Abstract
The article addresses the fundamental issues of implementation of responsibilities of the state vis-a-vis the system of local self-government. In particular, it argues that the responsibilities of the state in matters of local self-government are mainly related to ensuring the harmonious development of the communities. The article also reveals the impact of factors determining the effectiveness of this state policy on the actual results of the development of the communities. The article provides an interpretation of the notion of “harmonious development” and, in light of that, analyzes the specific features of such tools for implementation of responsibilities of the state as financial equalization, subsidies and subventions. It also examines the mechanisms for their application as defined in the current legislation as well as reveals the factors affecting the effectiveness of those mechanisms. On this basis, the article presents some conceptual approaches for the improvement of the existing legislative regulations of the mentioned tools and mechanisms.
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