PARTICIPATION OF THE STATE, STATE AUTHORITIES, LOCAL SELF-GOVERNMENT BODIES IN ECONOMIC ACTIVITY

Abstract

The scientific article is devoted to the problems of participation of the state, state authorities, local self-government bodies (public entities) in economic activity. The Economic Code of Ukraine establishes that the state, state authorities and local self-government bodies are not economic entities (part one of Article 8). The solution to the problem of the ratio of economic entities and legal entities is possible in the proper enforcement and legal coherence of normative and legal regulation, in particular, the harmonization of tax and budget legislation in accordance with the needs of the economic (commercial and non-commercial) activity of public entities. Among the entire set of functions, those whose implementation is possible through direct participation in economic relations should be singled out: client (ordering and purchasing products for the army, educational institutions, health care, culture, state authorities), proprietary (fulfilling the role of the owner), innovative-investment, structural (promoting the formation and implementation of the national research, innovation, technical and investment policy). It was concluded that the participation of public entities in economic relations (emphasizing the normalization of relations on public regulation) and economic activity (participation in economic and civil relations as an equal participant) needs to be distinguished. In order to ensure legal certainty, the category “non-economic entity” should be removed. In the conditions of privatization of state-owned enterprises, the OECD Guidelines on corporate governance at state-owned enterprises, as well as EU acts on unbundling of ownership, should be used. It is promising to reduce the subject composition of public entities as direct participants in economic relations and the formation of a single normative model of their economic competence.