BUDGET OF INVESTMENT AS A COMPONENT OF LOCAL BUDGETS

The subject of research is theoretical and practical issues like the budget of the investment component of local budgets. The study is evaluating the effectiveness of the budget as the investment component of local budgets in the conditions of economic transformation. Research methods. The paper used a set of scientific methods and approaches, including systemic, structural, comparative, factorial methods that allowed to realize conceptual integrity of the study. The results of the work. The article reveals the essence of the economic development budget and carried out an assessment of its effectiveness as the investment component of local budgets . Identify the problems of the budget of local budgets in the conditions of economic transformation . The directions of strengthening the revenue part of local budgets. Range of application results. Budget management system , local budgets. Conclusions. The importance of ongoing reforms in the public administration system is determined by the principle of equality and fairness of local budgets, the delimitation of budgetary powers between the organs of state power and local self-government by rational and reasonable allocation of budget revenues and budget expenditures to ensure financial resources in accordance with certain powers. Formation of development budget will provide an opportunity for the implementation of investment projects and implementation of effective social and economic development of the administrative-territorial units. In modern conditions the important task is to enhance the investment component of local budgets, providing for the improvement of the mechanism of formation of the budget; ensuring the implementation of investment programs with the necessary financial resources for their implementation; programmatic approach for the implementation of local budgets for the implementation of investment programs; optimization of the list of subventions from the state budget to local budgets, ensuring their direction for financing the priorities of socio-economic development of the administrative territorial units; improving procedures for the implementation of local borrowing, which will increase the efficiency of the mechanism of financing of local authorities the priorities of socio-economic development of territories. In assessing the feasibility of taking decisions on the financing of investment programs of local budgets in the first place, it is necessary to assess the way in which it contributes to creating the conditions for improving the competitiveness of the economy administrative-territorial units, to ensure their sustainable development, production and productivity of the population welfare.