The impact of fiscal decentralization on the formation of local budgets

This article is devoted to defining the principles of the fiscal decentralization. It was established the essence of the decentralization as one of the components of the management process aimed at reducing the dependence of local governments from the central government. It was considered the theoretical principles of the fiscal decentralization and proved its effect on the formation of local budgets. The features of the revenue of local budgets under decentralization through tax and non-tax revenues and other revenues (without transfers) were founded. Analyzed the revenues of local budgets in Ukraine for 2010-2016 years., the benefits and positive effects of decentralization. Systematized the features of the financial decentralization in Ukraine. Formed the choice of areas oriented on growth of economic and financial independence of regions of Ukraine. The article is examining the theoretical foundations of the fiscal decentralization, ordering features of the fiscal decentralization in Ukraine and factors of influence on the formation of the local budgets. The basic objectives of the fiscal decentralization were formed. It was established that if addressing legal, organizational and social problems the budgets of administrative units will have sufficient funds for delegated powers.