Non-tax Revenue Research Articles

Tax competition in the administration of budget revenues as a factor in stimulating economic rivalry between business entities

The article examines the Institute of tax competition in the field of administration of budget revenues of the budget system of the Russian Federation. The issues of the essence, types and main goals of tax competition in the field of administration of tax and non-tax revenues at the regional level are considered. According to the author, the main goal of maintaining tax competition in the field of budget revenue administration is to improve the quality of financial management in the subjects of the Russian Federation, including in the provision of public services using digital technologies. An additional goal of tax competition should be to stimulate economic competition among economic entities and develop competition in General.

Fiscal policy and environment: a long-run multivariate empirical analysis of ecological footprint in Pakistan.

The ecological footprint attempts to quantify human impact on nature and its resources necessary to satisfy human needs. This research study explores the long-run implications of fiscal policy on the ecological footprint in Pakistan empirically, keeping different socio-economic factors into consideration. Per annum, time series data have been collected between 1976 and 2018, and the ARDL model is applied to investigate this long-run and short-run association. The conclusion of ARDL model shows that a 1% increase in public development expenditures, total population, GDP, and energy consumption increase 0.19, 2.17, 1.16, and 2.17% ecological footprint, respectively, in Pakistan between 1976 and 2018 vice versa. However, it is also derived that a 1% increase in public tax and non-tax revenue and current public expenditures (in health, education, and other social sectors) shrink 0.36 and 0.013% ecological footprint in the long run in Pakistan. For policy implications, these results focus on practical fiscal policy significance to achieve environmental targets in Pakistan, suggesting an increase in public current expenditures in public and social sectors and increasing public revenue by expanding the tax base, which will ultimately reduce ecological footprint in the long run in Pakistan.

Analysis of the Accuracy Level of Revenue and the Distribution Mechanism of Tax Revenue Sharing and Non-Tax Revenue Sharing for the Jambi Province Government in 2015-2019

This study aims to analyze the accuracy of receipts and mechanisms for disbursement of Tax Revenue Sharing funds and Non-Tax Revenue Sharing of the Jambi provincial government in the fiscal year 2015 - 2019. Research is quantitative by using secondary data from the Jambi Provincial Government Budget Realization report for the Fiscal Year 2015 - 2019. Based on the results of the analysis can be concluded that the accuracy of receipts using the formula of efficiency calculation between the budget/target with the realization of balance funds dagi tax revenue sharing and Non-Tax Revenue Sharing in the five years in Jambi Province is inaccurate so as to cause the realization far exceeds or less than the budgeted revenue, and the distribution mechanism is also not on time and often late for reasons of miscalculation so that it must be recalculated, this will result in delays and even unenforceable project activities for regional development.

Аналіз податкових надходжень як складової доходів Державного бюджету України

Abstract. Introduction. The state budget is its monetary fund. Due to budget revenues, public authorities and local governments provide funding for their functions. The state uses mostly the tax method to accumulate budget funds. At the same time, the budget of our country has a chronic deficit and a significant level of public debt, which is involved to cover it, and the fiscal potential of our tax system is not fully used due to the high share of the shadow economy. Purpose. Analysis of the dynamics and structure of tax revenues in terms of direct and indirect taxes, identification of current problems in the field of taxation and possible measures for their solution. Results. As a result of the analysis of the structure of state budget revenues, it has been found that tax revenues form on average 80% of their total amount. The share of non-tax revenues is from 16.21 to 19.79%. The share of revenues from capital transactions ranges from 0.01% to 0.07%, and official transfers - from 0.95% to 1.34% over the past 5 years. Revenues to trust funds (the Fund for Social Protection of the Disabled and the Fund for Defense and Security of the State) are less than 1%. However, in 2017 their share increased to 3.76%. This was possible due to the significant inflow of confiscated funds received from the sale of property confiscated for committing a corruption crime, which went to the target defense fund. It has been determined that the state mostly uses the tax method in the process of generating budget revenues. The authors also analyzed the structure of tax revenues. It has been found that the dynamics of growth of their nominal volume is positive. It has been estimated that the growth rate compared to the previous year in 2017 was 24.3%, in 2018 - 32.9%, in 2019 - 15.0% and in 2020 - 4.1%. It has been noted that the low growth rate of tax revenues in 2020 was due to the negative effects of Covid-19. The shares of direct and indirect taxes have been compared in the research paper. It has been found that indirect taxes account put approximately two-thirds of the total amount. The largest share among tax revenues belongs to VAT and is about 50%. Direct taxation gives 1/3 of all tax revenues. The largest share in the group of direct taxes belongs to Income tax and Corporate tax. Results. As a result, it has been concluded that the Tax System of Ukraine is constantly undergoing reforms in search of the most optimal tax rates and the most effective organization of tax work. However, unfortunately, maximum efficiency has not yet been achieved yet because Ukraine still belongs to the group of countries with a high share of the “shadow economy”. The presence of a tax-free economy determines the non-receipt of monetary resources in the budget. These funds could become an additional source of filling the budget in case of changes in tax legislation, which would make it impossible to use tax avoidance schemes and improve the system of tax administration, which would prevent taxpayers from evading taxation.

