Conceptual Foundations of Fiscal Decentralization in EU Countries

The article defines the conceptual foundations of fiscal decentralization in the EU-countries and develops recommendations as applied to further implementation of the best European practices in fiscal deregulation in Ukraine. New trends in public finance management in the EU-countries are under consideration. The scope of functions and powers included in the competence of sub-national governments is assessed. The structure of their revenues and expenditure along with the system of distribution of tax revenues among various levels of public management are analyzed. The fiscal decentralization ranks in the EU-countries are defined by using the composite index that includes both aspects of fiscal decentralization: income-generation and expenditure. Individual EU-countries are ranked according to the level of tax self-regulation of their local authorities. The measures have been proved that are designed to introduce further fiscal decentralization in Ukraine with due account for the European practices in order to establish self-sufficient territorial communities, create the required organizational, legal and financial prerequisites for the development of rural areas.