Budgetary Relations Research Articles

АКТУАЛЬНЫЕ ПРОБЛЕМЫ ФИНАНСОВОГО КОНТРОЛЯ

The author devoted his research to the study of financial control mechanisms, identified positive and negative trends in this area. He emphasized that the modern financial control system requires a deep rethink-ing due to its imperfections. The author also emphasized that the statistics of offenses and crimes in the budgetary sphere testifies to the systematic nature of these problems in the budgetary sphere. The author also highlights those internal and external factors that can have both a positive and a negative impact on the financial control system as a whole. The author attributed to the key problems in the field of financial control the lack of a unified approach to the implementation of control measures, as well as the need to tighten pun-ishment for irrational and inappropriate use of budget funds, since the effectiveness of financial control also depends on the level of financial discipline of participants in budgetary relations.

Modern financial and legal relations trends and economy digitalization

The article considers the trends in the development of financial and legal relations, which are caused by changes taking place in economic and social relations through the introduction of digital technologies. In conducting the study the authors analyzed the totality of currency, banking relationships, insurance relationships, budgetary legal relations and financial market relations. As a result of the study, the authors concluded that it is necessary to improve the mechanism of legal regulation of the use of such financial instruments as blockchain, cryptocurrency, etc., as well as the supervisory functions of the Bank of Russia credit bureaus in order to increase confidence in financial market participants.The authors also justify the need to introduce specific taxes (taxation on payments made for the purchase of goods and services over the Internet, or a tax on turnover from commercial activities on the world wide web) in order to prevent digital businesses from tax avoidance. An implication of the analyses is identifying tools that ensure a transparency of the budget system. Control approaches themselves have also been transformed. Thus, risk-based approaches have been used, as well as ratings of control objects by the level of reliability. It also requires further analysis of the regulatory tools that can be applied by public authorities, changes in the object and tax base, the procedure for collecting taxes, and possible tax benefits. The results can be used in further research to develop an effective legal mechanism for regulating financial and legal relations in modern economic condition.

PUBLIC FINANCES' TRANSPARENCY AS A FACTOR OF ENSURING THE STATE'S FINANCIAL SECURITY

Attention to the topic of transparency of public finances today is growing worldwide. It is generally accepted that transparency in the field of public finances is one of the key tools for ensuring good governance, which in turn contributes to improving the financial security of the state. In general, transparency is understood as full, reliable, timely and systematic disclosure of all important information and implies free access to it, as well as comprehensibility for all citizens of the state. This article examines the impact of transparency of financial relations at the public level in today's digital environment on the components of financial security. As a result, it was established that at the state level the components of financial security are banking security, security of the non-banking financial sector, debt security, budget security, currency security, monetary security. Research on various sources of information has determined that central banks must be properly accountable to legislators and society, as transparency is a key element of this social responsibility. In turn, the impact of transparency on the financial security of the non-banking financial sector is manifested in an increase in confidence in non-banking market institutions. For its part, maintaining the regulatory level of public debt, as well as its most efficient spending is the main task of the authorities, so based on this, it is necessary to constantly monitor public debt, which can be provided only in conditions of transparency. A significant role in shaping the financial security of the state belongs to the provision of budget security indicators, which are primarily influenced by the principles of transparency of budgetary relations. For this purpose, information portals were created: “Unified web portal for the use of public funds” and “State web portal of the budget for citizens”. The next component of financial security is currency security, ensuring publicity and transparency of which is part of the functions of the NBU. In the current context of globalization and informatization of society in order to reduce undesirable synergies in the monetary system, one of the ways to improve the monetary policy of the National Bank should be to increase the transparency of foreign exchange transactions, which increases financial security. Thus, ensuring the transparency of public finances should be the main task of the authorities, which will increase the financial security of the state and provide access to open budget data for the public, as well as enable their active participation in the budget process.

