FISCAL SPACE OF LOCAL GOVERNMENT BODIES

Abstract

The article examines the essence of the concept of "fiscal space". It is proposed to consider it in a narrow and broad sense and to understand the fiscal space in its broad manifestation as the environment of interaction between economic subjects, within the limits of the established norms, the functioning of relevant institutions, in which centralized funds of financial resources are formed, distributed and spent at different levels of the budget system and, at the same time, the available fiscal reserve for achieving the set goals and their implementation, which does not violate financial stability. The theoretical-methodical and practical aspects of the formation of the fiscal space of local self-government bodies are disclosed. It is noted that the fiscal space is the space that is created in the process of functioning of the fiscal policy. Problematic aspects of the formation and functioning of the fiscal space of local self-government bodies in Ukraine are analyzed. The key problematic aspects of the functioning of the fiscal space of local self-government bodies have been identified, among which the leading role belongs to the following: lack of complete information used for planning income and expenses in the State Land Cadastre and the State Register of Real Property Rights; imperfect planning of local budget revenues and imperfect systematic methodological approaches; use of the method of reorientation of expenses during the budget year; the presence of a corruption component and deficiencies in the management of financial resources; imperfect administration of local taxes and fees; existence of schemes for shadow lease of state lands, underestimation by local self-government bodies of normative rates of payment for land, low level of coverage of lands by normative monetary valuation; lack of title documents for real estate that is already in use and belongs to a specific person, etc. The main directions of elimination of identified deficiencies in the functioning of the fiscal space of local self-government bodies are outlined, which will allow expanding the fiscal space and contribute to the socio-economic development of the territories.