PLANNING OF THE CAPITAL EXPENDITURES OF LOCAL BUDGETS OF UKRAINE: THE CURRENT STATE AND PROSPECTS OF IMPROVEMENT

Introduction. A prerequisite for improving the efficiency of capital expenditures of local budgets is improving of budget planning, the widespread using of objective indicators of evaluating the feasibility of budget investments, and increasing the transparency of the budget process. Lack of proper planning when investing in long-term public facilities may adversely affect the financial viability of local governments and the current and future private sector business activity. The main purpose of capital planning is to identify and monitor the proposed capital projects and to coordinate financing and timing of their implementation in order to maximize the socio-economic impact of these projects. Therefore, the purpose of the research conducted within the article is to analyze the state and identify the prospects for development of the system of capital expenditures planning of local budgets in Ukraine. The practice of planning of capital expenditures of local budgets in Ukraine in the context of long-term, medium-term and short-term planning is investigated. The main disadvantages of the capital expenditure planning system have been identified. The study showed the low level of development of the system of planning of capital expenditures of local budgets. Particular attention should be paid to the shortcomings associated with the implementation of long-term capital budget planning and the lack of interconnectedness and continuity between long-term, medium-term and short-term plans. To increase planning efficiency, it is necessary to separate the planning of capital expenditures from current ones; carry out long-term, long-term planning; involve a wide range of participants in the planning process; create a centralized database of local assets; implement an effective system for controlling capital expenditures. The experience of US municipalities in managing the capital budget is reviewed. To increase planning efficiency, it is necessary to separate the planning of capital expenditures from current ones; carry out long-term, long-term planning; involve a wide range of participants in the planning process; create a centralized database of local assets; implement an effective system for controlling capital expenditures.