КОНЦЕПТУАЛЬНІ ЗАСАДИ ФОРМУВАННЯ І ФУНКЦІОНУВАННЯ БЮДЖЕТНОГО МЕХАНІЗМУ РОЗВИТКУ МУНІЦИПАЛЬНОЇ ОСВІТИ

The article a scientific approach to determining the conceptual foundations of the formation and functioning of the budgetary mechanism for the development of municipal education. The author reveals the use of local budgets, which is characterized by instability of revenue sources. These problems are exacerbated by the introduction of local government reform and financial decentralization, which are due to the expansion of the rights of local governments and the improvement of their responsibilities for their own activities. The article investigates theoretical approaches to defining the essence of the concepts of "budget", "local budget", "budgetary mechanism". The role of local budgets in the current conditions of development of the budget system of Ukraine is clarified. It is established that local budgets occupy one of the central places in the economic and financial system of the state, and also play an important social role; local budgets are studied from the standpoint of their multifaceted and systematic nature. The author summarizes the interpretation of the budget mechanism, which are found in the scientific literature from different positions: as an objective economic category, as part of the financial mechanism, from a practical point of view, as the role of the budget mechanism in socio-economic development. Interpreting the budgetary mechanism, attention is focused on its impact on the development of territorial associations of the state and municipal education, in particular. It is proposed to understand the budgetary mechanism of municipal education as a set of specific forms, levers, instruments of budgetary relations, specific methods of mobilization and use of funds under the influence of operational, retrospective, regulatory subsystems ,that is the reality of the implementation of budgetary regional policy with the display of specific information, the assessment of budgetary structures to eliminate problems and the development of municipal education. .Effective model of budgetary mechanism of social and cultural development of municipal education is characterized. In the process of presenting the material, the concept of sustainable regional educational development is outlined, which should be based on the model of sustainable development of municipalities in the context of «economy-education-society».

Budgetary control in Ukraine: current state and changes

Today it is necessary to improve the legislation of Ukraine in the sphere of budgetary control, namely: it is expedient by joint implementation of the Ministry of Finance of Ukraine, the State Tax Service and the Accounting Chamber of Ukraine common standards of control over the use of budgetary funds and objects of state (municipal) property. An important requirement to build a modern system of state financial control at all levels of management is to exercise control on the basis of ensuring clear interaction and coordination of efforts of all participants of financial and budgetary relations to solve the problems of budgetary control of Ukraine. The current system of budgetary control of Ukraine must be designed in such a way that it can be quickly and effectively adjusted to meet new challenges and challenges.

�������� ������������ ����IJ� ��������-��������� �������

The article deals with the principles of application of budgetary coercive measures in the context of improving budgetary legislation in accordance with the requirements of the European Union. Budgetary and legal coercion, as a kind of state coercion, is a type of financial and legal coercion. It has all the features of the latter, developing in relation to specific budgetary relations; it acts not as an independent category of legal responsibility, but as a kind of financial and legal coercion. Budgetary and legal coercion is the external influence of the state, represented by authorized bodies, on the behavior of individual participants in the budgetary process concerning the application of measures of budgetary coercion, which impose additional encumbrances of property or organizational nature on the unfulfilled obligations provided by budgetary law, in order to ensure compliance with law and order in the budget sphere. The significance of the principles of law for the formation of normative and legal regulation of budgetary and legal coercion is considered. The principles of financial law and their influence on the formation of the principles of budgetary law are described. The general legal principles of application of measures of budgetary and legal coercion are analyzed; their role in establishment of budgetary and legal responsibility is defined. Based on the current legal framework, special principles for the application of budgetary coercive measures are determined, including those that have not been formally fixed in the Budget Code of Ukraine, but are fragmented in the normative and legal acts of budgetary legislation. With regard to budgetary offenses concerning measures of budgetary coercion, the principles of legality, priority of public interests, and division of functions in the field of financial activity on the basis of separation of powers play a special role. The main branch principle of budgetary law in the context of the implementation of measures of budgetary coercion is the principle of addressable and target nature of budgetary funds.

�������� ���������� �����: ������� �������, ������� �� �������

The article conducts a theoretical and legal study of the concept and system of principles of budget law, scientific approaches to understanding and implementing the principles of the budget system of Ukraine. The analysis of approaches to the definition of principles of law, financial law is carried out, definitions of principles of budgetary law which are contained in scientific national and foreign legal literature are considered, features of influence on the formation of principles of budgetary law and normative-legal fixing are specified. The difference between the principles of budget law and the principles of budget activity is indicated. The place of budget law as a sub-branch of financial law is defined. Budget law is an element of the financial law system. The system of principles in force in budget law is similar to the system of principles of financial law with the difference that a group of special principles is added to them. These principles can be called their own, as they apply only to budgetary relations, have a unique legal scope, and are externally normatively expressed in the budget legislation in the form of principles of the budget system of Ukraine. The system of principles of budget law includes: general principles of law inherent in the entire legal system; intersectoral principles inherent in financial law, all elements of this branch of law; principles inherent only in financial law and apply to all elements of this branch of law; principles inherent only in budget law, own principles that apply to all elements of this subsector and are normatively expressed in budget legislation as the principles of the budget system of Ukraine. The definition of �principles of budgetary law� is given, it is proved that as a mechanism of regulation of budgetary activity the principles are manifested in law-making and law-enforcement documents, normative-legal acts.

