The article examines issues related to the key tasks of forming and implementing local budgets. The main goal of the work is to study the peculiarities of the formation of the budget potential of local finances in Europe and the USA, to determine the key points of local self-government in the world experience, to study the peculiarities and dynamics of the use of local budgets of Ukraine in conditions of decentralization and martial law. The urgency of solving the problem lies in the fact that globalization processes and the course towards European integration of the national economy, and decentralization require a new approach to the formation of local budgets aimed at balancing financial income with expenses, increasing the independence and powers of local authorities.This publication highlights the global experience of forming and implementing local budgets. The budget structure of the countries of Europe and the USA has been studied. It was noted that economic and financial decentralization in the countries of Europe and the USA led to the formation of intergovernmental financial relations that combine the principles of both budgetary unitarism and budgetary federalism. It was determined that the constitutions of some countries sometimes do not regulate the organization of local self-government at all (for example, in the USA).The article examines the current state and peculiarities of the implementation of local budgets in the conditions of decentralization of financial resources of Ukraine and during the period of martial law. inefficient use of financial resources. The study concludes that in modern conditions, it is necessary to increase the powers of local authorities to fill the local budget with income, and therefore, to increase the share of their potential. Taxes and fees transferred to local self-government departments must be under the clear and full control of these bodies.For the effective formation and implementation of local budgets, it is necessary to constantly analyze them and implement global best practices to increase revenues to local budgets, and as a result, the budget potential of the region.
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