ACTUAL ISSUES OF FORMING THE REVENUE PART OF LOCAL BUDGETS IN THE CONTEXT OF ADMINISTRATIVE-TERRITORIAL REFORM IN

Abstract

Introduction. The reform of local self-government and territorial organization of power has been implemented in Ukraine since 2015. Decentralization is one of the most important transformations in the European integration context and aims to form real local self-government, starting from the basic level – united communities. The formed united territorial communities have to be able to provide its competitions and public services at the appropriate level. Socioeconomic stability of the basic level of administrative-territorial structure heavily depends on the correspondence and balance between the received financial resources and competitions. At the same time, the state and trends of local budgets are influenced by legislation framework. Currently, the revenue part of local government budgets is too dependent on government programs and subventions, which makes it difficult for communities to independently stimulate local economic development. Also, the expected introduction of a market for agricultural land may lead to significant changes in the structure of tax revenues of the united communities of individual regions. The purpose. Іnvestigate trends in the formation of the revenue part of local budgets and find ways to increase the financial capacity of local governments in the context of reform of local government and territorial organization of power. Results. The state, problems, sources of revenues and further prospects of local budgets in Ukraine are studied. The main sources of revenue of local budgets, their economic nature, features of administration and possible threats in case of launch of the land market are identified. Topical issues of formation and possible ways and sources of further filling of the revenue part of local budgets are identified.