Бюджетне право як провідна підгалузь фінансового права

The article is dedicated to characteristics of Budget Law as the main sub-branch of Financial Law. A lot of general theoretical researches are devoted to the problem of Budget Law as the sphere of maintaining budgetary activity. But this question is in the center of scientists and practiciants’ attention, especially, when it concerns specific branch researches. In the science of Financial Law this problem is complicated by the absence of strict understanding of Financial Law System, its division into general and special parts, the structures of both of these parts. Budget Law, according to traditional domestic scholars’ views on the branches of law structure in general and Financial Law in particular, is a component of special part of Financial Law and its main sub-branch. The attention is concentrated on the problem of determination the place of Budget Law as a complex of legal norms, which regulate budgetary relations in legal systems of different states: complex branch of law; sub-branch of Financial Law; totality of two institutes: budgetary arrangement and budgetary process. Recently, the scholars began to pay their attention to the System of Financial Law, more often. So that, the scientists of Yaroslav Mudryi National Law University ask question, concerning the absence of general part of Financial Law, as a complex of financial and legal norms, which reveal in special part of Financial Law Institutes. Traditionally Budget Law is considered to be a complex of two institutes: budgetary arrangement and budgetary process. Such division is determined by material and procedural rules of Budget Law. Budgetary activity of the state and its bodies is the sphere of budgetary relations rising and development. Supporting division of Budget Law into two parts: material and procedural, it can be talked about the existence of budgetary-material and budgetary-procedural activity. In any case, Budget Law is the main sub-branch of Financial Law, which exists and is realized within budgetary activity. Key words: Financial Law, Budget Law, sub-branch, budgetary system, budgetary process, budgetary activity.

Особенности правового регулирования финансового обеспечения здравоохранения на территории города Байконур

One of the main sources of health care financing in Russia is the means of compulsory medical insurance. Accumulation of financial resources of obligatory medical insurance occurs through functioning of Federal Fund of obligatory medical insurance, and direct management of them in the territory of subjects of the Russian Federation is carried out by territorial funds of obligatory medical insurance. At present, there are 86 territorial funds of compulsory medical insurance, but only 85 operate on the territory of our country. There is also a fund outside Russia - a territorial Fund of compulsory medical insurance of the city of Baikonur. The city of Baikonur is an administrative-territorial unit of the Republic of Kazakhstan, which is under lease and is endowed for this period with the status that corresponds to the city of federal importance of the Russian Federation. The article discusses the gaps in the legal regulation of budgetary relations between the Russian Federation and Baikonur city, especially the recognition of international treaties as sources of financial law and financial legal regulation of the compulsory health insurance, as well as issues of ensuring the rights of citizens of the Russian Federation in the process of legal regulation of financial providing of free medical care on the territory of Baikonur.

Transformation and architecture features of budget law

In this article, the author identifies key areas of development of budget law. It is noted that under the influence of various factors and phenomena there is a so-called "growth" of the subject of regulation of budget law, covering new institutions, categories, new subjects of budget law; liberalization of methods for regulating budgetary relations is observed. The collision of fiscal regulation is ascertained, due, in the author’s opinion, to the turbulent dynamics of the legal design of the emerging multitude of new budgetary relations, and which subsequently plays the role of an incentive in the search for new constructive scientific solutions to eliminate them.

Some issues of consideration by arbitration courts of cases arising from financial legal relations

The article examines the general problems associated with the consideration by arbitration courts of cases in the field of financial law. Using the example of the Moscow Region Arbitration Court, the author identifies the main categories of such disputes, and also dwells on some of the problems and trends that are relevant to them. So, attention is paid to cases arising from tax and budgetary legal relations, the element of “financial publicity” in private-law disputes related to the involvement of state authorities authorized in the relevant field to participate in their consideration is analyzed. In addition, the work outlines the key areas of work in the study of judicial practice in relation to cases considered by arbitration courts arising from financial legal relations, which, along with a thorough study of this branch of law, allows for the effective protection of the rights and legitimate interests of participants in economic disputes in arbitration proceedings.

