ANALYSIS OF THE IMPACT OF FISCAL DECENTRALIZATION ON THE FORMATION OF LOCAL BUDGETS IN UKRAINE

The article analyzes the influence of decentralization processes on changes in the formation of local budgets in Ukraine for the period of 2013-2017. The analysis of the dynamics of the share of local budgets in the consolidated budget of Ukraine, as well as the actual revenues of the general fund of local budgets of Ukraine in dynamics and structure, has been analyzed. It was revealed that the Government's steps aimed at financial decentralization caused significant growth of local budgets' own revenues. It is proved that a convincing factor that the effectiveness of the introduction of financial decentralization is effective is to reduce the share of subsidies of local budgets and reduce the total amount of treasury loans granted, which demonstrates a significant increase in the solvency of local budgets since the adoption of the reform of local self-government. The main problems and risks connected with decentralization of the budgetary system of Ukraine are revealed.