International Journal of Computer Science & Network Security

International Journal of Computer Science & Network Security (국제컴퓨터통신보호논문지학회)
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Fiscal Policy Effectiveness Assessment Based on Cluster Analysis of Regions

  • Martynenko, Valentyna (Educational-Scientific Institute of Economical Security and Custom Service, State Tax University) ;
  • Kovalenko, Yuliia (Department of Financial Markets and Technologies, State Tax University) ;
  • Chunytska, Iryna (Department of Financial Markets and Technologies, State Tax University) ;
  • Paliukh, Oleksandr (Corruption Prevention and Detection Department, Ministry of Finance of Ukraine, Department of Fiscal Administration, State Tax University) ;
  • Skoryk, Maryna (Department of Economic Policy, State Tax University) ;
  • Plets, Ivan (Department of Finance, Vasyl Stefanyk Precarpathian National University)
  • Received : 2022.07.05
  • Published : 2022.07.30
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Abstract

The efficiency of the regional fiscal policy implementation is based on the achievement of target criteria in the formation and distribution of own financial resources of local budgets, reducing their deficit and reducing dependence on transfers. It is also relevant to compare the development of financial autonomy of regions in the course of decentralisation of fiscal relations. The study consists in the cluster analysis of the effectiveness of fiscal policy implementation in the context of 24 regions and the capital city of Kyiv (except for temporarily occupied territories) under conditions of fiscal decentralisation. Clustering of the regions of Ukraine by 18 indicators of fiscal policy implementation efficiency was carried out using Ward's minimum variance method and k-means clustering algorithm. As a result, the regions of Ukraine are grouped into 5 homogeneous clusters. For each cluster measures were developed to increase own revenues and minimize dependence on official transfers to increase the level of financial autonomy of the regions. It has been proved that clustering algorithms are an effective tool in assessing the effectiveness of fiscal policy implementation at the regional level and stimulating further expansion of financial decentralisation of regions.

Keywords

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