Modern models of financial and legal regulation of public relations: a regional aspect

This article is devoted to the study of modern models of financial and legal regulation of public relations. In particular, in the work, the author raises a number of problems related to the legal regulation of budgetary relations in the regions, substantiates the need to update the content of the principle of balanced budgeting, analyzes the instruments for implementing state financial policy, raises the question of the need to modernize the budgetary process in the regions.

Key vectors for improving the activity of regional bodies of the Federal Treasury given the integrated management of public finance

Subject. The article focuses on a set of financial and budgetary relations existing in regional bodies of the federal treasury, inter alia, in public finance management. Objectives. We search for new tools and available methods to enhance the performance and efficiency of the Federal Treasury bodies, illustrating the operation of the Federal Treasury for the Nizhny Novgorod Oblast. Methods. The study is based in general methods (the analysis and synthesis, abstraction and generalization), specific research (special) methods (economic analysis, statistical-economic method). Results. We devised the methodological framework to pinpoint vectors to follow ensuring the development of treasury system. As part of the study, we discovered two main factors to improve the activity of the Department of the Federal Treasury for the Nizhny Novgorod Oblast, such as Factor 1 – The Automated Finance Management System, Factor 2 – Financial Forecast. Considering the impact of the factors, we can determine what can be done to strategically manage public and municipal finance. Based on the studies, we can recommend steps to enhance the performance of the treasury system. Conclusions and Relevance. To implement Factor 1, we suggest setting the single identification and authentication system, which will help outline the public and municipal finance management strategy during turbulent times. To implement Factor 2, we propose methodological principles for forecasting of public finance, which will be based on the time series analysis so as to evaluate patters and dependencies and subsequently make up a model for further trend forecast. The findings will be useful for executives of the Federal Treasury offices and professionals delegated to manage public finance. Furthermore, the findings can underlie further research on economics and finance.

Problems of organizing a public audit of the budget sphere

Relevance. The article discusses the problem of state auditing in the regions of the Russian Federation. Studies of data on control activities of the Astrakhan region's RCD show a high level of risk to the economic security of the region. The problems that arise from the actual implementation of control measures in the region are identified. The analysis showed that the state audit in the regions of the Russian Federation is usually reduced to the activities of the control and counting bodies of the federal entities. The article makes recommendations on the need to include in the system of state audit in addition to the control and accounting bodies, internal audit bodies in the field of budgetary relations. The aim of the study is to look at the problems of state audit and financial control in the Astrakhan region. The objectives of the study are to identify the problems of state audit and financial control in the Astrakhan region, as well as to develop recommendations to eliminate the identified problems and improve the economic security of the region. The results of the study. The analysis of the annual reporting in the Astrakhan region revealed the dynamics of financial irregularities in the financial and budgetary sphere for the period 2015-2018. The largest percentage of the Total Financial Violations of the Department is accounted for by «Other financial irregularities» based on accounting irregularities, such as: distortion of accounting, violation of the order of its conduct; the provision of knowingly unreliable budget reporting or other information; violations of the accounting of budgetary obligations, etc. Thus, studies of data on control activities of the Astrakhan region's RCD showed a high level of risk to the economic security of the region. The reason for which is a weak accounting system, violations in it.

Academician Sitaryan. Create the future for today

On the occasion of the 300th anniversary of the Russian Academy of Sciences, the Free Economic Society — VEO of Russia, is preparing a series of articles devoted to members of the academy who actively collaborated with VEO. Academician Sitaryan S.A. entered the economic history of Russia both as a prominent theoretical scientist, and as a talented organizer of economic reform processes, and as an active participant in the life of VEO. The article analyzes the scientific views of Academician S. Sitaryan on the problems of reforming the Soviet economy, starting with the «kosygin reform» and up to the reform of the late 80s of the twentieth century. The role of academician S. Sitaryan is revealed. in approving value categories in the practice of managing the national economy. The contribution of S. Sitaryan to the theory of analysis of macro- and microeconomic processes is shown; organization and assessment of the effectiveness of foreign economic relations; building rational and optimal budgetary relations between the center and the regions.

