An important task of local budgets is a financial security of development of
terretories. Unfortunately, in Ukraine, although the budgetary funds are an integral
part of the overall investment resources of the system of social reproduction, but
their amounts are very scarce and there is a constant downward trend in the share
of capital investment from local budgets in total investment - from 4.6% in 2008 to
3.4% in 2015. In addition to poor financial support of local development budgets,
an important issue is that they do not fulfill entrusted to them, investment
functions, and increasingly finance only capital expenditures

Benovska, L.

SocioEconomic Challenges Journal (Sumy State University)

1 
 
МІНІСТЕРСТВО ОСВІТИ І НАУКИ УКРАЇНИ 
Сумський державний університет (Україна) 
 
Вища школа економіко-гуманітарна (Республіка Польща) 
Академія техніко-гуманітарна (Республіка Польща) 
IBM Canada, м. Торонто (Канада) 
Державна установа "Інститут економіки природокористування та сталого розвитку 
Національної академії наук України", м. Київ (Україна) 
Парламент Ізраїлю, м. Єрусалим (Держава Ізраїль) 
Національний технічний університет України 
 «Київський політехнічний інститут» (Україна) 
Одеський національний політехнічний університет (Україна) 
Технічний університет –Варна (Республіка Болгарія) 
Університет “Проф. д-р Асен Златаров”, м. Бургас (Республіка Болгарія) 
Університет Торонто (Канада) 
УО «Вітебський державний технологічний університет» (Республіка Білорусь) 
 
 
 
Економічні проблеми сталого розвитку 
 
Экономические проблемы устойчивого развития 
 
Economicаl Problems of Sustainable Development 
 
Матеріали 
Міжнародної науково-практичної конференції 
імені проф. Балацького О. Ф. 
(Суми, 11–12 травня 2016 р.) 
 
У двох томах 
Том 1 
 
 
Суми 
Сумський державний університет 
2016 
135 
 
4 
ІНВЕСТИЦІЙНІ ПИТАННЯ СТАЛОГО РОЗВИТКУ 
INVESTMENT ISSUES OF SUSTAINABLE 
DEVELOPMENT 
ИНВЕСТИЦИОННЫЕ ВОПРОСЫ УСТОЙЧИВОГО 
РАЗВИТИЯ 
 
 
THE ROLE OF LOCAL BUDGETS IN THE INVESTMENT 
DEVELOPMENT OF TERRITORIES 
 
Ph.D. Benovska L. 
SI "Institute of Regional Research named after M. I. Dolishiy of the NAS of 
Ukraine" 
 
An important task of local budgets is a financial security of development of 
terretories. Unfortunately, in Ukraine, although the budgetary funds are an integral 
part of the overall investment resources of the system of social reproduction, but 
their amounts are very scarce and there is a constant downward trend in the share 
of capital investment from local budgets in total investment - from 4.6% in 2008 to 
3.4% in 2015. In addition to poor financial support of local development budgets, 
an important issue is that they do not fulfill entrusted to them, investment 
functions, and increasingly finance only capital expenditures. 
Strengthening of investment component of local budgets, primarily is 
connected with the improvement of mechanisms of formation and use of their 
development budgets. The amount of development budget is one of the basic 
indicators of the quality of life of local communities, as budget expenditures are 
directed for investment projects, purchase, repair and reconstruction of the social 
and cultural spheres, development of housing and communal services and roads. 
Legislative changes to the sources of filling of local development budgets in 
Ukraine during different periods had a significant impact on their scope and 
structure. Thus, the development budget of local budgets Ukraine in 2008 (action 
of Budget Code of Ukraine from 21.06.2001) amounted to 8.8 bln., while the share 
of revenues of development budget in the total stucrure of revenues of the local 
budget was 12.5%. The main components, which formed budget at that period 
were the funds from the sale of land and property alienation. 
Important steps towards the strengthening of investment component of local 
budgets were committed in the Budget Code of 2010, where the single tax was 
attributed to the revenues of development budget, paid by business entities and as a 
result, there was a significant increase of its amount next years. The proposed 
changes greatly influenced the structure of the sources of formation of the 
development budget, in which gradually occurred a significant increase of 
revenues share from the single tax: if in 2011the share of single tax in the total 
136 
 
