FINANCIAL POLICY AND ITS ROLE IN THE FORMATION OF LOCAL BUDGET REVENUES

Abstract

Local budget revenues are a significant component of the financial relations system, and an effective financial policy for their formation determines the ability to meet local government expenditure commitments to ensure the social and economic development of territories. Qualitative and timely planning of local budget revenues influences the validity of indicators of social and economic development of the country and its administrative-territorial units. The purpose of the article is to iden-tify the features of financial policy and its role in shaping the revenues of local budgets in Ukraine and determine the directions of improving the processes of forming the revenues of local budgets. The article deals with the theoretical approaches to the formation of incomes of local budgets, acquires a special relevance on the path of European integration of Ukraine, since without the financial independence of local budgets with its numerous components and account of the tax potential of each territory, the con-struction and development of an effective national economy is impossible. The economic and social development of any country in many respects depends on the development of its territories. This, in turn, requires a proper financial policy implemented through the formation of local budgets. Local budgets are becoming increasingly important in the implementation of social and economic regulation, which is a decisive factor for their further development. The presence of a number of problems in the area of local budget revenues creates the need to expand the financial basis of local self-government as an important component of the mechanism for increasing the welfare of the population and economic development of communities in order to ensure a fair and impartial distribution of budgetary resources and compliance with the principles of balance and independence of budgets defined by the legislation.