researcH of tHe role of tHe Water management comPlex in tHe formation of financial floWs

In this study, the role and characteristics of water-economic rent in the generation of ecological financial flows is shown. The potential of such payments is determined on the basis of comparison of the actual indicators with the imputed ones. The calculations of actual and imputed rent (for closing costs) for the branches of the economy and regions are carried out. The combination of these approaches makes it possible to see the current level of rental income and determine the prospects for their adjustment. In the regional context, the level of economic development influences the formation of rent. Those regions that have the highest rates of actual payments are the leaders and for the closing costs. To characterize the water management complex as a market participant, the indicators of fiscal return and investment return of water use are calculated. In contrast to expectations, in the regions, the most consumed water (due to population growth, industrial facilities), fiscal return is less. A greater fiscal impact of rental payments for water use is found in regions with lower levels of economic development. The reasons for this situation include the current tax rates (according to the Tax Code of Ukraine) and the insignificant volume of consumed water. Therefore, in order to increase the efficiency of the water management complex in financial markets, it is necessary to take into account the level of economic development of a particular region by adjusting existing rates for special water use or introducing additional coefficients. The overall value of the investment return of water use for Ukraine is 0.155. Like indicators of fiscal returns, regions with a lower level of economic development will be more effective in investing. In general, the main strengths of rental income can be attributed to the stable formation of local and state budgets, their situational growth, the strengthening of the role of local revenues. Among the negative factors are low indicators of actual water rent, significant differences between actual receipts and potential like. Opportunities and threats are associated primarily with the significant potential and the influence of unfavorable factors.


introduction
An important economic mechanism of the financial market of the state is payments for the use of water re sources. It is through the generation of these payments that significant financial flows are formed that contribute to the development of the water management complex (WMC) and its provision with the necessary means. The experience ISSN 2226-3780 of Ukraine considers them primarily as repressive mecha nisms aimed at creating additional financial pressure on the subjects of activity. However, in a significant number of cases, the amounts of payments are not significant, and such that they can significantly affect the work of enterprises. Despite this, the general opinion is formed in a way that does not contribute to the formation of a balanced and rational attitude to environmental issues and the participation of enterprises in preservation of the environment.

the object of research and its technological audit
At the same time, environmental payments actually paid by enterprises, organizations, institutions for pollu tion of the environment are an important indicator that forms an idea of the features of generation of ecological financial flows and the weight of the water component in this process. Environmental payments consist in environ mental tax and penalties for violation of environmental legislation. The problems of formation and improvement of environmental payments in Ukraine have been thoroughly considered in studies [1][2][3][4][5][6]. However, their role in the formation of financial flows of the state, the creation of investment resources, etc. is not fully investigated.

the aim and objectives of research
The aim of research is to determine the role and fea tures of rental revenues generated in the water manage ment complex (WMC) of Ukraine as components of the financial and investment markets of Ukraine.
To achieve this aim, the following objectives are set: 1. Analysis of the structure of tariffs for water supply in Ukraine.
2. Determination of the specific gravity of the rental component in the tariffs for water supply.
3. Comparison of imputed and actual water rent. 4. Assessment of fiscal and investment returns to water rents.
5. Definition of integral characteristics of the forma tion of rental income on the basis of situational analysis.

research of existing solutions of the problem
In general, let's note that the total value of environ mental payments for all activities for the state is sig nificant and contains significant financial potential [7]. In the EU countries, these payments play the role of stimulants, encouraging them to pay for changes in eco logical behavior (establishing additional filters, means of protection, etc.) [8,9]. Important, in our opinion, is the positive aspect that the vast majority of the declared payments in Ukraine are paid. This gives grounds for the conclusion that the payment discipline of the system as a whole and the WMC in particular are high (in recent years, the percentage paid in the declared environmental payments in WMG varies within 85-90 %).
Environmental payments for water resources (like other pollution) are significantly differentiated by industry. The main payers (and therefore environmental polluters) are energy, metallurgical and processing enterprises [10]. There are certain features in the dynamics and forecasting of environmental payments not only in the sectoral, but also in the regional context [11].
Like payments for pollution, water tariffs have a sig nificant impact on attracting financial resources to the water complex. The experience of the EU countries shows that their tariff policy is formed at the national level and is mainly within the competence of national govern ments [12,13]. At the same time, when forming tariffs, the countries rely on the Directive of the European Par liament and the Council of Europe No. 2000/60/EU. In this sphere, the subjects using water services are divided into 3 categories: agriculture, households and private en terprises. Accordingly, the cost of services is different.
It can be argued that an ecological and economic mecha nism for regulating the use of natural resources has already been formed in Ukraine [14]. However, a number of important aspects are without attention of practitioners and scientists. In particular, it is the sphere of water supply that has been little explored in terms of the role of environmental pay ments in ensuring the functioning of the water management complex. The issues of the methodology for determining the rents are very relevant and controversial. To solve them, the analysis of the current structure and efficiency of rental payments in the water sector is of great importance.

