Gruzd, M. V.

Institutional Repository of Vadym Hetman Kyiv National Economic University

62 
 
Gruzd M. V., 
PhD, Economics, Associate Professor, 
S. Kuznets Kharkiv National 
University of Economics, Kharkiv 
 
DIRECTIONS OF FINANCIAL ASSETS MANAGEMENT  
IMPROVEMENT AT THE CITY DISTRICT LEVEL 
 
Effective functioning of the regional arrangement in the current 
economic conditions is impossible without the creation of a modern 
financial assets management system, which is an essential prerequisite 
for forming a basis necessary not only for the survival and stabilization, 
but also for the growth and development of a certain region. One of the 
major problems with regard to regional financial assets in Ukraine is, 
primarily, the dependence on state finance and the absence of an 
appropriate financial basis at the regional level, which would enable not 
only to support the public sector, but also to carry out effective regional 
financial policy aimed at territorial community needs. 
The current Ukrainian budgeting system condition demands 
provision of transparency and independence of the budget formation and 
allocation process. The program-oriented budgeting method is the means 
that enables efficient and transparent budgetary funds application [1]. 
The given method resulted from the development of new 
approaches to planning and it enables to evade limitations arising 
from the formed line-item budget, in particular with regard to 
information management provision and in establishing connections 
between the applied resources and the obtained results. The program-
oriented method facilitates strategic approach, i.e. budgetary 
expenditures planning for several years. 
The components of the program-oriented method in the budgeting 
process are the budgeting programs, their datasheets and executives 
in charge as well as performance indicators. Government grant 
programs are the best elaborated instrument of the government policy 
implemented by means of program-oriented method application. 
Thus, program-oriented method application enables to get a clear 
understanding of the key budget spending unit activity and the aims 
they try to achieve, the ways in which they do this and which results 
they obtain, which, in its turn, enables to improve local budget 
financial assets management [2, p. 16]. The effective lever in social 
and economic problems solution at the local level is the special-
63 
 
purpose funds functioning mechanism. It is necessary to legislate the 
right of the corresponding bodies to establish different special-
purpose funds. 
In the current conditions, local budgets are one of the sources of 
the residents’ survival needs satisfaction. Therefore, the notion of 
financial decentralization at the local level must be introduced. This is 
the process of allocating the functions, financial assets and 
responsibility for their use between the central and local management 
levels. In foreign countries, the term of «fiscal decentralization» is 
used instead of financial decentralization. Charles Mills Tiebout, an 
American economist, originated the idea of fiscal decentralization. In 
his opinion, fiscal decentralization enables subnational government 
bodies to gain autonomy in residents’ funding and public goods and 
services provision. Decentralization is necessary in order to bring 
services to the population, to improve the management system, to 
raise problem solution effectiveness at the local level [3, p. 13]. 
From the methodological point of view, the essence of monitoring 
is the process of reporting data collection and formation upon the 
request of information-analytical reports users for comparative 
analysis of planned and actual values of local budgeting profits and 
expenses within a certain period of time with the aim of analyzing the 
decisions made and their implementation results as well as 
substantiating predictive solutions concerning profits and 
expenditures for the next fiscal period. Therefore, local budgeting 
profits and expenses monitoring system is assigned to provide 
successful government financial policy implementation, budget 
formation process and effective financial assets application in all 
sectors of the financial system [4, p. 81]. 
Thus, in order to guarantee effective regional financial assets 
management we need to distinguish the main directions and develop 
their implementation measures, which must include: socio-economic 
development problems systematization: monitoring system 
development in order to distinguish the state of the region; integrated 
prediction options effectiveness assessment and selection of the best 
option; additions to the complex regional socio-economic development 
forecasting plan; formation of the state, regional and local special-
purpose programs territorial perspective and their implementation 
priority definition; initiation and participation in regional programs and 
projects development; formation of priority assessment and programs 
and projects support methods; financial assets formation at the regional 
64 
 
level: direct access resources, profits of individuals and legal entities, 
non-residents’ funds; innovative regional support forms and methods 
application: local investment projects and programs support, support at 
the expense of alternative sources. 
Thus, the basic measures for financial assets management 
improvement at the city district level include budgeting program-oriented 
method implementation at the local level, which will enable effective and 
sound budgeting costs allocation with regard to the compliance of this 
process with public expectations directly communicate budgeting costs 
allocation and obtaining their implementation results. Local taxes and fees 
imposition, which will be aimed at regional taxation policy 
implementation, are expedient in order to foster local budget proper 
revenues increase, actual decrease in tax burden on households and 
reasoned tax concessions and taxes and fees administration improvement. 
Literature 
1. Жаворонков В. О. Управління фінансовою складовою регіону 
[Електронний ресурс] / В. О. Жаворонков. — Режим доступу: 
jrnl.nau.edu.ua 
2. Душук В. Застосування програмно–цільового методу на рівні міс-
цевих бюджетів / В. Душук // Казна України. — 2013. — №4(25). — C. 
15 — 17. 
3. Жемеренко Є. В. Використання коштів місцевих бюджетів України / 
Є.В. Жемеренко // Фінанси України. — 2012. — № 8. — С. 12—18. 
4. Монаєнко А. О. Повноваження органів державної влади щодо 
здійснення фінансово-бюджетного контролю місцевих бюджетів / 
А.О. Монаєнко // Економіка та держава. — 2009. — № 7. — С. 81 — 91. 
 
 
Аблова О. К., к.е.н., доцент  
кафедри регіональної економіки і туризму  
ДВНЗ «Київський національний економічний університет 
імені Вадима Гетьмана», м. Київ 
ОСНОВНІ ВАЖЕЛІ СУЧАСНОГО МЕХАНІЗМУ  
УПРАВЛІННЯ ПРИРОДОКОРИСТУВАННЯМ 
Механізм управління в галузі природокористування та охоро-
ни навколишнього природного середовища від забруднення по-
чав формуватися в економічно розвинутих країнах у 7-х роках 
ХХ сторіччя, а в Україні же він почав формуватися тільки на по-


Directions of financial assets management improvement at the city district level

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Directions of financial assets management improvement at the city district level

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