FORMING OF EFFECTIVE INTER-BUDGET RELATION SYSTEM IN SCOPE OF BUDGET DECENTRALIZATION

The concept of inter-budget relations and mechanisms of their financial regulation was reviewed. Transfers as instruments of inter-budget regulations were characterized. Tendencies of transfers' utilization in budget processes were identified. Main problems of inter-budget relations development in Ukraine were reviewed. Ways for improving of financial management of budgets of local authorities and arbitrariness were proposed. Functioning of cross-budget relations system in today's Ukraine situation brings the following conclusion: incomplete theoretical basis of cross-budget relations causes partial utilization of benefits of this system as well as potential of budget mechanism during ensuring socio-economic development of the state and its regions.