Transformation of Public Finances in Ukraine in the System of Decentralized Processes

Abstract

Aspects of decentralization of public finances are examined. The basis of the concept is the provision regarding public finances as an outpost of the economic sovereignty. Expansive and restrictive types, budget and tax, as well as debt instruments of public finance management are analyzed. The expediency of experience by introducing a new institutional architectonics micropolicy in fiscal policy, public finances and budget is substantiated. When combining the recession with inflation, it is important to use both incentive and dissuasive financial instruments simultaneously. The positions regarding the formation of the efficient financial system in Ukraine, that are blocked by the ideological and psychological disqualification of a producer and central and local government, as well as of the unwillingness or unawareness to constrict zone of fiscal contradictions, are formulated. This situation can be changed provided the socialization of mentality basedon awareness of the necessity of obtaining a part of GDP and acceptance of responsibility for the tax price of public goods and transfer payments.