НАСЛІДКИ РЕФОРМУВАННЯ БЮДЖЕТНОЇ СИСТЕМИ УКРАЇНИ

The budget process in Ukraine during the years of independence is in a state of reformation due to the need to improve the quality of life of a large part of the country's population, raise social standards, provide the preconditions for economic growth. Thus, the process of finding optimal budgetary mechanisms that will ensure the financial sustainability, efficiency and effectiveness of budgets of all levels in Ukraine continues and is relevant in the current economic, social and political conditions of society. During the research, the stages of reforming the budget system of Ukraine were periodised in the article: stage 1 – the beginning of the formation of the budget system of Ukraine; Stage 2 – laying the foundations of Ukraine's own budget system; Stage 3 – development of Ukraine's own budget system; Stage 4 – elimination of deficiencies in the budget system of Ukraine; Stage 5 – the newest reform of the budgetary system of Ukraine based on the European integration course. The main directions of the modern reform of the public finances are outlined, in particular the reforms of financial decentralization: change of approaches to management of budgetary funds; development of the program-target method in the budget process; improving fiscal risk management; verification of government payments; development of state internal financial control; accounting and auditing reform; improving intergovernmental budgetary relations; increasing budget transparency; monetization of subsidies. The analysis of public finance reform in Ukraine was carried out with the help of economic indicators characterizing the level of development of the budgetary system. It is revealed that local budget revenues are mainly generated by tax revenues and intergovernmental budget transfers. The main consequences of the reform of public finances in Ukraine including: strengthening of the financial base of local budgets; intensification of work on the implementation of medium-term budgetary planning; raising the publicity of the budget process. The directions of further reform of the budgetary system of Ukraine are substantiated, in particular: to continue work on increasing the level of interest of local authorities in increasing their own revenues; strengthen work towards strengthening the financial autonomy of local budgets.

The impact of tax and budget policy on the level of economic growth

Relevance of the research topic. In the current conditions of development of social relations, the issues of increasing the validity of fiscal policy, using its regulatory potential for the proper fulfillment of tasks and functions entrusted to them by state bodies and local self-government bodies are actualized. An important task of fiscal policy is to improve its instruments aimed at accelerating economic growth. At the same time, the peculiarities of the formation and implementation of fiscal policy in both the advanced and transformational economies are conditioned by a number of factors, the most important of which are: the level of economic growth and institutional capacity of the country. Formulation of the problem. Based on the transformation processes in the domestic system of public finances, the major tasks are: the reconciliation of fiscal policy with the strategic task of socio-economic development of the country, improving the architecture of budget revenues and expenditures; ensuring the concentration of limited budgetary resources in those sectors of the economy that will facilitate the acceleration of economic growth, which requires further scientific studies of theoretical and applied aspects of fiscal policy formulation and implementation, assessment of its impact on the level of economic growth. At the same time, the choice of fiscal policy instruments should be made taking into account the cyclical and dynamic economic processes. Analysis of recent research and publications. The problems of forming and implementing fiscal policy are quite common in scientific research. These are the works of well-known domestic and foreign scientists: J. Buchanan, W. Mitchell, J. M. Keynes, T. Bogolib, I. Zapatrina, L. Lisyak, I. Chugunov and others. Highlighting unexplored parts of a common problem. The aforementioned issues are updated due to the increasing globalization processes, the unfavorable external and internal economic environment, which requires a number of specific tasks related to the development of fiscal policy. Goal setting, research goals. The objectives of the study are: to reveal the nature and role of fiscal policy in ensuring economic growth, to substantiate the features of fiscal policy in the current conditions of development of the public finance system; to analyze and evaluate the consolidated budget revenues and expenditures; identify the main factors that influence the peculiarities of fiscal policy implementation; to open up provisions for improving the efficiency of the fiscal policy regulatory mechanism. The purpose of the study is to substantiate the priorities of fiscal policy of economic growth in the context of institutional transformation. Research method or methodology. The set of methods of scientific research is applied in the article: systematic approach, statistical analysis, structuring, analysis, synthesis, etc. Basic material presentation (results of work). The essence and role of fiscal policy in ensuring the economic growth of the country are determined. The consolidated budget revenues and expenditures have been analyzed and estimated. The priorities of fiscal policy of economic growth in the context of institutional transformations are substantiated. Area of application of results. The results of this study can be applied in the process of forming and implementing fiscal policy of Ukraine, reforming the public finance system. Conclusions according to article. Fiscal policy is a dynamic system of goals, directions and tasks of public authorities and local self-government aimed at ensuring the stability, stability and balance of the budget system, further improving the institutional environment of budgetary relations, taking into account the cyclical and dynamic economic processes. Developing an effective fiscal policy involves developing a structural and functional model of fiscal policy that is based on the integration of institutional components of the budgetary space. Assessment of the impact of fiscal policy on economic growth should include a detailed analysis of the architecture of budgetary indicators, as well as an assessment of possible risks. In modern conditions of development of social relations the important tasks of fiscal policy are: optimization of the level of tax burden; improvement of the architectonics of budget expenditures (a significant share of budget expenditures goes to consumption); improving the architecture of budget revenues, in particular by changing the relationship between indirect and direct taxes; raising the level of the regulatory function of fiscal policy, in particular by supporting the development of major sectors of the economy. The article identifies strategic priorities of fiscal policy of economic growth in the context of institutional transformations.

