ISSN 2519-4216
e-ISSN 2519-4313
UDC 34
Law Journal of the National Academy of Internal Affairs
- self-government; legal regulation; fiscal decentralisation; European integration processes; medium-term planning
- https://doi.org/10.63341/naia-chasopis/1.2025.27
- Pages 27-47
In today’s globalised world, the issue of legislative harmonisation has gained particular relevance, especially in the context of institutional support for the budget process at the local level. The aim of this study was to determine the optimal balance between unification and adaptation in the process of legislative harmonisation concerning the institutional framework of the local budget process. To achieve this objective, a comprehensive research methodology was employed, including comparative legal analysis, historical-legal method, formal- legal method, as well as systemic, institutional, and functional analysis of the regulatory frameworks of Central and Eastern European countries. The study revealed that the Polish and Estonian approaches demonstrate an effective model of balancing standardisation with localisation, whereby general principles of the budget process are established while preserving flexibility for municipalities. It was established that institutional coordination mechanisms, particularly advisory councils and specialised committees involving representatives from various levels of government, play a key role in achieving this balance. A comprehensive approach to legislative harmonisation was proposed, combining centralised guidance with decentralised implementation, ensuring both adherence to general principles and consideration of local specificities. Key institutional challenges in harmonisation were identified, including insufficient professional training of financial department staff and limited technical capacity in Ukraine and Serbia compared to Poland and Estonia. The necessity of enhancing the institutional capacity of local self-government bodies was substantiated through the introduction of mandatory professional development programmes, improving the regulatory framework by eliminating contradictions between declared local budget autonomy and actual restrictions, and strengthening coordination between national and local levels through specialised mechanisms such as Poland’s Joint Commission. The findings of this study can be utilised in developing legislative harmonisation strategies for countries pursuing European integration and in refining existing mechanisms for coordinating the budget process across different levels of government
References
[1] Ahn, B., Friesenecker, M., Kazepov, Y., & Brandl, J. (2023). How context matters: Challenges of localizing participatory budgeting for climate change adaptation in Vienna. Urban Planning, 8(1), 399-413. doi: 10.17645/up.v8i1.6067.
[2] Alexandru, D., & Guziejewska, B. (2023). Rationalization of the local budget economy: A comparative analysis of the legislative basis in Poland and Romania in the concepts of positive law and natural law. Ekonomics and Law, 22(1), 5-20 doi: 10.12775/eip.2023.001.
[3] Bonnett, N., & Birchall, S. (2022). The influence of regional strategic policy on municipal climate adaptation planning. Regional Studies, 57(1), 141-152. doi: 10.1080/00343404.2022.2049224.
[4] Carbonara, E., & Parisi, F. (2007). The paradox of legal harmonization. Public Choice, 132(3-4), 367-400. doi: 10.1007/s11127-007-9162-0.
[5] Chikanayev, S. (2023). The theoretical framework for international and regional unification and harmonisation of the public-private partnership legislation through model laws. In J. Bäumler, C. Binder, M. Bungenberg, M. Krajewski, G. Rühl, C.J. Tams, J.P. Terhechte & A.R. Ziegler (Eds.), European yearbook of international economic law 2023, (pp. 455-483). Cham: Springer. doi: 10.1007/8165_2023_110.
[6] Chugunov, I., & Liubchak, I. (2023). Institutional framework for budget planning. Scientia Fructuosa, 152(6), 99-109. doi: 10.31617/1.2023(152)07.
[7] Gavkalova, N., Akimova, L., Zilinska, A., Lukashev, S., Avedyan, L., & Akimov, O. (2022). Functioning of united territorial communities and identification of main problems of organizational support of local budget management. Financial and Credit Activity-Problems of Theory and Practice, 2(43), 107-117. doi: 10.55643/ fcaptp.2.43.2022.3708.
[8] Ghetti, R. (2018). Unification, harmonisation and competition in European company forms. European Business Law Review, 29(5), 813-842. doi: 10.54648/eulr2018031.
[9] Harasymiv, Т. (2023). Problems of harmonization of national legislation to international legal standards. Bulletin of Lviv Polytechnic National University. Series: Legal Sciences, 10(40), 12-19. doi: 10.23939/law2023.40.012.