methods of research
To solve the objectives of this study, statistical data are used on the actually paid environmental payments for water use (water rent) in Ukraine in terms of industries and regions in 2014-2015. Some data until 2013 are used due to political events taking place on the territory of the state.
In determining the specific gravity of water rents, the average value was used in the structure of the tariff for water use. The specific gravity of the rent is determined only for the average, but also for the mode, the median, the minimum and maximum tariff values.
Actually paid rent is compared with the imputed one to show the possible potential role of payments for the special use of water in the formation of financial flows. Estimated rental payments are determined on the basis of the maximum costs of water development in the re gion with a certain volume of water consumption (closing costs). At the same time, the cost of water resources as the basis of human life and existence, flora and fauna; current annual expenses for the formation and protection of accessible water resources, as well as the price of water as a natural resource; the cost of water resources by the effect of economic use are also taken into account [10].
The participation of monetary receipts in the financial market is characterized by indicators of their fiscal returns and investment returns. The indicator of fiscal return for the water management complex is calculated on the basis of the ratio of rent payments, formed within the state or region, and the amount of consumed fresh water High rates of return indicate a more favorable situation with regard to the receipt of funds in the sphere of water use, while low rates indicate the existence of certain local problems.
The indicator of investment returns for the water management complex is calculated on the basis of the ratio of rental payments that are formed within the state or region, and the volume of investment. High rates of ISSN 2226-3780 return testify to the participation of water rents in the formation of investment flows.
To determine the specifics of the formation of financial flows as a result of the collection of water rents, a com parison is made between the average for Ukraine and regional values, industry values, etc.

research results
For a better understanding of the current tariff policy, let's determine the structure of the tariff. Each payment for the use of water resources includes in its composition a specific list of elements, which value determines the fi nancial expression of the cost of the service. It is clear that the formation of a service for the water sector is a complex process that encompasses the chain from the water abstrac tion from natural sources to its supply to the end user. In addition, other structures are involved in this process, which spend their resources on supporting the water infrastructure.
The basic components of the water tariff are expen ses for the purchase of energy carriers (about 30-35 %), wages (25-30 %), taxes (14-15 %), depreciation (about 7 %) and other. It is the increase in prices for energy car riers causes an increase in the tariff for water supply and sanitation services. Given Ukraine's significant dependence on external energy supplies, the situation is critical and acquires the features of an exogenous impact on water tariffs.
According to the available information of 2015, the tariffs for water supply vary by region, which is due to both the nature of the service and the economic realities of specific areas. The highest tariffs for the population were typical for Uzhgorod, Kirovograd and Rivne, the lowest -for Ternopil. For commercial consumers, the highest tariffs were fixed for Uzhhorod, the lowest -for Ternopil and Zhytomyr.
The majority of regions do not reimburse these tariffs for the actual cost of provided services. In 2015, when providing water supply services to the population, only 5 regions were able to reimburse their expenses, and when providing services to commercial institutions -7. So, new tariffs are approved annually, but can't cover the costs of services. Perhaps the solution to this problem is the provision of subsidies for private institutions and subsidies for the population. At the same time, it also requires con siderable financial resources that will significantly increase the deficit of the state budget.
For a significant number of cases, the factor that is also causes this state of affairs, is the lack of transparency in the distribution of funds from water supply and sanitation services. In the years a scheme has been formed when a sufficiently large number of organizations are involved in the process of providing services, and eventually the funds migrating between them are included in the cor ruption chains and do not form a stimulating influence on the development of the water complex.
The results of the statistical analysis of these indica tors of 2015 are indicative of the relationship between tariffs for water supply and rental payments (Table 1).
On average in Ukraine, the rent rate is no more than 4 % of the tariff for centralized water supply.
Given the small rental income for water use, it is ad visable to compare the actual performances with the esti mated ones, which made it possible to show the possible, potential role of payments for special water use in the financial market of Ukraine. To this end, calculations of actual and imputed rent (by closing costs) are made in respect of the branches of the economy and regions. The imputed rent is determined on the basis of the approach, which takes into account the closing costs that are present in the context of the increase in water resources [10]. The combination of these approaches allows to see the current level of rental income and determine the prospects for their adjustment [11].
As the results of calculations show, sectoral priorities for actual rent and for closing costs have both similar features and distinguishing features ( Table 2, 3). Thus, when using both approaches, there is a clear predominance of revenues from the production sector (almost 60 % for actual rent and more than 40 % for imputed), which is the locomotive of the formation of payments.
A characteristic feature is the significant differentiation between numerical values. If for actual rent the diffe rence between the maximum and minimum values is more than 12 times, then the indicators for closing costs differ only by 2.5 times.
In the regional context, the level of economic develop ment influences the formation of rent. Those regions that have the highest rates of actual payments are the leaders and for the closing costs. The regionsoutsiders for two types of rent are Volyn, Zakarpattia, Sumy and Ternopil regions. At the same time, the ratio of the maximum and minimum values behind these approaches is excellent. If for a real rent such ratio is 56.2 times, then for closing costs -several times more.
So, the water complex is able to generate a significant value on the basis of rental payments. The amount of revenues in the amount of 6.1 billion UAH, which takes into account the main costs in the water complex, can serve as a guide for the possible dynamics of changes in indicators. At the same time, a significant increase in tariffs in the conditions of transformations and crisis pheno mena is quite dangerous, as it can affect the formation of non payments, business braking, rising production costs, social tension and the like. The best option is a phased increase in payments and their harmonization with the parameters of the state's social and economic development.
The related characteristics of the WMC as a partici pant in the financial market include the indicator of fis cal return and investment return of water use. Indicators are concentrated in the financial sphere, which allows to determine the ratio of rental characteristics in financial processes.   note: * -payments are taken into account for special water use at the level of local budgets; data for 2013 are used. Technology audiT and producTion reserves -№ 3/5(35), 2017

