Systematisation of the Sustainable Development Goals by its components and responsibilities of the authorities

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Systematisation of the Sustainable Development Goals by its components and responsibilities of the authorities

Martynenko Valentyna, Doctor of Economics, Professor, Professor of the Department of Public Finance, State Tax University

The actualization and practical implementation of the concept of sustainable development in Ukraine began after 2015, when our country officially joined the global process of ensuring the Sustainable Development Goals. The purpose of the article is to study the place of local selfgovernment in the financial support of the strategy for achieving the Sustainable Development Goals of Ukraine in the context of limited budgetary resources and decentralization. In the course of the analysis of the strategic role of local self-government in the financial support of the Sustainable Development Goals of Ukraine, it is found that municipal authorities, whose financial resources account for 35.0% of public finances, are responsible for achieving strategic objectives in the context of 7 Goals (41.2%). In order to assess the strategic potential of financial support for the Sustainable Development Goals at the regional level, the author proposes a methodological approach that takes into account the Pearson's pairwise correlation coefficients. In this case, the values are taken that show a high density of stochastic relationship between the relevant indicator of formation and distribution of financial resources of local budgets and the indicator of the Sustainable Development Goals. There should also be an unidirectionality of Pearson's coefficients with the intended purpose of the indicator. The progress in achieving the strategic objective (subobjective) is based on the indicators with the highest correlation coefficients. It is substantiated that significant progress was made at the regional level in 2015-2021 with regard to Goal 17 «Partnership for Sustainable Development», since positive trends in the dynamics of 55% of the indicators of strategic objectives («sub-goals») were recorded. The author's further research will focus on assessing progress towards achieving the Sustainable Development Goals in Ukraine, the financial support of which is the responsibility of local self-government bodies, especially in the context of martial law.

Key words: sustainable development, strategic task, goal, financial autonomy, local authority, local budget.

Стратегічні аспекти фінансового забезпечення цілей сталого розвитку: регіональний вимір

Актуалізація і практична реалізація концепції сталого розвитку в Україні розпочалася після 2015 р., коли наша держава офіційно приєдналася до глобального процесу забезпечення Цілей сталого розвитку. Мета статті полягає у дослідженні ролі місцевого самоврядування у фінансовому забезпечені стратегії досягнення Цілей сталого розвитку України в умовах обмеженості бюджетних ресурсів і децентралізації. Під час проведеного аналізу стратегічної ролі місцевого самоврядування у фінансовому забезпеченні Цілей сталого розвитку України встановлено, що органи муніципальної влади, фінансові ресурси яких складають 35% державних фінансів, відповідальні за досягнення стратегічних завдань у розрізі 7 Цілей (41,2%). Для оцінювання стратегічного потенціалу фінансового забезпечення Цілей сталого розвитку на регіональному рівні запропоновано авторський методичний підхід, який передбачає врахування коефіцієнтів парної кореляції Пірсона, які показують високу щільність стохастичного зв'язку між відповідним показником формування і розподілу фінансових ресурсів місцевих бюджетів й індикатором Цілі сталого розвитку, а також мають бути однонаправлені з цільовим призначенням індикатора; оцінювання прогресу в досягненні стратегічного завдання (підцілі) проводиться на основі індикаторів з найвищими значеннями коефіцієнтів кореляції. Обґрунтовано, що на регіональному рівні упродовж 2015-2021 рр. значного прогресу досягнуто щодо Цілі 17 «Партнерство заради сталого розвитку», оскільки зафіксовані позитивні тенденції у динаміці 55 % індикаторів стратегічних завдань (підцілей). Перспективою подальших досліджень автора буде оцінювання прогресу щодо досягнення Цілей сталого розвитку в Україні, фінансове забезпечення яких віднесено до зони відповідальності органів місцевого самоврядування, особливо в умовах воєнного стану.

Ключові слова: сталий розвиток, стратегічне завдання, ціль, фінансова автономія, орган місцевого самоврядування, місцевий бюджет.

Formulation of the problem

Sustainable development is a concept that underpins the activities of the United Nations and has become the foundation of public administration in the vast majority of countries. The essence of the state policy of sustainable development is to coordinate and harmonise the economic, social and environmental spheres of the society to meet the urgent needs of present and future generations in such a way as to prevent or minimise the loss of the natural resource potential of the planet Earth. The basis of sustainable development is to ensure parity of relations in the triad of «people - economy - nature». Ukraine, like other UN member states, has joined the global process of implementing the Sustainable Development Goals in 2015 after their approval by the UN Summit. In 2016-2017, large-scale and comprehensive measures were taken to adapt the Sustainable Development Goals to the Ukrainian realities of sustainable development. This process resulted in a national system based on 86 targets to achieve the national Sustainable Development Goals.

The essence, specificity and regional features of financial support for sustainable development are studied by such scholars as: I. Dehtiarova, O. Melnyk, & Ya. Romanchenko, who, having analysed the application of the best practices of the European Union, propose a system of economic and financial instruments for the formation of strategies for sustainable development of regions and environmental policy [2]; I. Vasylchuk investigates the place of sustainable development finance in the system of finance and classifies its types according to the motivation of financial capital providers [3]; O. Tulai argues that the financial support of state social programmes aimed at improving the level and quality of life, reducing unemployment, forming modern social protection practices, improving working conditions, developing the healthcare and education systems contributes to the achievement of the Sustainable Development Goals of Ukraine [4]; based on an analysis of 2459 articles (2000-2020) on poverty reduction using V.O. Sviewer, Y.Yu., J. Huang argue that poverty reduction is the top priority among the 17 Sustainable Development Goals [5]; S. Kovalivska, V. Barannik propose the main directions of ensuring the achievement of the Sustainable Development Goals through the intensification of interregional cooperation in Ukraine [6]. M. Dziamulych proposed offered recommendations for improving the efficiency of financial planning and public administration of regional development, which consist in creating a favourable investment climate, developing innovative financial instruments and supporting regional entrepreneurship development [7].

O. Liakhovych et al. substantiate the priority directions of ensuring the financial security of the region based on the impact of the financial market, corporate sector and public finance security factors on the achievement of the Sustainable Development Goals [8]. О. Labenko argues that, under the influence of the COVID- 19 pandemic and the russian-Ukrainian war, it is impossible for developing countries to achieve the Sustainable Development Goals by 2030 without additional financing from domestic public resources (or revenues), international public resources, domestic private resources, or international private resources [9]. In addition, this study is a continuation of the author's previous work on solving the problems of financial support for the regional development [10-12].

Formulating the goals of the article

Presentation of the basic material of the study

The last 17th Sustainable Development Goal, Partnerships for the Goals, cannot be directly attributed to any of the sustainable development areas, but it is tangential to the other Goals. Goal 17 «Partnerships for the Goals» envisages the solution of 3 tasks, is the responsibility of the Cabinet of Ministers of Ukraine and local authorities, and is checked by monitoring 4 indicators.

Table 2 Indicators of formation and distribution of financial resources of local budgets of Ukraine in 2015-2021

Source: Compiled and calculated based on the data in [17, p. 9-10]

The data in Table 1 shows that in 2015-2021, the financial autonomy of local budgets in Ukraine increased by 23.4%, meaning that in 2021, local budget expenditures were covered by 2/3 of their own revenues, compared to only 43.0% in 2015. The share of own revenues of local budgets in total revenues increased by 24.2%. In other words, the above dynamics show a positive movement of local budgets towards deepening the processes of fiscal decentralisation, when the volume of local authorities' own financial resources has increased by more than 3 times over the 7 years of the decentralisation reform, while total revenues and expenditures of local budgets have increased by 2 times.