ADMINISTRATIVE AND FINANCIAL DECENTRALIZATION AS A FACTOR OF REFORMING FINANCIAL CONTROL AT LOCAL LEVEL

Abstract

During the study, the author identified the main factors that became a prerequisite for decentralization reform. The main directions of the decentralization reform are outlined: redistribution of revenues at the local level, creation of united territorial communities (UTCs), on-site redistribution of functional responsibilities. The main differences in the process of filling and spending of local budgets of newly created UTCs after the reform were identified. The distribution of controlling functions over the budgetary process of the UTCs has been identified. The positive aspects of the reform are outlined: ensuring macroeconomic stability at the local level; ensuring the financial autonomy of local authorities regarding the financing of their functions and tasks; strengthening the responsibility of the UTCs to the public; creating competitive conditions among administrative levels etc. It has been proved that decentralization contributes to a more efficient satisfaction of the public needs as well as the growth of welfare, increases the responsibility of the UTCs spendings on rational and reasonable financing of economic programs at the local level, promotes greater public control over the targeted use of budgetary resources.