[10] Harbinska-Rudenko, A., Volynets, V., & Chornoivan, Y. (2022). The relevant legislative changes in the implementation of local budgets of Ukraine. Analytical and Comparative Jurisprudence, 5, 222-226. doi: 10.24144/2788-6018.2022.05.41.
[11] International Monetary Fund. (2023). Retrieved from https://www.imf.org/en/Publications/WEO/ weo-database/2023/October/select-subjects?c=914,913,963,918,944,967,921,943,962,964,968, 922,942,186,926.
[12] Kanniainen, J.P., & Pekkola, E. (2023). Between harmonization and unification in the European higher education area: Scenarios for the European university initiative. Tertiary Education and Management, 29, 315-330. doi: 10.1007/s11233-023-09131-0.
[13] Kenno, S., Lau, M., Sainty, B., & Boles, B. (2020). Budgeting, strategic planning and institutional diversity in higher education. Studies in Higher Education, 46(9), 1919-1933. doi: 10.1080/03075079.2019.1711045.
[14] Khan, A. (2024). Understanding the budget process. In Fundamentals of public budgeting and finance (pp. 167-200). Cham: Palgrave McMillan. doi: 10.1007/978-3-031-53674-8_5.
[15] Lubis, J., Simamora, M. S., Sutejo, B., & Syafrizal, D. (2024). The influence of globalization on the harmonization of international and national law. International Journal of Law and Governance, 1(3), 113-119.
[16] Naji, A.H., Hashim, I.S., & Mohammed, H.J.M. (2024). Improving the budget process through effective budget planning strategy. International Journal of Business and Management Sciences, 4(2), 16-28. doi: 10.55640/ ijbms-04-02-02.
[17] Nurmatov, T. (2022). Improving the mechanisms for harmonization and unification of the legislation of the states parties to the Treaty of the Eurasian Economic Union. Alatoo Academic Studies, 2, 328-325. doi: 10.17015/aas.2022.222.42.
[18] Omukuti, J., Barrett, S., White, P., Marchant, R., & Averchenkova, A. (2022). The green climate fund and its shortcomings in local delivery of adaptation finance. Climate Policy, 22, 1225-1240. doi: 10.1080/14693062.2022.2093152.
[19] Parkhomenko, N., Podorozhna, Т., Tarakhonych, T., Husarev, S., & Biloskurska, O. (2024). Implementation of the Association Agreement with the EU by adapting Ukrainian legislation to EU law. Social and Legal Studios, 7(1), 184-193. doi: 10.32518/sals1.2024.184.
[20] Pontoh, R.F., Mawuntu, J.R., Pinasang, D.R., & Setiabudhi, D.O. (2023). Synchronization, harmonization and facilitation: Institutional linkages and legislative in drafting of regional regulations. The Seybol Report, 18(8), 541-550. doi: 10.5281/zenodo.8285918.
[21] Rogers, N., Adams, V., & Byrne, J. (2023). Factors affecting the mainstreaming of climate change adaptation in municipal policy and practice: A systematic review. Climate Policy, 23(10), 1327-1344. doi: 10.1080/14693062.2023.2208098.
[22] Sáez-Martín, A., López-Hernández, A., & Caba-Pérez, C. (2021). Municipal size and institutional support as differential elements in the implementation of freedom of information legislation by Spanish local governments. Public Management Review, 23(1), 70-90. doi: 10.1080/14719037.2019.1668466.
[23] Smolinska, S. (2022). State of financial support of local budgets. Modern Economics, 33, 110-116. doi: 10.31521/modecon.v33(2022)-14.
[24] Stetsiv, I. (2024). Legal regulation of the economic mechanism of public administration of food security in terms of ensuring food quality. Investments: Practice and Experience, 8, 258-263. doi: 10.32702/2306- 6814.2024.8.258.
[25] van Gerven, W. (2004). Harmonisation of private law: Do we need it? Common Market Law Review, 41(2), 505-532. doi: 10.54648/cola2004005.
[26] Vdovichen, A., Chornovol, A., & Tabenska, Y. (2021). Budget planning in the conditions of institutional transformations. Scientia Fructuosa, 135, 90-100. doi: 10.31617/VISNIK.KNUTE.2021(135)07.
[27] Yesimov, S. (2024). Judicial power in implementing the principle of separation of powers in the budget process of Ukraine. Uzhhorod National University Herald. Series: Law, 2(81), 120-126. doi: 10.24144/2307- 3322.2024.81.2.19.