DIRECTIONS OF DEVELOPMENT OF THE SYSTEM OF INTERBUDGETARY RELATIONS IN THE CONDITIONS OF DECENTRALIZATION

Relevance of the research topic. The effectiveness of inter-budgetary relations is an important prerequisite for stabilizing socio-economic processes. Decision-making on the appropriateness of the use of appropriate budgetary tools should be determined based on the assessment of changes in the level of economic development of administrative-territorial units. Timely consideration of the impact of exogenous and endogenous factors on budget sustainability will contribute to the development of sound budget architecture. Accordingly, in modern conditions, it is advisable to strengthen decentralization processes. The tasks of improving the quality of development of the system of inter-budgetary relations became important. Formulation of the problem. Important tasks in the current conditions of development of the system of state and local finances are: strengthening the financial base of local governments; delimitation of expenditure powers between public authorities and local governments; equalization of disproportions of socio-economic development of administrative-territorial units; search for alternative sources of local budget revenues; optimal choice of fiscal instruments and levers; optimization of the structure of revenue and expenditure powers of local governments. Analysis of recent research and publications. Problems of development of the system of interbudgetary relations in the conditions of budgetary decentralization are quite widespread in scientific researches. These are the works of famous domestic and foreign scientists: J. Keynes, P. Samuelson, J. Stiglitz, V. Tanzi, O. Kirilenko, I. Chugunov and others. Selection of unexplored parts of the general problem. The above issues are relevant in connection with the deteriorating trend of economic development, which requires a number of specific tasks related to the development of financial instruments of the system of intergovernmental relations. Problem setting, research goals. The objectives of the study are: to reveal the role of the system of inter-budgetary relations in the regulation of socio-economic development of administrative-territorial units; substantiate the features of the system of intergovernmental relations in modern conditions; to analyze and estimate revenues and expenditures of local budgets. The aim of the study is to reveal the directions of development of the system of inter-budgetary relations in the conditions of budget decentralization. Method or methodology of the study. The article uses a set of research methods: a systematic approach, statistical analysis, structuring, synthesis, etc. Presentation of the main material (results of work). The role of the system of inter-budgetary relations in the regulation of socio-economic development of administrative-territorial units is revealed. The peculiarities of the system of intergovernmental relations in modern conditions are substantiated. The analysis and estimation of incomes and expenses of local budgets is carried out. The directions of development of the system of interbudgetary relations in the conditions of budgetary decentralization are determined. Field of application of results. The results of the study can be used in the process of forming and implementing budget policy. Conclusions according to the article. The validity of the budget policy in terms of inter-budgetary relations is an important condition for achieving national socio-economic interests. The economic crisis caused by the coronavirus epidemic and the general reduction in the growth rate of revenues to local budgets have exacerbated the problems associated with the development of the system of intergovernmental relations. Given the transformational processes of development of the domestic economy, the issues of developing new and improving the existing financial and budgetary tools for regulating intergovernmental relations are important.