ISSN 2226-3780
According to the obtained data, with the overall index for the country at 0.11 UAH/m 3 , the regionsleaders in terms of fiscal return were Chernivtsi (with a value of 0.41 UAH/m 3 Table 4).
It is logical to assume that in the regions most con sumed by water (due to population growth, industrial facilities), and fiscal return should be significant. How ever, this is not observed. Kharkiv region occupies only 15 place, Kyiv -18, Kyiv region -24. But regions with lower levels of economic development are more effective. It is clear that the reasons for this situation include the current tax rates (according to the Tax Code of Ukraine) and the insignificant amount of consumed wa ter. At the same time, it is necessary to take into account the level of economic develop ment of a particular region that based on the available potential can pay higher tariffs. To take into account such situation, adjustments are required by existing rates for special water use or introduction of additional coefficients that take into account the level of economic development.
The spatial variation in fiscal returns is moderate. The difference between the maxi mum and minimum values (ChernivtsiOdessa region) is 20.5 times, which is not a significant value for the financial sector. A characteristic feature of the regional distribution ( Fig. 1) is the predominant localization of most regions within the values of 0.04-0.09, which gives grounds for asserting the existence of a certain territorial constant (1) for fiscal returns. De spite such territorial concentration, it requires its growth, because it remains at a low level. Another territorial constant (2) is the range of values 0.11-0.18, to which a significant number of regions also belong.
An important aspect of the formation of rental payments for special water use is to deter mine its place in total payments for all natural resources. The indicator for Ukraine as a whole is 5.4 %. In the structure of incomes of local budgets across the country, it is one of the highest, which is a positive side (for a sig nificant number of areas, the top positions are paid for land). In the regional dimension, it is possible to single out a whole group of regions whose values exceed the level of the state. Among them the main are Chernivtsi region (20.7 %), Zaporizhzhia (13.5 %), Mykolaiv (8.7 %) and 9 other regions. The regionsoutsiders by their values are Odessa and Volyn regions (Fig. 1).
The indicator of the investment return of water use for the market forms an idea of the capacity, the potential of water payments in the financial market. If rental income is sig nificant relative to the amount of investment, it allows to talk about their significant impact on the financial market, low -their effect is not significant enough. As water payments, let's take rental income at the level of local bud gets, investments -investments in the financial sector of the economy (financial and insurance activities, real estate transactions, information and telecommunications).
In accordance with the distribution, the leading regions, together with others, form a highlevel group of the invest ment return of water use for the financial market (Group I), the outsider regions are below the middle (Group IV). The remaining regions are distributed between the high level group (Group II) and the middle (Group III) group.
The leading positions of regions with a lower level of development are explained, first of all, by favorable ratios of rental payments on investments in the financial sector of the economy. After all, to get high values, it is necessary not only a rental income, but also the necessary investments.
Leading regions are such favorable attitude. They are not determined by high rental income (with the excep tion of the Zaporizhzhia region) and a significant saturation of the market with investments. The combination of these factors and brought them to the leading. If take into account Dnipropet rovsk and Donetsk region, then they show significant rental income, how ever, investments in their financial markets are so significant that they level out water rent. At the same time, such smoothing is not signifi cant, which causes the localization of these regions within the framework of group III.
The spatial variation between the values is significant, which is a cha racteristic feature of financial mar kets. The average level of investment return of water use is exceeded in nine regions.

sWot analysis of research results
To determine the integral cha racteristics of the formation of ren tal income, let's apply the situatio nal (SWOT) analysis, which allows to record clear consequences and determine the range of prospective features of positive (opportunities) and unfavorable (threat) content. Strengths: 1. Receipts to local and state bud gets of rental payments for the use of water resources are implemented.
2. The prevailing tendency of growth in actual rental payments for the use of water resources (under the consolidated budget of Ukraine); strengthening the importance of local budgets in rental income in recent years. note: * -payments are taken into account for special water use at the level of local budgets; data for 2013 are used.