EXPENDITURES OF LOCAL BUDGETS IN THE SYSTEM OF INTERBUDGETARY RELATIONS

The subjects of research are theoretical and practical issues of planning expenditures of the budgets of local self-government. The aim of the study is to disclose the essence of expenditures of local budgets in the system of interbudgetary relations. Research methods. In the work applied a set of scientific methods and approaches, including systemic, structural, comparative, factor methods, which enabled the conceptual unity of research. Results of work. The essence of expenditures of local budgets in the system of interbudgetary relations. Peculiarities of the formation expenses of the budgets of local self-government in the conditions of economic reforms. Determined that the implementation of the budget process with the use of program-target method should provide the transparency and efficiency of local budgets; strengthening the accountability of managers of budget funds for the achievement of outcomes and monitoring the effectiveness of expenses; scheduling expenditures of local budgets for the next budget period based on socio-economic outcomes resulting from the implementation of budget programs in the previous period. Currently, there is a need to increase the transparency and efficiency of expenditures of local budgets, ensuring their connection with the strategic goals of socio-economic policy of the administrative-territorial units. Developed approaches to the formation of budget programs based on the priorities of the national and regional policy, strategic plans of development of territories and sectors of the economy in the medium and long term. Appropriate scientific justification for the separation of costs between the links of the budget system, the determining factor must be the effective use of budgetary funds. Scope of results. Local budgets. Planning of budget expenditures in the system of budgetary control. Conclusions. Expenditures of local budgets is an effective tool for the regulation of socio-economic development of territories. Features of functioning of local expenditures occur in their composition and structure, and the effectiveness of their planning determines the level of performance by local authorities of their functions and powers. Planning of expenditures of local budgets is an important component of a financial management system that ensures the formation of budgetary performance by establishing objectives for the next budget period and the prospective period with the aim of improving efficiency, effectiveness and transparency of the budget process. Reforming the system of planning of expenditures of local budgets should take into account the experience of countries with developed and transition economies, including the introduction of performance budgeting and medium-term planning into the budget process at the local government level. The approach developed European countries to program budgeting is important from the point of view of the need to strengthen fiscal discipline and improving the efficiency of expenditures of local budgets through their long-term planning and rationalization of budget allocation in priority areas of regional development. During the development of methodological basis for the compilation and execution of local budgets by program-target method, it is advisable to take into account relevant experience in system implementation, monitoring and evaluation of budget programs based on effective indicators of their performance.