structure of local budget revenues was 2.3%, then in 2014 it was 7.3% [1; 2]. 
With the introduction of amendments to the Budget Code in 2015, single tax 
from entrepreneurship was excluded from revenues of the special fund and was 
transferred to the general fund revenues. As a result, the development budget was 
deprived of the main source of its filling, which significantly affected its structure. 
Its main element became the funds, obtained from the general budget fund for 
covering the deficit of the budget (6.8% in the structure of revenues of the local 
budgets, and 74.7% in development budget structure in 2015). 
The main problems of formation and usage of development budget of local 
budgets are legislative limit of the sources of its filling and, consequently, its 
extremely low amounts; weak possibilities of filling the development budget of 
baseline budgets, municipalities which have limited economic potential; 
unregulated manner of realization of local borrowings and their high riskiness; 
inefficient structure of expenditures of development budget through failure to 
fulfill its main function - the investment function. 
For solution of the following problems it should be developed a set of 
measures, which on the one hand, contributes to the strengthening of the revenue 
part of the development budget, and on the other hand - increases the efficiency 
and optimizes the structure of its expenditures. 
 
1. Byudzhetniy kodeks Ukrainy [Budgetary Code of Ukraine] 09.07.2010, №2456-VI. - 
zakon.rada.gov.ua : Retrieved from http://zakon1.rada.gov.ua/laws/show/2456-17. [in Ukrainian]. 
2. Kyrylenko O. P. (2001). Finansova nezalezhnist’ miszevoho samovryaduvannya [Financial 
independence of the local self-government]. FinansyUkrainy - Finance of Ukraine, 1, pp. 34-39. [in 
Ukrainian]. 
3. Storonyanska, L. Benovska (2015) Finansova spromozhnist regioniv u contecsti biudzhetno-
podatkovoyi detsentralizhatsii [Financial capacity of regions in the context of fiscal-budgetary 
decentralization FinansyUkrainy ] - Finance of Ukraine, 6, pp. 44-57. [in Ukrainian]. 
 
МІНІМІЗАЦІЯ РИЗИКІВ ІНВЕСТИЦІЙНОЇ ДІЯЛЬНОСТІ 
 
студент гр. М-41 Бугаєнко Д.В. 
Сумський державний університет (Україна) 
 
На сьогоднішній день інвестиційна діяльність прямо пов’язана з будь-
яким ризиком. Адже досить часто виникають непередбачувані втрати в 
процесі управлінської діяльності. Присутність ризику є обов'язковим 
компонентом підприємницької діяльності і виступає як фактор просування 
фінансової системи. Інвестори можуть зіткатися з різноманітними 
проблемами, бо вкладаючи кошти в виробництво певних товарів чи послуг, 
вони не мають точної впевненості, що саме ця діяльність принесе успіх, а 
головне прибуток. 
В процесі своєї діяльності інвестори повинні визначити певні фактори від 
яких саме буде залежить вдалий бізнес, а найголовніше розробляти чіткий 


