ФІНАНСОВА ДЕЦЕНТРАЛІЗАЦІЯ ТА ІНСТРУМЕНТИ ПІДТРИМКИ РОЗВИТКУ ТЕРИТОРІАЛЬНИХ ГРОМАД

Abstract

The article is devoted to issues of financial decentralization and financial instruments for supporting the development of territorial communities. It is mentioned that the decentralization reform, which includes financial decentralization, is one of the most successful government reforms. It is indicated that the balance of budget revenues and expenditures refers to the achievement of tactical goals, and the harmonization of budget policy to external and internal conditions - to strategic goals. It is noted that local budgets, as an element of the budget system, are an important tool of macroeconomic regulation, and the formation and implementation of local budgets determines the degree of effectiveness of local self-government in the implementation of the functions and powers assigned to them. It was revealed that the reform of inter-governmental relations has shown its effectiveness, as territorial communities have the opportunity to use various tools to support local development to solve their urgent problems. Such instruments include funds from the State Fund for Regional Development, subventions for the implementation of measures for the socio-economic development of territories, funds from the state budget to local budgets for the implementation of infrastructure projects and the development of objects in the social and cultural sphere, funds from programs (projects) of international technical assistance and other programs in case of submission of projects in accordance with the procedure established by law etc. It was investigated that the main achievement of implementing the reforms was the expansion of the revenue potential of local budgets due to the change in the proportion of the inclusion of national and local taxes and fees in the budgets of territorial communities. This ensured effective and balanced development of the respective territories and created opportunities for independent search for sources of strengthening the financial base. So, the consequence of the budget reform and financial decentralization was the changes in the structure of the budget system and the introduction of innovative financial instruments for local development to fulfill the tasks stipulated by the financial and budget policy of the state at the regional and local levels.