Impact of Accelerating the Export of Nickel Prohibition on Non-Tax Revenue and National Economy

The discourse on the acceleration of the nickel export ban put forward by the Indonesian Government in August 2019 triggered various reactions and responses from market players in various countries. This can happen considering that Indonesia in recent years has contributed significantly to the international nickel trade. This study aims to look at the impact of implementing the policy on the receipt of PNBP royalties in nickel mining as well as the economy as broadly indicated in indicators of output, income, profit, and tax. This study uses a descriptive method with a simulation approach and a quantitative model of the BPS input-output table in 2010. The results of this study indicate that the country has the potential to lose nickel royalty PNBP of Rp 240-372 billion due to the absence of export of raw nickel ore. However, this loss can be replaced if the existing nickel smelter can operate optimally and the construction of additional smelter is realized according to plan. Even so, there is a risk of a decrease in the supply of nickel ore for smelters due to the preference of miners to export nickel ore at more attractive prices, which in turn can reduce economic value along the production chain. Therefore, the Government needs to establish communication with various business actors in order to improve the trade system to ensure supply and continue to encourage the realization of smelter construction.

Prioritising GDP or Tax Revenues: Indian Economists’ Dilemma

An efficient tax administration with fair tax rates is likely to generate substantial revenues, reducing the fiscal deficit, creating employments, and taming inflation. Indian tax administration has used the power to levitate tax as if it has been taken for granted by adopting the fixed money value target per geographical area instead of any data analytics. The effective tax rate and the average statutory tax rates were the highest in 2017–2018. Focus on generating non-tax revenues by multiple ways and structural reforms for boosting investments and household savings for accelerating GDP should be preferred over maximising tax revenues.

Regional Budgets in Q1 2021: Own Revenues Are Recovering

In Q1 2021, the revenues of the regions’ consolidated budgets went up compared to Q1 2020. The growth was ensured by the federal budget fiscal transfers and an increase in the own tax and non-tax revenues of regional and local budgets. According to the results of H1 2021, we can expect double-digit growth rates of own tax and non-tax revenues of the consolidated budgets of the subjects of the Russian Federation, and the main trend in the structure of public debt of the regions until the end of this year will be the replacement of commercial loans with budget ones.

Regions supporting the spatial Development of Russia: budgetary Aspect

The authors investigate the prospects for the spatial development of modern Russia highlighting the supporting regions considered in the budgetary aspect. The relevance of the study is due to the insufficient evidence for the effectiveness of the current policy of “equalization”, as well as the need for breakthrough growth of the Russian economy within the framework of national development goals. The present paper aims to identify one of the key elements of the supporting framework of the spatial organization of Russia in terms of the level of fiscal capacity. The research methodology is based on the use of complex, statistical and comparative analyses. The authors used official data of Rosstat on the population, tax and non-tax revenues, gratuitous receipts in 2010 and 2019 by regions of Russia. The authors highlight the key aspects of the spatial development of the Russian economy in the regional context: human capital development, economic development, the functioning of spatial structures of various types, fiscal capacity, environmental component, location of information and communication infrastructure, and geopolitical position. The influence of the fiscal capacity parameter on the sustainable socio-economic development of the region is justified. The fiscal capacity index of the constituent entities of Russia is analyzed at the end of 2010 and 2019, the main trends are identified. The study presents a cartographic visualization of the Russian regions by per capita fiscal capacity for tax and non-tax revenues of the consolidated budgets in 2019. The authors carried out a comparative analysis of the revenues of consolidated regional budgets on the macro-regional level, as a result of which the leading regions were identified and their budget parameters described.The present paper outlines one of the key elements of the supporting framework of Russian spatial organization from the point of view of fiscal capacity and identifies potential regions supporting spatial development in the context of macro-regions. The authors conclude that the supporting framework of the spatial organization of Russia, formed by the level of fiscal capacity, characterizes the financial potential of the territories, which can contribute to the development of interregional cooperation, including through the use of mechanisms for ensuring “horizontal” inter-budgetary transfers and budget loans. The prospect for further research on this topic consists in assessing and shaping other elements of the spatial development of Russia and identifying, by uniting them, supporting regions that can stimulate the development of not only the semi-periphery and periphery of their macro-regions but also of the entire country.