English

The Role of Local Budgets in the Investment Development of Territories

Electronic Sumy State University Institutional Repository

1  МІНІСТЕРСТВО ОСВІТИ І НАУКИ УКРАЇНИ Сумський державний університет (Україна)  Вища школа економіко-гуманітарна (Республіка Польща) Академія техніко-гуманітарна (Республіка Польща) IBM Canada, м. Торонто (Канада) Державна установа "Інститут економіки природокористування та сталого розвитку Національної академії наук України", м. Київ (Україна) Парламент Ізраїлю, м. Єрусалим (Держава Ізраїль) Національний технічний університет України  «Київський політехнічний інститут» (Україна) Одеський національний політехнічний університет (Україна) Технічний університет –Варна (Республіка Болгарія) Університет “Проф. д-р Асен Златаров”, м. Бургас (Республіка Болгарія) Університет Торонто (Канада) УО «Вітебський державний технологічний університет» (Республіка Білорусь)    Економічні проблеми сталого розвитку  Экономические проблемы устойчивого развития  Economicаl Problems of Sustainable Development  Матеріали Міжнародної науково-практичної конференції імені проф. Балацького О. Ф. (Суми, 11–12 травня 2016 р.)  У двох томах Том 1   Суми Сумський державний університет 2016 135  4 ІНВЕСТИЦІЙНІ ПИТАННЯ СТАЛОГО РОЗВИТКУ INVESTMENT ISSUES OF SUSTAINABLE DEVELOPMENT ИНВЕСТИЦИОННЫЕ ВОПРОСЫ УСТОЙЧИВОГО РАЗВИТИЯ   THE ROLE OF LOCAL BUDGETS IN THE INVESTMENT DEVELOPMENT OF TERRITORIES  Ph.D. Benovska L. SI "Institute of Regional Research named after M. I. Dolishiy of the NAS of Ukraine"  An important task of local budgets is a financial security of development of terretories. Unfortunately, in Ukraine, although the budgetary funds are an integral part of the overall investment resources of the system of social reproduction, but their amounts are very scarce and there is a constant downward trend in the share of capital investment from local budgets in total investment - from 4.6% in 2008 to 3.4% in 2015. In addition to poor financial support of local development budgets, an important issue is that they do not fulfill entrusted to them, investment functions, and increasingly finance only capital expenditures. Strengthening of investment component of local budgets, primarily is connected with the improvement of mechanisms of formation and use of their development budgets. The amount of development budget is one of the basic indicators of the quality of life of local communities, as budget expenditures are directed for investment projects, purchase, repair and reconstruction of the social and cultural spheres, development of housing and communal services and roads. Legislative changes to the sources of filling of local development budgets in Ukraine during different periods had a significant impact on their scope and structure. Thus, the development budget of local budgets Ukraine in 2008 (action of Budget Code of Ukraine from 21.06.2001) amounted to 8.8 bln., while the share of revenues of development budget in the total stucrure of revenues of the local budget was 12.5%. The main components, which formed budget at that period were the funds from the sale of land and property alienation. Important steps towards the strengthening of investment component of local budgets were committed in the Budget Code of 2010, where the single tax was attributed to the revenues of development budget, paid by business entities and as a result, there was a significant increase of its amount next years. The proposed changes greatly influenced the structure of the sources of formation of the development budget, in which gradually occurred a significant increase of revenues share from the single tax: if in 2011the share of single tax in the total 136  structure of local budget revenues was 2.3%, then in 2014 it was 7.3% [1; 2]. With the introduction of amendments to the Budget Code in 2015, single tax from entrepreneurship was excluded from revenues of the special fund and was transferred to the general fund revenues. As a result, the development budget was deprived of the main source of its filling, which significantly affected its structure. Its main element became the funds, obtained from the general budget fund for covering the deficit of the budget (6.8% in the structure of revenues of the local budgets, and 74.7% in development budget structure in 2015). The main problems of formation and usage of development budget of local budgets are legislative limit of the sources of its filling and, consequently, its extremely low amounts; weak possibilities of filling the development budget of baseline budgets, municipalities which have limited economic potential; unregulated manner of realization of local borrowings and their high riskiness; inefficient structure of expenditures of development budget through failure to fulfill its main function - the investment function. For solution of the following problems it should be developed a set of measures, which on the one hand, contributes to the strengthening of the revenue part of the development budget, and on the other hand - increases the efficiency and optimizes the structure of its expenditures.  1. Byudzhetniy kodeks Ukrainy [Budgetary Code of Ukraine] 09.07.2010, №2456-VI. - zakon.rada.gov.ua : Retrieved from http://zakon1.rada.gov.ua/laws/show/2456-17. [in Ukrainian]. 2. Kyrylenko O. P. (2001). Finansova nezalezhnist’ miszevoho samovryaduvannya [Financial independence of the local self-government]. FinansyUkrainy - Finance of Ukraine, 1, pp. 34-39. [in Ukrainian]. 3. Storonyanska, L. Benovska (2015) Finansova spromozhnist regioniv u contecsti biudzhetno-podatkovoyi detsentralizhatsii [Financial capacity of regions in the context of fiscal-budgetary decentralization FinansyUkrainy ] - Finance of Ukraine, 6, pp. 44-57. [in Ukrainian].  МІНІМІЗАЦІЯ РИЗИКІВ ІНВЕСТИЦІЙНОЇ ДІЯЛЬНОСТІ  студент гр. М-41 Бугаєнко Д.В. Сумський державний університет (Україна)  На сьогоднішній день інвестиційна діяльність прямо пов’язана з будь-яким ризиком. Адже досить часто виникають непередбачувані втрати в процесі управлінської діяльності. Присутність ризику є обов'язковим компонентом підприємницької діяльності і виступає як фактор просування фінансової системи. Інвестори можуть зіткатися з різноманітними проблемами, бо вкладаючи кошти в виробництво певних товарів чи послуг, вони не мають точної впевненості, що саме ця діяльність принесе успіх, а головне прибуток. В процесі своєї діяльності інвестори повинні визначити певні фактори від яких саме буде залежить вдалий бізнес, а найголовніше розробляти чіткий 

https://essuir.sumdu.edu.ua/bitstream/123456789/49929/1/Benovska_Local.pdf

The Role of Local Budgets in the Investment Development of Territories

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