LOCAL BUDGET AS INSTRUMENT OF ECONOMIC AND SOCIAL GROWTH: EXAMPLE OF SEVASTOPOL

The article considers peculiarities of applying budget levers for the development of city in the conditions of transforming tax and budget system, determines the main difficulties in the realization of programs of social and economic development by means of budgeting. Aim of the article is analysis of current possibilities for applying theoretical approaches in practice of financial management of social and economic development on the example of local budget of Sevastopol. Conclusions: Local budget and budget levers are for the time being decisive in social and economic development of cities. Concentration of financial resources in single budget system permits to realize advanced programs and strategic plans. Priority of the state policy of Ukraine is provision of the reliable social protection for the most vulnerable population: invalids, combatants, veterans of war and labor, family members of dead soldiers, Chernobyl cleanup veterans, pensioners, families with children, disadvantaged and other unprotected citizens. Their social and economic interests may be realized within the framework of budget mechanisms with the participation of highly qualified financial experts and business practitioners. Science and higher education system accumulating financial innovations, advanced experience and the newest technologies may activate financial methods of social and economic development.