Abstract

One of the main directions of development of Ukraine is the decentralization of state power through the development of the institution of local self-government. In particular, the effectiveness of the functioning of local authorities is directly dependent on the potential of the region and the possibility of the qualitative provision of public goods to the local population, which is closely linked to the effective management of financial resources at the local level. The welfare of the state depends on the state of local budgets. It is extremely important to allow local governments to function autonomously, act as a center of development, create public goods, innovations and scientific and technological progress. Consequently, financial security and autonomy of local communities are inherent characteristics of the ability of local government as such. Now in Ukraine, local budgets do not correspond to the powers vested in them. There is no adequate financial base for the maintenance of municipal institutions transferred to local governments in whose territory these institutions are located, and whose population they serve. For example, schools, medical stations, as a rule, serve the residents of one city, and their content is within the competence of local governments. That is, the state transfers powers to local authorities without financial support for the fulfillment of these obligations. The analysis of subsidies to local budgets in general indicates how much local governments in Ukraine are financially capable of fully resolving issues of local significance. In other words, the state of local budgets indicates how much the state in its policy seeks to achieve the goals defined by the Constitution. Indeed, in the Constitution, local self-government is defined as the right and the real possibility of local communities independently in their own interests and under their responsibility to resolve issues of local significance. It is the question of whether this right is being exercised and whether a real opportunity for territorial communities is provided for this, indicates the state of local budgets. The availability of decent financial support is an essential element for the independence and independence of the united territorial communities. As far as local government is developed in financial and economic terms, so will be a strong state. Without strengthening the financial basis of local self-government, increasing the financial independence of local communities, it is impossible to achieve the effectiveness of local self-government and the quality public services provided by municipal services.

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