ТHE FORMATION OF LOCAL BUDGETS IN CONTEXT OF BUDGET DECENTRALIZATION

The subject of the work is the intergovernmental relations in general and the state of formation and use of local budgets in particular. The aim is to analyze the development of fiscal decentralization and local government on this basis suggest further ways of fiscal autonomy of local governments. Methodology of work. This work was based on studies of modern scientific views on the definition of the essence of fiscal decentralization and local governance in Ukraine. Results. The article is devoted to the problems of fiscal decentralization of local government in Ukraine and its financial support. The critical analysis of existing normative legal regulation of this process and suggested ways of further fiscal and financial autonomy of local authorities. The main weaknesses of the ongoing fiscal decentralization systematic and practical recommendations for their elimination in the medium and long term. Conclusions. Analysis of the impact of changes in the budget of the formation and the actual level of implementation of local budgets proves once again transferred to the local budget funding sources proved insufficient to fully finance expenditures. In addition, local authorities and government will not be able to use the expanded revenue base in its sole discretion in connection with the expansion of new powers delegated by the state. Conducting real budget reform is correlated with the reform of local government and administrative-territorial structure that will ensure increased financial independence of local budgets and the financial security of the delegated powers.