ANALISIS PERTUMBUHAN LABA PADA PERUSAHAAN SEKTOR PERTAMBANGAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

Indonesia is very rich in various resources, one of which is natural resources, one of which can be utilized in increasing non-tax state revenue. In addition, it can also be used as a support for economic activity both micro and macro, therefore company profits are used to support the company's operational activities in order to achieve the goals of the company. The purpose of this study was to determine the effect of Liquidity (Current Ratio), Leverage (Debt to Assets Ratio), Activities (Total Assets Turnover) on Profit Growth. The sampling technique used purposive sampling, namely sampling based on criteria, from these criteria there were 25 samples of mining companies, with a 2016–2018 research period, and the data analysis technique used was Multiple Linear Regression Analysis. The results of the observations can be concluded that the Current Ratio and Debt to Assets Ratio variables have significant results with a negative relationship direction to mining sector companies listed on the IDX in 2016–2018, besides that the Total Assets Turnover variable shows insignificant and negative results for mining sector companies listed on the IDX in 2016–2018. Indonesia sangat kaya akan berbagai sumber daya, salah satunya adalah sumber daya alam yang salah satunya dapat dimanfaatkan dalam meningkatkan penerimaan negara bukan pajak. Selain itu juga dapat digunakan sebagai penunjang kegiatan perekonomian baik mikro maupun makro, oleh karena itu laba perusahaan digunakan untuk menunjang kegiatan operasional perusahaan dalam rangka mencapai tujuan perusahaan. Tujuan dari penelitian ini adalah untuk mengetahui pengaruh Likuiditas (Current Ratio), Leverage (Debt to Assets Ratio), Aktivitas (Total Assets Turnover) terhadap Pertumbuhan Laba. Teknik pengambilan sampel menggunakan purposive sampling yaitu pengambilan sampel berdasarkan kriteria, dari kriteria tersebut terdapat 25 sampel perusahaan pertambangan, dengan periode penelitian 2016–2018, dan teknik analisis data yang digunakan adalah Analisis Regresi Linier Berganda. Hasil observasi dapat disimpulkan bahwa variabel Current Ratio dan Debt to Assets Ratio memiliki hasil yang signifikan dengan arah hubungan negatif terhadap perusahaan sektor pertambangan yang terdaftar di BEI tahun 2016–2018, selain itu variabel Total Assets Turnover menunjukkan hasil yang tidak signifikan dan negatif untuk perusahaan sektor pertambangan yang terdaftar di BEI pada tahun 2016–2018.

Regions' Budgets in 2020: Support by the Federation and Anti-Crisis Policy

In 2020, the budget policy of the Russian Federation regarding regions had a strongly pronounced counter-cyclical nature aimed at immediate support of the worst-off subjects. This measure allowed to offset declining tax and non-tax revenues and ensure implementation of regional anti-crisis measures intended to strengthen the public health system, support of the economy and the social sphere. Proper tax and non-tax regions’ revenues contracted by merely 1.8%, which is a good result against the 2009 and 2014–2015 crises and was mainly due to a rebound in tax receipts in H2 2020. An all-time high public regional debt amounting to Rb2.5 trillion at the end of 2020 does not pose a serious threat for their budget stability owing to a relatively low debt burden.

ANALYSIS OF THE PROCESS OF EXECUTION OF THE REVENUE PART OF THE MUNICIPAL BUDGET MR «DERBENT DISTRICT»

The article analyzes the total budget revenues of the Derbent district that have a non-constant dynamics. The tendencies to increase own tax and non-tax revenues and decrease gratuitous receipts are considered.

