LOCAL BUDGETS: CURRENT STATE AND FEATURES OF FORMATION

Abstract

The article examines regulatory and legal support, regulation, general principles of formation and implementation of local budgets of Ukraine. A detailed analysis of the revenue structure of local budgets for 2020 – 2023 was carried out: a significant share of which is made up of tax revenues of more than 60 percent, as well as funds from state administration bodies of about 27 percent. Changes in the dynamics of indicators are primarily related to the spread of the infectious disease COVID-19 and the invasion of the russian federation into the territory of Ukraine. An analysis of the structure of local budget expenditures was carried out, it was noted that the largest percentage of funds is directed to the field of education, 40 percent, and economic activity, 10 percent. As for social protection, health care, spiritual and physical development, their share in the expenditure structure is lower compared to other areas. Changes in the structure of local budget expenditures correspond to the urgent needs of the population, reflect the general socio-economic condition of a certain region and its capacity for sustainable development. During the studied period, the annual plan of local budgets in terms of revenues and expenditures was underachieved, with the exception of 2021, when the annual plan was exceeded by 0.6 percent in the revenue part of local budgets. Maintaining a certain balance between the revenue and expenditure parts of local budgets is positively reflected in the functioning and development of administrative and territorial units. In order for local self-government bodies to implement effective policies in all spheres of regional life, it is necessary to ensure the stable development of infrastructure and industry, which will lead to an increase in tax revenues and income in general, by increasing profitable organizations, institutions and enterprises in the territory of a certain administrative unit. The level of development of the region also depends on the share of foreign investments in the structure of its income, therefore, the development of investment projects and participation in international grant programs are an integral part of the activities of local management bodies.