Social and Legal Studios

Abstract

In the context of fiscal decentralization, the issue of forming the revenue part of the local budgets of Ukraine, especially due to tax revenues in general and personal income tax in particular, are gaining particular attention. The purpose of the article is to analyze the trends of the formation of revenues of local budgets of Ukraine at the expense of the tax on personal incomes and to consider the question of the fairness of its distribution among the links of the budget system. In the process of research, the following methods of economic research were used: monographic (study of scientific works on the problems of the formation of local budgets); abstract-logical (the formation of theoretical generalizations and conclusions); analysis and synthesis (assessment of trends in the functioning of local budgets of Ukraine and determination of the fiscal role of the personal income tax). The basic problems of forming of incomes local budgets of Ukraine at the expense of the personal income tax in the context of budget decentralization are determined. The dynamics of budget indicators of functioning of local budgets of Ukraine and personal income tax for 2013-2017 is investigated. The tax on individuals’ incomes by fiscal value is the main budget-forming tax in forming the revenue part of local budgets, which is evidenced by its decisive role in the formation of financial resources of local budgets. However, fiscal reform has changed the order of splitting the tax on personal incomes between levels and levels of the budget system, which, according to the results of the analysis, does not contribute to fiscal decentralization in Ukraine. In order to increase the fiscal efficiency of the personal income tax as a source of the formation of local budget revenues, it is necessary to change the mechanism of its distribution, which will ensure the real financial autonomy of the budgets of local self-government. To strengthen the financial autonomy of local self-government budgets as the main foundation in the structure of local budgets, it is expedient to include the personal income tax fully in the revenue part of the budgets of territorial communities, which will allow to efficiently finance expense powers and reduce their dependence on intergovernmental transfers

Keywords: personal income tax, local budgets, tax revenues, dynamics, budget decentralization

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