Financial decentralization as the direction of strengthening of the region economic security

The paper assessed the degree of dependence of local budgets the size of intergovernmental transfers. As a result of the analysis of the formation of the revenues of local budgets of Ukraine for 2001?2016 made findings that the share of subventions and grants budget is almost half of all revenues for local budgets and testifies to the increasing gap between own resources budgets and contributions align. The author stressed that reforming the Ukrainian economy on the basis of decentralization is the priority of strengthening regional economic security and fully complies with the European requirements and motivational mechanism concerning the fiscal autonomy of the regions and their proper resourcing. Analysis the changes of legal documents on fiscal decentralization in Ukraine and assessed their impact on the economic security of the regions. In reforming local governments need to create the appropriate organizational and financial conditions to strengthen the revenue base of local budgets. The author proposed to amend part of the redistribution of income tax, which for 2001?2014 remained the primary deductible, which formed local budgets (in 2001 its share stood at 55,0%, 2014 ? 61.9%, whereas in 2016 ? 51,7%), to expand the powers of local self-government bodies in the direction of strengthening the trust of territorial communities and required the involvement of the citizens to take fiscal policy at the local level. The scientific novelty of the research lies in summarizing and justifying the role of fiscal decentralization as a priority direction of strengthening regional economic security of Ukraine.