ENSURING INDEPENDENCE OF LOCAL BUDGETS UNDER CONDITIONS OF FINANCIAL DECENTRALIZATION

The article investigates the modern conditions and problems of forming local budget revenues in Ukraine. It is determined that local budgets must function as a well-oiled machine ensuring the equivalence of financial resources and planned allocations under conditions of financial decentralization. Approaches to ensuring budgetary independence are substantiated, outlining the tools necessary for local self-government bodies to ensure their capacity to develop. It is established that increased emphasis on independence of local budgets can become one the levers used for ensuring the local finance system complies with the principles of the European Charter of Local Self-Government and Law of Ukraine «On Local Self-Government in Ukraine». For this purpose, local self-governments are recommended to establish a sufficient and stable revenue base by introducing their own taxes and fees, expanding the non-tax revenue sources, changing the distribution of the revenues from the income tax and corporate tax between government budgets of different levels, creating community funds of economic development, balancing subsidies and subventions. It is argued that budgetary independence is an economic ideal that local self-government bodies should strive for. Its antipodes are rigid financial dependence of local budgets on state budgets, lack of own revenues, and ineffective distribution of funds between budgets of different levels. Additionally, the revenue sources specified in the legislature do not allow the authorities to sustain expenditures with the levies at local level. It is substantiated that territories with independent local budgets can create the state economic environment that corresponds to the principles of financial decentralization.

Dampak Jaminan Fidusia Kredit Kendaraan Bermotor yang Tidak Didaftarkan terhadap Penerimaan Negara Bukan Pajak

Motor vehicles ownership through finance companies can be realized after going through a series of procedures before a notary and fiduciary registration office. However, this series of procedures are not done by finance companies in providing motor vehicle financing to consumers. Increasing consumer financing to the public for motor vehicles ownership should also increase the number of non-tax state revenues from fiduciary guarantees. The study purpose is to know the legal consequences for fiduciary recipients who did not register their fiduciary guarantees and to know the impact of unregistered fiduciary guarantees on non-tax state revenue (PNBP). The formulation of the problem in the research question is how the legal consequences for fiduciary recipients who do not register their fiduciary guarantees and how the impact of unregistered fiduciary guarantees on non-tax state revenue (PNBP). The research method used is descriptive qualitative normative legal research using secondary data. The study results found that fiduciary finance companies/ recipients did not register their fiduciary guarantee, so they committed illegal acts by utilizing third parties to execute motorized vehicles that were not actually burdened with fiduciary guarantees. The executor’s right to fiduciary recipient is legally flawed because he does not hold a fiduciary guarantee certificate as a result of not registering a motorized vehicle as a fiduciary guarantee. The impact on state finances because they were not registering motor vehicles as fiduciary guarantees at the fiduciary registration office resulting in non-tax revenue (PNBP) being not optimal for the state.

Fiscal federalism in Russia: To be or not to be?

The ratio of the total volume of taxes coming from the territory to the budget system of the country and the expenses of the territorial budget illustrates the fundamental possibility or impossibility of forming intergovernmental relations in the spirit of fiscal federalism. The article tests its initial message: tax and non-tax revenues produced by the territory (given the administrative-territorial division of the country) should be, at minimum, sufficient to balance the budget and solve regional budget problems. It is shown that at present in 40% of Russian regions total revenues are enough to ensure budget surplus, the participation of these regions in solving national problems. In the remaining 60% of the regions, all revenues from the territory to the budget system are not able to balance budget revenues and expenses. The picture of intergovernmental relations was fundamentally changed, because in most regions that had deficit budgets in 2015, revenues in 2018 began to exceed expenses. The paper considers the opportunities to qualitatively change the state of regional budgets.

СУЧАСНИЙ СТАН, ПРОБЛЕМИ ТА ПЕРСПЕКТИВИ РОЗВИТКУ МІСЦЕВИХ ФІНАНСІВ УКРАЇНИ

The article is dedicated to the analysis of the revenues of local budgets and the state budget for the period from 2008 to 2020. The ratio of revenues to state and local budgets is calculated. These parameters are compared and the main trends are identified. It was found that the level of financial centralization of budgets remains consistently high. However, changes in the structure of budgets related to decentralization reform have not lost their relevance. It is researched the dynamics of the main components of local budget revenues according to the Budget Code of Ukraine (tax revenues, non-tax revenues, revenues from capital transactions, official transfers). The most important indicators are determined and their dynamics are analysed. t was found that the financial stability of the budgets of territorial communities is possible in the presence of their own financial resources, as well as the ability of local governments to accumulate and use them. Given the need to review the financial capacity and independence of local budgets, the indicator of financial decentralization of tax revenues for 2008-2020 is calculated. It is also realized an analysis of the dynamics of growth of tax revenues in the structure of local finance. The dynamics of changes in tax revenue indicators is studied and the influence of decentralization transformations on their structure is revealed. The dependence of their indicators on the implementation of the reform of the financial transformation of the public administration system was also revealed. It is pointed out the dynamics of the share of official transfers in the structure of revenues to local budgets and their growth rates. According to the results of the research, it has been identified peculiarities of the intergovernmental transfers impact on the level of financial autonomy of the budgets of territorial authorities in the context of decentralization reform. Also, on the basis of this study, the main problems of filling the revenue base of local finances are identified and ways to solve them are formulated, which will increase responsibility and expand the range of powers of territorial communities.

