Information on the thesis

In the dissertation the theoretical synthesis was made and the new solution of an
important scientific problem was proposed – development of theoretical and
methodological principles, development of scientific methodical approaches and
substantiation of practical recommendations concerning the development of local
budgets in the context of financial decentralization in Ukraine. The theoretical bases of
development of local budgets, their essential characteristics, functions, principles, and
influence on socio-economic development of regions and administrative-territorial
units of the basic level are revealed.
The main aspects and systematized advantages and risks of the impact of
financial decentralization on the processes of social and economic development at the
local level are outlined. Methodological principles of research of development of local
budgets in conditions of financial decentralization are substantiated, the method of
diagnostics of the level of budgetary decentralization of regions is proposed. An
assessment of formation and implementation of local budgets in the context of the
reform of local self-government was made. The main changes in development of local
budgets in the period before and after the beginning of decentralization in Ukraine
were determined. The obtained results allowed formulating practical recommendations
for improving the effectiveness of formation and implementation of local budgets.
The conceptual model of development of a territorial community in conditions
of administrative and financial decentralization, which provides effective use of
internal potential of a community, combining budget potential, potential of business
entities, households and financial and credit institutions and their interaction, is
proposed. Expediency of a preliminary assessment of functioning of local self-
government bodies in the direction of formation and use of endogenous potential and
definition of directions of community development in the long-term perspective, based
on such assessment, is proved.
Methodological approach to diagnostics of the level of budgetary
decentralization of regions is proposed, aimed at revealing the features and regularities
of structural changes in the region’s economy in conditions of financial
decentralization on the basis of the methodology of diagnostics of the level of
budgetary decentralization of regions. Expediency of calculating the integral index by
the method of rating analysis as s methodological basis of integrated assessment of the
impact of financial decentralization on the budget provision of socio-economic
development of regions is argued.
An assessment of formation and implementation of local budgets in the context
of the reform of local self-government was made. The main changes in development
of local budgets in the period before and after the beginning of decentralization in
Ukraine were determined. The analysis is carried out at two levels – regional and level
of territorial communities, – which is explained by the need to identify the impact of
socio-economic differentiation of development of regions on community development.
The results, obtained in the research, allowed to formulate practical
recommendations for improving the effectiveness of formation and implementation of
local budgets. Conceptual bases of development of local budgets in conditions of
financial decentralization aimed at providing economic endogenously oriented growth
are developed. There were determined guidelines for development of local budgets,
which include: increasing the revenue base of local budgets; ensuring the effective
implementation of budget expenditures and increasing the cost of economic
development for community development; improvement of intergovernmental
transfers. Based on these guidelines, local budget development tools are identified as
following: establishment and administration of local taxes and fees; development of
entrepreneurship in a community; disposal of property that is in communal ownership;
cooperation of territorial communities; management and disposal of land resources;
ensuring the legal culture of local self-government bodies. Organizational and
economic approaches to development of entrepreneurship in territorial communities
are developed. Areas of performance of local self-government bodies for activation of
entrepreneurship on the territory of a community are highlighted.
It is proved that tax revenues are the main source of filling local budgets. In this
context, definition of tax revenues as the main source of local budget revenues is
focused on improving the tax mechanisms for filling the budgets of territorial
communities in terms of collection of personal income tax and the procedure for
administering property taxes.
Key words: local budgets, territorial community, financial capacity of a
territorial community, financial decentralization, cooperation of territorial
communities, local budget revenues, expenditures of local budgets, intergovernmental
transfers.