VIKTORYA H. BORONOS, IRYNA Y.PLIKUS, ZHANNA S. PRONIKOVA
Mechanism to Ensure the Financial Independence of the Territories on the Basis of Decentralization
(original language – Ukrainian)

In the article the scientific and methodical approach of a mechanism to ensure financial independence territory on the basis of decentralization. It is emphasized that financial capacity areas should be assessed in solving problems of tactical and strategic. In determining the financial independence of the territory proposed to use financial potential is calculated by taking into account the impact of the shadow economy on financial flows, thus avoiding the manipulation of money allocated for development of the area and to identify regions donor and recipient regions. The article draws attention to the fact that the mechanism for ensuring financial autonomy territory on the basis of decentralization should be based on achieving a reasonable compromise interest of the State and Territories (population and businesses). That financial autonomy area is not an absolute concept, it is relative, is meant to increase the level of autonomy to certain maximum possible limits that do not conflict with the interests of the state and budgets at all levels

Key words: fiscal decentralization, financial autonomy; financial potential of the territory; intergovernmental relations.

Placed in №4, 2014.

Affiliations: VIKTORYA H. BORONOS, D.Sc. (Economics), Professor,
Department of Economics and Business-Administration, Sumy State University;
IRYNA Y.PLIKUS, C.Sc. (Economics), Associate Professor,
Department of Finance and Credit, Sumy State University;
ZHANNA S. PRONIKOVA, Student of Faculty of Economics and Management, Sumy State University

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