Local budgets in conditions of decentralization: theoretical aspects

Abstract

The periodization of the development of the system of local budgets in the conditions of independence of Ukraine is considered, namely 4 periods: 1990-2000 2001-2009, 2010-2013, 2014 and to date, the basic regulations which were accepted in this period and had the greatest influence on development of the budget system, as well as the main changes that have occurred during this period.  The main legislative acts from 2014 were: Sustainable Development Strategy "Ukraine - 2020", the Concept of reforming local self-government and territorial organization of power in Ukraine, the Law of Ukraine "On Amendments to the Budget Code of Ukraine", the Law of Ukraine "On Voluntary Association of Territorial Communities" »And Methodology of formation of capable territorial communities. The approaches of Ukrainian scientists to the interpretation of the concept of "local budgets" are studied, namely: Khodorovych I., Kravchenko V., Oparin V., Vasylyk O., Kyrylenko O., Gaponyuk M., Yatsyuta V., Sazonets I., Hrynko T., Prydatko G., Bechko P., Rolinsky O ., Matveeva O., Vlasyuk N., Medinska T., Melnyk M., Nikolaeva O., Maglaperidze A.. The structure of the budget system and the place of local budgets in it are considered. The normative legal acts that had an impact on the formation of budget and tax decentralization have been identified. The main changes in the process of formation and implementation of local budgets in the period of decentralization of budget resources and expenditure powers of local governments, namely: reform of local government and territorial organization of government; the process of formation of sufficient financial and organizational conditions for the development of territorial communities has been launched; independent formation of local budgets is allowed regardless of the terms of adoption of the state budget; introduction of a system of equalization of tax capacity of territories; existing taxes and fees have been reformed. The results of changes in fiscal policy are the formation of capable territorial communities capable of effectively exercising local self-government, ensuring the expansion of their economic potential, effective implementation of assigned functions and strengthening democracy and the formation of civil society at the local level.