CEU Electronic Theses and Dissertations, 2008
| Author | Kurasov, Andriy |
|---|---|
| Title | Tools for Financing Local Economic Development Policies in Ukraine: Taxation approach |
| Summary | The core problem of the paper is inappropriate national taxation policy in Ukraine that does not allow effective and efficient local economic development of municipalities in the country. In order to solve the problem, the research question of the thesis is what changes are to be made in the state and local tax policies to provide sufficient financing of local economic development. the goal of the research is to analyze the Ukrainian tax system on both state and local levels to provide feasible and the most effective tax policy modifications in order to serve efficiently as a financial tool for local economic development programs. The research involved not only Ukrainian research experience, but additionally practices of foreign scholars as well as case studies of similarly developed countries. Although some attempts to decentralize Ukrainian fiscal system have been made, it does still remain highly centralized. As the consequences of tax system centralization local taxes perform too small role in budget revenues. Moreover, local governments have almost no autonomy in decision process over their income. In addition, high centralization leads to extreme dependence of municipalities on central policies. As the result, any change at the top seriously affects bottom level that can appear as revenue decrease and significantly lower predictability for municipalities. Finally, centralized tax administration system leads to unmotivated local governments regarding tax collection, and to existence of irrational taxes with higher costs than revenues. In order to improve the described situation following policy recommendations were drown in the research. They can be divided into four main parts. In the first part suggestions regarding general budget changes were developed. Second part encompasses local taxation modifications. Third part was devoted to detailed discussion on new property tax that should be introduced in Ukraine. Finally, last part of policy recommendations includes tax administration changes and suggestions on decentralization of tax administration system. |
| Supervisor | Ionescu Adrian |
| Department | Public Policy MA |
| Full text | https://www.etd.ceu.edu/2008/kurasov_andriy.pdf |
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