Introduction. Under conditions of radical social change, a sensitive segment of the development of a modern civilized country is the social sphere, whose activities directly depend on the amount of funding, efficiency and speed of transformational change, which has an impact on the level and volume of local services. The study of experience gained abroad in the socio-economic development of municipal education as a segment of the social sphere, in the context of the budgetary mechanism for state and regional priorities is relevant in terms of organic integration of Ukraine’s economy into the European Union (EU) and rapid changes in geopolitical environment. The purpose of the study is to reveal the specifics of the functioning of the budgetary mechanism of socio-economic development of municipal education, based on lessons learned from foreign countries, and to apply them to the maximum benefit for the development of municipal education in Ukraine.Methods. During the study, methods of data collection and systematization, analysis, synthesis, grouping, comparison, generalization, as well as tabular-graphical method of budget regulation instruments in EU countries, foreign experience in forming sources of local budgets, etc. were used.Results. Under the current conditions, solving financial problems in the field of municipal education is an urgent task for Ukrainian and foreign practice of state and local government. Risky economic conditions, significant budget insecurity and low efficiency of local authorities in the management of financial resources often lead to the emergence and existence of local communities that are financially insolvent. The process of functioning of the budgetary mechanism of socio-economic development at the state and regional levels is accompanied by a number of such factors: the approved model of cooperation between state and local administrations, the current budgeting system, the level of decentralization of revenue and the distribution of responsibilities. Local taxes and fees are an important tool of the budgetary mechanism of socio-economic development of the social sphere at the regional level in foreign countries.Perspectives. Acquired foreign lessons are very useful for Ukraine due to the stimulation of socio-economic development of education in the context of decentralization in the direction of: redistribution of management functions and increase the level of responsibility in favor of local government representatives; granting local authorities and management the right to form budget funds through the regulation of local tax rates, as well as the right to distribute such funds; strengthening the level of diversification of the tax base of the regions, namely: by expanding the revenue base of local budgets.