

Повний текст:



Balaguer-Coll, M. T., Narbón-Perpiñá, I., Peiró-Palomino, J., Tortosa-Ausina, E. (2022). Quality of government and economic growth at the municipal level: Evidence from Spain. Journal of Regional Science, 1–29. Available at: https://doi.org/10.1111/jors.12555.

Kmezic, S., Bartlett, W., Dulic, K. (2020). The impact of fiscal decentralisation on local economic development in Serbia. Lex localis - Journal of Local Self-Government, 18 (1). Available at: http://pub.lex-localis.info/index.php/LexLocalis/article/view/1268.

Friedrich, P., Gwiazda, J., Woon Nam, C. (2003). Development of local public finance in Europe. CESIFO Working Paper, 1107. Available at: https://core.ac.uk/download/pdf/6634217.pdf.

Canavire-Bacarreza, G., Martinez- Vazquez, J., Yedgenov, B. (2020). Identifying and disentangling the impact of fiscal decentralization on economic growth. World Development, 127. Available at: https://doi.org/10.1016/j.worlddev.2019.104742.

Ivanov, S. (2017). Comparative analysis of the local finance systems in the EU countries – conclusions and lessons for Bulgaria. Ikonomicheski izsledvaniia – Economic Studies, XXVI, 4, 41–72.

László, V. (2019). Local government debts in the EU countries. 27 th NISPAcee Annual Conference. May 24–26; Prague, Czech Republic. Available at: https://www.nispa.org/files/conferences/2019/e-proceedings/system_files/papers/local-government-debts-vertesy.pdf.

Pavlova-Banova, M. (2018). Fiscal decentralization in Europe: effects on local governments. Fiscal Autonomy. Economic Archive, 3, 3–14. Available at: https://dlib.uni-svishtov.bg/bitstream/handle/10610/3927/213b82ccdd3a33ac361f9ad95b3dc193.pdf?sequence=1&isAllowed=y.

Hendrickson, V. (2020). How do property taxes compare throughout Europe? Mansion Global. Available at: https://www.mansionglobal.com/articles/how-do-property-taxes-compare-throughout-europe-221884.

Akhmerov, O. (2018) Municipal policy of EU countries. Aktualni problemy polityky – Actual Problems of Politics, 61, 174–183.

Storonyanska, I. Z. (Ed.). (2018). Mekhanizmy administratyvno-finansovoi detsentralizatsii: svitovi praktyky ta napriamky yikh implementatsii v Ukraini [Mechanisms of administrative and financial decentralization: world practices and directions of their implementation in Ukraine]. NAN Ukrainy [in Ukrainian].

Danylyshyn, B., Pylypiv, V. (2016). Detsentralizatsia u krainakh YES: uroky dlia Ukrainy [Decentralization in EU countries: lessons for Ukraine]. Rehionalna ekonomika – Regional Economy, 1, 5–11 [in Ukrainian].

Kyrylenko, O. P. (Ed.). (2014). Mistsevi finansy [Local finance]. Ternopil: Ekonomichna dumka [in Ukrainian].

Ligthart, J. E., van Oudheusden, P. (2017). The fiscal decentralisation and economic growth nexus revisited. Fiscal Studies, 38(1), 141– 171. Available at: https://doi.org/10.1111/1475-5890.12099.

Municipal governments’ finances and investments. OECD Regions and Cities at a Glance 2020. Available at: https://www.oecd-ilibrary.org/sites/28165277-en/index.html?itemId=/content/component/28165277-en.

Yevropeiska hartia mistsevoho samovraduvannia [European Charter of Local Self- Government]. Strasbourg, October 15, 1985. Available at: https://zakon.rada.gov.ua/laws/show/994_036#Text.

Key data on local and regional governments in the European Union. OECD. European Commission. 2018. Available at: https://zakon.rada.gov.ua/laws/show/994_036#Text.

Local taxes on economic activity in municipalities in EU Member States. European Commission. 2022. Available at: https://zakon.rada.gov.ua/laws/show/994_036#Text.

World observatory on subnational government finance and investment. OECD. Available at: https://www.oecd.org/regional/observatory-on-subnational-government-finance-and-investment.htm.

Basic principles of local government borrowing. Network of Associations of Local Authorities of South-East Europe. Available at: http://www.nalas.eu/knowledge-center/Basic-Principles-of-Local-Government-Borrowing.

DOI: https://doi.org/10.35774/sf2022.02.119


  • Поки немає зовнішніх посилань.

ISSN 1818-5754 (print), ISSN 2415-3672 (online)
West Ukrainian National University
© "WOF", 2004-2019