Abstract:

The purpose of this study is to determine the peculiarities of the development of local budgets in Ukraine in the frame of decentralization reform in the context of established trends in local budgeting in other countries. The research methodology is based on the theory of financial globalization and involves methods of dialectics, methods and principles of scientific knowledge, tools of analysis and synthesis, expert evaluation, generalization and analogy. As a result of the research, the foreign experience of forming local budgets is highlighted and the peculiarities of this process in different countries of the world are determined; a review of existing publications and an analysis of the dynamics of the structure of local budgets and Ukraine are done; qualitative characteristic of the current situation and recommendations for further development of the local budgeting process in Ukraine in the current conditions of globalization are provided. Among the main recommendations for increasing the revenue part of local budgets there are the following: creation of additional conditions by the state and local governments to improve the business climate in communities; inventory and arrangement of community land funds; creation and arrangement of the real estate register; audit of the communal enterprises activities of the community in order to find additional opportunities to increase the efficiency of their activities; support and motivation of local business for further activity and development; intensification of the centers of administrative services and search for opportunities which will improve the provision of paid services of any complexity in the short term; promoting the development of domestic tourism. The practical value of the results of this research is that the proposed recommendations are general, relevant and can be used for all territorial communities of Ukraine with no exception. The analysis of trends in the context of local budgeting development processes in other countries and the current situation regarding decentralization reform allowed us to conclude that Ukraine has chosen the right direction, which has a positive impact on the financial capacity of local communities. Ukraine’s path towards transforming the role of local budgets, despite the similarity of the general features of local budget restructuring, should be unique. The implementation of the presented proposals will contribute to the successful completion of the decentralization reform and the full implementation of the role of local budgets – ensuring sustainable financial capacity and meeting all the needs of the inhabitants of a particular area.

Keywords: