THEORETICAL ASPECTS OF FORMATION OF LOCAL BUDGETS OF UKRAINE

Abstract

The article examines the essence of the concept of "local budget" and various views on its interpretation in the economic literature. The theoretical foundations of the formation and composition of revenues and expenditures of local budgets are considered. The purpose of the article is to conduct a fundamental analysis of theoretical aspects in the formation of local budgets in the development of decentralized financial relations, as well as effective financial policy in the budget sphere, taking into account legislative changes and improving and stabilizing the functioning of local communities. Methhodology of research. The author presents methodological aspects of recognizing the role of local budgets in the policy of regional spheres of socio-economic development using methods: system and structural analysis, logical generalization, scientific abstraction, deduction. After all, this is one of the most important conditions for the functioning of territorial communities and the further stable functioning of the national economy. The sources of formation of financial resources of local budgets were also considered and the amounts of enrollment depending on the type of tax or non-tax revenue were determined. In addition, the main types of intergovernmental transfers have been established in accordance with the budget legislation of Ukraine. The main tendencies and prospects of development of the budget sphere are revealed. The issues that need to be urgently addressed and ways to improve to further improve the budget financing of enterprises in the enterprises of different sectors of the economy are proposed. Findings. On the basis of the data and normative-legal norms defined in the budgetary legislation the author systematized and generalized components of the general and special fund of local budgets. The paper defines and details the composition and structure of regulatory revenues of local budgets. It is proposed to strengthen the financial independence of local governments, local communities, budgetary institutions, enterprises and organizations through the development and implementation of regional development programs for local areas. It is also suggested that it is necessary to pay attention to the annual changes in budget and tax legislation, the process of forming local budgets, as well as the mechanism of budget regulation, which is carried out by local authorities to conduct long-term fiscal policy. Practical value. The sources of formation of financial resources of local budgets were also considered and the amounts of enrollment depending on the type of tax or non-tax revenue were determined. In addition, the main types of intergovernmental transfers have been established in accordance with the budget legislation of Ukraine. The main tendencies and prospects of development of the budget sphere are revealed. The issues that need urgent solution and ways to improve to further improve the budget financing of enterprises in the agricultural sector of the economy are proposed.