LOCAL BUDGETS AND INTER-BUDGET RELATIONS: THE EXPERIENCE OF EUROPEAN COUNTRIES AND PROBLEMS OF UKRAINE

The article is devoted to the study of mechanisms to organize relations inside the budget system of Ukraine and Europe effectively, namely through developing theoptimal balance between the central government budget and the budgets of local governments. The decentralization issue is examined in the context of reforming the inter-budget relations in Ukraine; particular attention is paid to fiscal decentralization, the indicators determining the level of the public power decentralization in the country. Domestic and foreign rates of income and expenditure of the central government and local governments, their shares in the consolidated budget of states, and proportions are analyzed under specific criteria. Trends to generate the revenue part of the local budgets of Ukraine and European countries are studied, the peculiarities and problems of this process are defined. The experience of Europe and Ukraine on types of taxes that are part of the local budget revenues is examined. The structure of tax revenues of local budgets is considered, potential areas that allow increasing these revenues in the structure of local budgets of Ukraine due to foreign experience are identified. Particular focus is given to the second largest source of revenue of the local government budgets. The dependence of local budgets on transfers in Ukraine and Europe is analyzed to determine the most effective elements and changes in local government in European countries that would be appropriate to introduce into the national budget system.