An Analysis of the Current Status of Financing the Regional Development (on the Example of Odesa Region)

• Main Author: Savastieieva Oksana M.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2020-01-01
• Series: Bìznes Inform
• Subjects: decentralization; local budgets; regional development; development budgets; government financing
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2020-1_0-pages-317_323.pdf

The article is aimed at researching the basics of ensuring the development of Odesa region and formulating the relevant recommendations. The organizational foundations for ensuring the formation and implementation of the State regional policy and its regulatory provision are defined. Regional development tendencies are analyzed by identifying the main strategic directions of the regional development of Odesa region, an analysis of the programs financed from the regional budget and the investment projects financed by the State regional development fund in 2018–2019 is carried out. The preponderance of financing of the investment projects related to the sphere of so-called «solid infrastructure» is determined: construction, capital repairs, reconstruction of social facilities, which, in turn, creates a risk of gradual transformation of the State regional development fund into a fund to finance investment programs and projects that have no connection with ensuring the economic development of regions, i. e. those that do not have any investment and innovation components. Appropriate recommendations are proposed towards improving the procedure of evaluation of the investment projects submitted for consideration in order to determine the extent of their actual strategic impact on the territorial development; expanding the list of investment projects aimed at ensuring the formation of the proper business environment and improving business ability; building a clear system of criteria for determining the amount of government financing for individual regions, etc.