Authors:

Vera V. LEVINA Cand. Sc. (Econ.), Associate Professor of Finance and Management Dept.

Abstract:

In the context of modern environment a great attention is paid to the problems of regional development, the implementation of which requires particular mechanisms to be used. The paper analyses the major instruments applied to stimulate the development of regions and municipalities: legal tools; strategy and program related development instruments; those based on intermunicipal cooperation; financial; etc. The crucial role of budgetary and fiscal mechanisms under unstable economic conditions is highlighted. Among the financial instruments, the author underlines those associated with financial involvement of citizens (participatory budgeting and selftaxation) and implementation of interbudgetary regulation. It is established that the use of equalizing and stimulating subsidies for the purpose of regional development implies their integrated application. The suggested approach allows identifying the directions for harmonizing regional and municipal interests while using interbudgetary transfers as one of the most effective mechanisms of a territory’s socio-economic development regulation.

Keywords:

REGIONAL DEVELOPMENT, STRATEGIC PLANNING, PROGRAM, REGIONAL BUDGET, PARTICIPATORY BUDGETING

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For citation: Levina V.V. Regulation of regional development using financial instruments: problems and prospects. Upravlenets – The Manager, 2017, no. 3(67), pp. 18–24.