ASPECTS OF FISCAL SPACE ADAPTATION IN LOCAL SELF-GOVERNMENT

Abstract

Introduction. In the process of decentralization, the system of local self-government should gra-dually change, the purpose of which is to build an effective system of territorial power organi-zation in Ukraine. In this regard, it is advisable to reform the system of local self-government in the direction of financial decentralization, which is due to the need for redistribution of powers, responsibilities and financial support between government agencies and self-government. The purpose of the study is to reveal the main aspects of the fiscal space adaptation of local self-government in today's conditions. Results. It is determined that the fiscal space of local self-government requires constant adaptation, gradual streamlining and systematization of the existing relationships between the individual components, factors of external and internal influence. Adaptation should be carried out by local authorities in accordance with the list of powers delegated by the state. The main emphasis should be on the revenue and expenditure areas of the budgeting process. The results of budgeting determine the existing needs and available opportunities for expanding the local fiscal space. It is noted that the basis for the accumulation of local budget revenues are tax revenues, so it is advisable to increase the level of diversification of sources of budget revenues. It is outlined that local budgets significantly depend on the decisions of the central government regarding the principles and criteria for the distribution of tax revenues; opportunities and directions of revenue accumulation from the collection of existing taxes, in accordance with the tax base. Conclusions. The fiscal space of local self-government, which was formed in Ukraine in the context of financial decentralization, does not sufficiently stimulate the intensification of representative bodies of territorial communities to increase the financial capacity of local budgets and improve the standards of living in the region. Tax revenues from individual territorial entities to the state and local budgets are characterized by significant disparities and need to be adjusted according to the identified goals and priorities of the state. Key words: space, financial decentralization, territorial community, tax revenues.