Principles, Economic and Institutional Prerequisites for Fiscal Decentralization under Conditions of Post-Conflict Reconstruction

Rekova Nataliia Yu. () and Valentine Vishnevsky
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Rekova Nataliia Yu.: Donbass State Academy of Machine Building

The Problems of Economy, 2016, issue 4, 183_189

Abstract: The aim of the article is to study principles, economic and institutional prerequisites for fiscal decentralization on post-conflict territories. It is determined that fiscal decentralization is one of the main ways to solve problems of post-conflict areas. There justified principles, economic and institutional prerequisites of fiscal decentralization on post-conflict territories with regard to the specificity of individual spheres of fiscal relations. Moreover, different spheres of fiscal relations require different approaches: the sphere of public revenues — providing economic efficiency with the formation of the tax structure contributing to the expansion of the tax base; the sphere of public spending — ensuring social justice and transparency in allocation of social cost at the local level; the sphere of subsidies — narrowing the scope of application of intergovernmental transfers with organizing the redistribution of financial resources under the principle of “center - post-conflict regions - post-conflict recipients†; the sphere of external assistance — ensuring proper coordination for cultivation of new co-operative institutions.

Keywords: principles; prerequisites; fiscal decentralization; post-conflict territories (search for similar items in EconPapers)
Date: 2016
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