FEATURESOF BALANCING LOCAL BUDGETS IN UKRAINE

The article investigates the features of balancing local budgets in the existing conditions of local government in Ukraine. Determined that in Ukraine the system of balancing local budgets, according to the existing legislation, includes the balancing of revenues and expenditures local budgets. Showns the main tool of balancing local budgets in Ukraine remain intergovernmental transfers. Determined that the use of intergovernmental transfers as a main tool of balancing local budgets destabilized of local governments torevenues mobilisation. Shows that despite on decentralization in Ukraine in the recent years, financial capacity of local governments reduced. Proved that the intergovernmental transfers should serve as an additional tool for balancing budgets and used strictly in accordance with the laws of Ukraine. Distinguished methods of balancing local budgets taking into account possible situations: partial (equity) financing delegated responsibilities, division of state taxes and other obligatory payments collected in the territory of the local government, removal budget surplus higher level of financial resources of local budgets, balancing the budget or the budgets of higher level of other levels, settlements between budgets and others. Reasoning the necessity of using the tools of balancing local budgets for the sustainable development of local government. Offered in the case of imbalanced local budgets during a year to use tools such as budget loans (for quarterly or monthly balance) on terms of repayment to the end of a budget year or settlements between the budgets of higher and lower levels. Determined that such methods and tools should ensure the interesting of local governments in filling the revenue base of local budgets. Offered to improve theoretical and conceptual framework of the budget legislation in the allocation in Ukraine and use transfers and other tools for balancing local budgets according to established goals.