Development and Incipience Decentralization of Authority in Ukraine and Formation of Its Impact on Local Budgets’ Financial Capacity

Abstract

The article states that the main direction among the complex of reforms initiated in Ukraine is the decentralization of power, which will allow to build a more effective system of public administration, to fundamentally update the content of activities of both executive and local self-government authorities. The role of administrative–territorial reform in the process of strengthening decentralization in Ukraine is determined. It is grounded that the administrative–territorial reform is intended to ensure the formation of financially capable communities that can not only meet the minimum social needs of the population, but also provide integrated and systematic development of territories, increase the level of financial autonomy of local authorities within the framework of ensuring their own powers and promote the balance of national interests with interests of local authorities. The analysis of methods for assessing the degree of financial decentralization, based on the analysis of the autonomy of regional and local authorities in the framework of tax and expenditure policy, was conducted. The practical aspects of the reform of the territorial organization of power and local self-government in Ukraine are considered. The analysis of the implementation of the stages of decentralization reform in Ukraine is carried out. The evaluation of the results obtained on the basis of the execution of budgets of all levels is evaluated.