POTENTIAL OF LOCAL BUDGETS IN THE CONDITIONS OF FINANCIAL INSTABILITY

Abstract

Theoretical aspects of the formation of local budgets in Ukraine in the context of recent changes in the budget law discussed in the article. It noted the first results of the reform of intergovernmental fiscal relations, and the need for further deepening of the decentralization reform both the legal point of view, and fiscal capacity. The village, settlement, city councils and authorities of OTG should be allowed to set up individual preferential rates of local taxes and fees for the individual entrepreneurs and individuals or exempt them from payment of taxes and fees. We sketch the range of problems that still need to be addressed to deepen local financial theory.