DECENTRALIZATION OF LOCAL BUDGETS IN UKRAINE: PROBLEMS AND PROSPECTS

Abstract

The article studies theoretical problems of decentralization of local government, local Finance. The decentralization of power and Finance allows each region the right to successful development. In the current situation, we have the excessive centralization of power and financial resources in one institution, which allows to concentrate all the financial resources at the top and redistribute them down in manual mode, places the region in a complete dependence from the center, making unbalanced system of local government, community, weak, not able to solve the issues of socio-economic development. Shows the macroeconomic indicators of Ukraine and their impact on economic development of regions. The main causes of the current situation and the basic directions and prospects of decentralization of local Finance: the adopted amendments to the Constitution of Ukraine, the extension of the tax potential of the regions, elimination of the "shadow" wages and small businesses avoid bankruptcy organizations, revenue mobilization, reduction of unjustified budgetary obligations, establishing order in the land and municipal property, effective management of local finances. These directions will contribute to the decentralization process, will enhance the role of the region, district, communities in addressing important issues of socio-economic development.