Budget allocations are crucial in the Scandinavian model, which envisages
centralisation in the budget to 60% of GDP. Such a model creates the preconditions for
improvement of living conditions, confidence in the future. But for its implementation,
a high level of development of the economy, incomes and their taxation, and his
consciousness are required. A more moderate model is used in Western Europe, where
the budget is centralised by 35-45% of GDP, somewhat lower than the level of taxation.
The most rigid model in the USA, where the degree of centralisation of GDP is only
25-30%, and the funds are mainly spent for military purposes. Social support is
primarily for the disabled population. Others have to rely on their strengths. Living
decently without own income is impossible. Therefore, this model stimulates the
activity of the community and is the most effective [22, p. 38-39]. For Ukraine, it is
necessary to choose the most appropriate model, based on the financial capabilities of
the country, regions, people's consciousness and their incomes.
But in any case, it is essential to offer such financial instruments and leverage that
will ensure an increase in the revenue side of the budget. The development of a system
of financial instruments and instruments that will have a positive effect on the main
factors of economic growth will be even more critical: the formation of labour and
innovative potential of the region will stimulate the development of rural territories,
rational use of natural resources, decrease of energy intensity of products, and others.
An effective economic tool is a control. Therefore, at the third stage of the
formation of a financial and economical mechanism for managing regional
development, it is necessary to develop a system of indicators for assessing
achievements in sustainable development.
Future results depend on the potential, the assessment of which will allow
planning targeted actions for its further development.
The effectiveness of management depends on the efficacy of power. The
development of methodological principles for its evaluation and proper motivation of
labour will contribute to the improvement of the effectiveness of regional governance.
CONCLUSION
Modern conditions require the specialists of public administration to
systematically synergetic approach to solving the problems of socio-economic
development. Current public regulation combines at least three tasks: the creation of
legal conditions for economic development to ensure normal social conditions for the
population territory.
In today's conditions, at all levels of management, a financial mechanism that can
not be considered personally without a specific target orientation, respectively, of the
long-term development strategy and the prediction of chain responses to its action,
becomes of particular importance.
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