Evaluation of Decentralization Influence on Budgetary Regulation Process

The purpose of the article is to study the theoretical foundations of decentralization, to analyze the indicators of the efficiency of cash management and to identify problems that have arisen as a result of the reform of intergovernmental fiscal relations. The article deals with problems of functioning of local budgets and regulation of intergovernmental fiscal relations under conditions of budget decentralization. The main directions of the budget policy introducing a new mechanism of budget regulation and equalization have been described. Suggestions for the functioning of local finance have been provided. The problems of intergovernmental financing have been identified and ways of their solution have been proposed. It has been noted that as a result of the decentralization process, the mechanism of the use of monetary resources has changed, therefore, an analysis of the efficiency of budget filling and rational use of budget funds is necessary to assess the actual state of affairs. The object of the study was the united territorial communities of Ukraine and their structure on subsidization in the conditions of modern reforms. On January 1, 2019, 876 OTGs were created in Ukraine as a result of the association of 4010 territorial communities (36.6% of all territorial communities), which covers 37.6% of the country's territory. Elements of scientific novelty are developed criteria, which are isolated according to the results of the research: the basic grant should contribute to the fiscal capacity of local budgets; the amount of transfers must correspond to the financial security of the macroeconomic financial stability of the region and promote its economic growth; the system of intergovernmental transfers should stimulate local authorities to form their own revenues in local budgets; the transfer system should provide coverage of vertical and horizontal imbalances. It has been determined that the basis of intergovernmental relations should be the volume of transfer payments to certain territorial units, which should take into account such indicators as real incomes and the amount of substantiated expenditures. It has been concluded that the system of intergovernmental transfers should stimulate local authorities to form their own revenues in local budgets. Further research will be aimed at deepening the analysis of the impact of decentralization on the incomes and expenditures of territorial communities in the Transcarpathian region.