An integrated approach to assessing the level of fiscal policy decentralization

The main purpose of this study is to introduce an integrated approach to the methodology of assessing the level of fiscal policy decentralization. It is proposed to evaluate the fiscal policy decentralization of the state according to three functional components: decentralization of the process of local budget revenues formation (includes five indicators); decentralization of local budget structure (includes six indicators); decentralization of intergovernmental budgetary relations (includes five indicators). The expediency of forming an integral indicator of the level of fiscal policy decentralization as the geometric mean of three sub-indexes formed by its main functional components is substantiated. It has been proved that the level of fiscal decentralization in Ukraine decreased at the end of 2017, compared to 2004, but was medium with acceptable risks of fiscal policy modernization. Instead, in 2014, the lowest numerical value of the decentralization level was recorded, which corresponded to the critical level of the integral indicator with significant obstacles to the modernization of fiscal policy. The results obtained confirm the feasibility of implementing the decentralization reform in Ukraine, which started in 2014, and demonstrate its effectiveness.

Причины, сфера проявления и особенности споров в бюджетной сфере

The article is devoted to identifying the features of conflicts in the public sector as a basis for disputes, including with the participation of courts. The concept of «public interests» is introduced, on the basis of which the characteristic of disputes in the budgetary sphere is given as a dispute between the parties, relations between which are based on the method of legal inequality. It is concluded that by virtue of the law, the ruling party gives instructions to the subordinate party to do something in relation to the budget, but not always the public interests of the parties to the legal relationship are equally protected by law, which is not sufficiently manifested in the practice of legal support of budgetary activities. Since the efforts of the legislator to regulate budgetary relations are mainly aimed at ensuring procedural activities, they almost do not affect the goal-setting mechanism, so the subordinate party has no opportunity to challenge the management decision that infringes the implementation of the public interests of the subordinate party. By virtue of the above, the courts do not participate in the consideration of issues that go beyond the procedure for spending budget funds and the application of appropriate sanctions. Therefore, frequent cases of arbitrariness of the powerful party in budgetary legal relations remain without proper judicial protection. To solve the problem, it is required to introduce the institution of goal-setting in the budget legislation, so that it will be possible to talk about the proper provision of public interests in the budget sphere.

Development trends of local taxes in the system of local budgets in Ukraine

Effective system of local self-government is a key to the successful development of a democratic state. It should be aimed at ensuring the effective performance of functions by the authorities, creating environment for obtaining quality services by citizens, and introducing and expanding the system of local taxes.Local taxes make the financial basis for the activities of local self-government bodies. However, nowadays, the lack of their volume and revenue instability are considered as a matter of national concern. Funding of state delegated powers, which is mainly due to transfer payments, is characterized by the delayed receipt of revenues and the lack of revenue in terms of targets, thereby creating problems with financing from local budgets.The article investigates the essentials of local taxation in the system of local budgets in Ukraine. It also summarizes methodological approaches to determining the nature of local taxes, clarifies their fiscal role in the local tax system and local budgets, and analyzes the existing practice of formation and implementation of local taxes in local budget revenues. Besides, prospective lines of improvement of the local taxation system are investigated and recommendations for its development are elaborated. Also, the subject to reform of the system of tax and budgetary relations was substantiated; changes in some administration mechanisms, the list expansion due to environmental fees and strengthened control over the unshadowing of small and medium businesses were offered.