Бюджетная устойчивость и динамика экономического развития регионов

The paper is devoted to some aspects of regional budget sustainability. The analysis is based on data of revenues of regional budgets of the Far-Eastern federal district. Under the review of approaches to analyzing of budget sustainability we found significant variety of definitions and methods of budget sustainability estimation. The consequence of this diversity is a mismatch of results of scientific researches. We calculated the coefficient of elasticity of tax and non-tax revenues by gross regional product in order to assess the level revenues sensitivity to changes in economic situation. Then we analyzed the dynamics of budget revenues and estimated the scale of fluctuation. The analysis showed that the budget revenues of the territories of the Far-Eastern federal district are mostly characterized by the low level of sensitivity to national trends in the economic development. The degree of their sensitivity to changes in the economic situation in the region is evaluated as high for the Republic of Sakha (Yakutia), the Kamchatka territory and the Sakhalin region. These regions differ significantly in the share of intergovernmental transfers in the income structure, which confirms the absence of direct link between the dependence of the budget on the budget regulation measures and the sensitivity of its revenues to changes in the economic situation. According to the second criterion, the highest risk of reducing sustainability is typical for the Sakhalin region and the Chukotka autonomous region. We share the opinion that complex economic development remains the most important measure for providing of budget sustainability. The results of the study can be used in the educational sphere and become a basis of further investigation devoted to the budget sustainability.

Управление рисками монопрофильных поселений в рамках фрактального подхода

The article presents the results of the author’s study of single-industry territories within the framework of the fractal approach. The relevance of the researching is since the risk management of mono-profile is one of the most important elements of differentiated management impact on the socio-economic system of the territory to ensure its harmonious development. The aim of the work is to assess the risks of single-industry using elements of a fractal approach to the study of the social and economic space of mono-territories. The methodological basis for the application of the fractal approach is based not on a geometric cut, but on its structural and semantic content. This assumption also considers the significant nonlinearity of development processes and environmental influences in socio-economic systems. In this context, the researching is presented as a generator of scientific novelty. This formed the basis for the fractal grouping of single-industry territories of the Chelyabinsk region. During the research, fractal properties of socio-economic systems were identified, such as hierarchical certainty; self-similarity/presence of an element that repeats itself on a decreasing scale; unevenness/fragmentation; intersection of different fractal models in the socio-economic space; the presence of multiple control centers; openness. This researching confirms that the high risks of socio-economic development of a single-industry settlement are caused not only by the formation of a poorly diversified local labor market, but also by the strong dependence of the municipal utilities on the infrastructure facilities of the main city-forming enterprise, and the municipal budget on tax and non-tax revenues of the city-forming enterprise. To analyze the risk component, the work compared the level of employment in large and medium-sized enterprises with indicators of small business development, which was assessed based on the turnover indicator of small and medium-sized enterprises. The learning of the risks of single-industry allowed dividing the single-industry towns of the Chelyabinsk region into 3 groups, each of which is described from the standpoint of the availability of resources for diversifying the socio-economic system and choosing priority areas for development. In addition, the results of the study of single-industry settlements in the Chelyabinsk region actualize the need to transform the space of the territory through changes in the localization nature and fractal properties of the economic and social environment. The continuation of the researching is implemented in the algorithmization of the process of diversification of single-industry territories, contributing to the growth of its competitive advantages, and, consequently, capacity building.

