ІНСТИТУЦІЙНІ ЗМІНИ ОРГАНІВ МІСЦЕВОГО САМОВРЯДУВАННЯ У ПРОЦЕСІ ФІНАНСОВОЇ ДЕЦЕНТРАЛІЗАЦІЇ В УКРАЇНІ

Abstract

The article considers the institutional changes of local governments in the process of financial decentralization. The content of decentralization is considered in three aspects: deconcentration, delegation and devolution. The main types of decentralization are presented and its main principles are analyzed. The main advantages and positive consequences of the administrative-territorial reform of Ukraine are considered. The basic principles of financial decentralization in Ukraine are given. Recommendations for improving the institutional levers for the effective functioning of the new institutions created as a result of the decentralization reform - united territorial communities. The main meaning of financial decentralization is the transfer of financial resources and power to local governments from central government through compliance with the principle of subsidiarity. The consequence of reforming the administrative-territorial structure of Ukraine was not only the creation of united territorial communities, but in general the reform of the financial system of the country, which necessitated strengthening and expanding the financial resources of local governments. Strengthening the material and technical base and financial capacity in the current conditions of territorial development of Ukraine has significantly strengthened the role of local budgets. Sufficient local budget revenues strengthen the financial independence of local governments, allow them to intensify economic activities and infrastructure in the respective territorial communities, as well as identify and use alternative sources of local budget revenues, which significantly increases the financial capacity of administrative units. The goal of financial decentralization is not only to improve the quality and efficiency of public services at the local level, but also to ensure economic growth, sustainable economic development of territories and improve the financial stability of local budgets.