• Iryna Prikhno
Keywords: decentralization, socio-economic development, territorial community


It has been proved that in the context of financial decentralization, existing mechanisms of territorial financial resources formation and use of need improvement.
The purpose of the study is to identify the positive and negative effects of financial decentralization in Ukraine and to find effective sources of local budgets replenishment to increase the level of socio-economic development of the territories.
The dynamics of local budget revenues are analyzed in terms of budgets of the united territorial communities. It has been found that local government general fund’s own revenue tends to increase, although the annual growth rate of local government general fund’s own revenue is somewhat slowing. The process of decentralization in Ukraine is characterized by a rapid increase in the total number of united territorial communities. The rate of united territorial communities’ budgets own revenues growth is the highest in comparison to other local budgets.
The structure of own income of the united territorial communities is investigated. It is revealed that the income of the territorial communities is generated mainly by income from the personal income tax and by local taxes and fees.
It was found that the amount of state support for the development of territorial communities and the development of their infrastructure is significant and has a steady upward trend. In the structure of state financing of local self-government in Ukraine subsidies for socio-economic development and for development of medicine in rural areas, and financing by the State Fund for Regional Development prevail.
A number of measures are proposed that will contribute to the growth of financial support for the socio-economic development of the territories.