IMPROVING THE EFFICIENCY OF LOCAL BUDGET FORMATION IN THE CONTEXT OF LOCAL SELF-GOVERNMENT REFORM IN UKRAINE

Abstract

Without reforming local self-government and implementation of decentralization processes, it is impossi-ble to overcome the negative manifestations in the socio-economic and cultural development of territorial communities and regions, to ensure a significant increase in the level of life quality of most citizens of Ukraine. The key areas of reforming the system of local self-government in Ukraine are the division of powers between them and state executive bodies, between local self-government bodies of different levels, determining the territorial basis of local self-government bodies and executive bodies, assigning the necessary amount of resources to each level of local authorities as well as establishing the accountability of local governments to voters and the state. The lack of the own stable sources of income significantly limits the influence of local authorities on the socio-economic development of the re-gions. Therefore, the expansion and optimization of sources of filling local budgets is an extremely important task, the solution of which will help increase the level of financial independence of local governments and ensure high-quality performance of the tasks and functions assigned to them. The issue of improving the process of generating local budget revenues and finding reserves to increase them is extremely important in the context of budget decentralization and significant expansion of powers which are vested to local authorities. The article analyzes the current state of formation and use of local budgets in the context of decentralization of financial resources and local government reform, as well as identifies the main ways to increase the financial base of local governments to ensure effective implementation of their functions.