State and municipal finance in conditions of economic transformations

  • Valentyna Makohon Kyiv National University of Trade and Economics
  • Iryna Adamenko Kyiv National University of Trade and Economics
Keywords: public finance, municipal finance, fiscal policy, budget, budget system, economic transformations

Abstract

Relevance of the research topic. In the current conditions of economic transformations, the issues of increasing the validity of the fiscal policy, strengthening the effectiveness of public and municipal finance management systems are relevant. An important task is to restore the budget balance, coordinate the actions of public authorities and local governments in the process of formation and implementation of fiscal policy. Formulation of the problem. Based on the transformation processes in the domestic system of public finance, the important tasks are to substantiate the directions of development of public and municipal finance systems, their components. At the same time, the choice of fiscal policy tools should be made taking into account the cyclical and dynamic economic processes. Analysis of recent research and publications. The issue of formation and implementation of fiscal policy for the development of public and municipal finance systems is quite common in research. These are the works of well-known domestic and foreign scientists: J. Keynes, P. Samuelson, V. Nordhaus, J. Stiglitz, V. Tanzi, T. Bogolib, I. Zapatrina, L. Lysyak, V. Oparin, M. Pasichnyy, V. Fedosov, I. Chugunov, and others. Highlighting unexplored parts of a common problem. These issues are relevant in connection with the intensification of globalization processes, unfavorable external and internal economic environment, which requires several specific tasks related to the fiscal policy development. Goal setting, research goals. The research goals are to reveal the essence and role of state and municipal finances in financial and economic regulation; to determine the priority tasks of fiscal policy in the conditions of economic transformations. The purpose of the study is to reveal the institutional principles and directions of development of public and municipal finance management systems. Research method or methodology. The set of methods of scientific research is applied in the article: a systematic approach, statistical analysis, structuring, analysis, synthesis, etc. Basic material presentation (results of work). The essence and role of state and municipal finances in financial and economic regulation of the administrative-territorial units development and the country are revealed. The priority tasks of fiscal policy in the conditions of economic transformations are defined. The analysis and assessment of budget indicators is carried out. Area of application of results. The results of the study can be used in the process of the formation and implementation of the fiscal policy of Ukraine, reforming the public finance system. Conclusions according to article. Measures for further improvement of state and municipal finance should aim at optimizing the functions of state and local governments and their efficient allocation among them. Strengthening decentralized processes in Ukraine aimed at creating a modern system of local governments, municipal finance development based on European values. Achieving concrete results, identified under the priorities of fiscal policy at the local level, implies clear coordination and increasing the level of responsibility of all participants in the budget process.

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Author Biographies

Valentyna Makohon, Kyiv National University of Trade and Economics

Doctor of Economics, Senior Researcher,Professor, Department of Finance

Iryna Adamenko, Kyiv National University of Trade and Economics

Candidate of Economic Sciences (Ph. D.), Senior Researcher, Senior Research Officer, Scientific Research Financial Institute

Published
2020-09-01
How to Cite
Makohon, V., & Adamenko, I. (2020). State and municipal finance in conditions of economic transformations. University Economic Bulletin, (46), 177-183. https://doi.org/10.31470/2306-546X-2020-46-177-183
Section
Finance, Monetary Circulation and Credit