Фіскальне навантаження в національній економіці: динамічний аспект

The article is concerned with features of the taxation system in Ukraine. The authors disclose the meaning and structure of the tax system, which, in turn, are determined by tax policy, the latter belonging to the exclusive right of the State that conducts it independently, in accordance with the tasks of socio-economic development. The research is aimed at highlighting the essence of the tax system, analyzing the theoretical-methodological aspects of its development, studying the current state and identify the main problems and prospects of the taxation system in Ukraine, as well as developing proposals for ways to improve it, taking into account the present day requirements of in this sphere of relations. The functions and principles of the taxation system construction are considered. The list of actual problems of the domestic tax system is generated. The reasons and prerequisites for the problems faced by the tax system in the process of its functioning are disclosed. The concept of tax as a key element of the taxation system is distinguished, as well as tax revenues, which is one of the components of the State budget revenues. It is noted that the problems of excessive tax burden and contradiction of tax legislation in Ukrainian realities are especially topical. Statistical indicators are provided, an analysis of the tax and non-tax revenues to the Consolidated Budget of Ukraine is carried out in the context of three budget periods according to the reports on the implementation of budgets of the State Treasury Service of Ukraine; their dynamics are analyzed; appropriate generalizations, conclusions and proposals have been made. The need for further development and improvement of the taxation system, solving the problems of optimization of tax offenses in the current unstable conditions of functioning of the domestic economy are substantiated. Measures to increase the economic efficiency of the tax system of Ukraine and the directions of reforming this system at the present stage of its existence are proposed.

УСТОЙЧИВОСТЬ БЮДЖЕТНЫХ ДОХОДОВ СУБЪЕКТОВ РФ И ЕЕ ИСТОЧНИКИ

Sustainability of regional budget revenues and the overall regional economic sustainability are mutually influential. The present research contributes to the identification of internal sources of budget sustainability observed in the constituent entities of the Russian Federation. The study proposed and tested an approach to distinguishing between steady growth rates of real revenues per capita of sub-federal budgets and their volatility using linear time regressions. The variance of the residuals is considered as an absolute measure of risk (instability), while the ratio of the residual standard deviation to the average income value is seen as a relative measure. Based on the construction of partial time regressions and use of variance rules, indicators of budget sustainability were decomposed according to income sources. The proposed methodology was applied to assess average real budget revenues per capita and determine steady growth rates, absolute and relative risks in 83 entities of the Russian Federation in 2010–2017. Budget systems of certain mining and border regions are characterised by low stability, while some highly diversified regional economies of the European Russia proved to be the most stable. In the group of tax revenues, the profit tax is the relative amplifier of budget risk, and the personal income tax is the risk damper. In the group of non-tax revenues, income from the sale of assets is the instability enhancer, and income from the use of property is seen as the damper. Among gratuitous receipts, subventions, followed by grants, play a stabilising role, while subsidies act as destabilisers. The dissimilarity between budget risk structures of the regional average and country portfolio, the most notable in the group of transfers, was explained by different time correlation of budget revenues in Russian regions. The proposed approaches can be improved by using non-linear regressions and appropriate methods for decomposing indicators of budget sustainability according to sources. The research findings can be used for the management of sustainable regional development and intergovernmental relations in the Russian Federation.

LOCAL LEVEL BUDGET FORMATION SYSTEM: THEORETICAL ASPECTS, TRENDS AND DEVELOPMENT PROSPECTS

This article is devoted to the study of the peculiarities of the functioning the system of budgeting local levels in Ukraine. The aim of the article is to study the theoretical aspects of the local budget system, to conduct the analytical assessment of trends in the functioning of local budgets and to study the prospects for their further development. Systematization of literature sources to determine approaches to the essential component of the local budget allowed defining the local budget as detailed plan for the use of financial resources, economic relations related to improving the social life of citizens. Based on the functional approach to regionalization of taxation, the scheme of the system of local budget formation has been formalized. It allows taking into account the influence of objective and subjective factors. The article considers the key tasks and vectors of the local budget system. As part of the analysis of current trends in the development of local budgets, the diagnosis of revenues and expenditures for the period from 2015 to 2020 is hold. The results of the analysis showed volatile dynamics in the comparability of revenues and expenditures of local budgets and provided an opportunity to obtain a comprehensive assessment of intergovernmental transfers from the budget of Ukraine for socio-economic development of regions to reduce their economic differentiation and ensure the implementation of state regional powers. The analysis of the revenue and expenditure part of the local budget of Ukraine allowed studying in more detail the peculiarities of local budget formation, identifying certain patterns and forming measures to prevent emerging problems in budget execution in the country. Taking into account the defined system of formation of local level budgets and the analysis of strengths and weaknesses of budgets functioning the basic directions of maintenance and perspective development of budgets of local levels are considered. These include: increasing tax and non-tax revenues to the budget due to the set of measures at the local and regional levels; increasing the level of efficiency of intergovernmental transfers; improving the methodological and practical aspects of encouraging economic entities to increase their own incomes.