Introduction. The formation of public administration in Ukraine is simultaneously influenced by many factors. These are both the service view of the state and the development of the doctrine of administrative services, and the implementation of decentralization reform, in particular the consolidation of territorial communities, as well as digitalization. In this context, it becomes an urgent task to assess the effectiveness of policy on decentralization of powers, its positives, risks, prospects. Aim of the article. The purpose of the article is to study the issue of decentralization of powers on the example of administrative services, the reasons for slowing down this policy in recent years, determining the conditions for optimal organization. Tasks: to determine the content of decentralization of powers and its types; to distinguish decentralization of powers with other mechanisms of division of powers; show the factors that motivate Ukraine to the policy of decentralization (delegation) of powers in the field of administrative services; propose the optimal mechanism of delegation of powers; outline the most pressing tasks for the delegation of the following groups of services. Results. Ukraine's experience in delegating powers to local self-governments (LCGs), in particular, in the registration of real estate, business, residence has been successful. Services have become closer to citizens territorially, queues and reasons for domestic corruption have disappeared, the speed of service delivery, their integration into a single office (CNAP) and opportunities for service according to the model of life situations have improved. Delegation of powers of local self-government bodies allows to use motivation and flexibility of local self-government bodies, initiative and responsibility of citizens. Although there are risks of different LCGs capacity and quality of services. But it is better for the state to help local self-government bodies and "insure" them. It is also important to ensure the integrity of the mechanism of delegation of powers, ie to provide for the preservation of centralized state registers, methodological assistance from the state for local self-government, professional departmental control over the implementation of delegated powers. The reasons and peculiarities of decentralization of residence registration powers should be analyzed separately. But this experience is also quite successful. After all, he also improved the service for consumers, promoted electrification in the field. Decentralization of powers is not an alternative or opposition to digitalization. These are two equally important strategic directions of public policy. Conclusions. In a modern democratic and decentralized state, it is necessary to make maximum use of the motivation and flexibility of local self-government bodies, in particular, to delegate to them the authority to provide basic administrative services. It is important to ensure the integrity of the delegation mechanism, and to provide local self-government bodies with resources to perform delegated powers. During 2021, priority in the delegation of powers should be given to the areas of registration of civil status and administrative services of a social nature.