Generation of Local Authorities' Finances in Context of Ensuring National Financial Security

The article explores special aspects of generating finances of local authorities and outlines perspectives for implementing the budgetary decentralization in the context of ensuring national financial security. The current conditions and problems of generating financial resources of local authorities are studied. It is found that the national financial security should include a set of measures designed to protect financial interests at all levels of financial relations within a country. The issue of reallocation of local financial resources through the budget system as a result of budgetary decentralization is explained. The amount of cross-budget transfers to local budgets has been analyzed which results prove the inability of local authorities to comply independently with their proper or delegated obligations. The application of the local budgets financial sustainability calculation index has been suggested, which lies in an unbiased evaluation of the rate of self-sufficiency of local budgets and the efficiency of the activities of local authorities in the face of budgetary decentralization.