ТRANSFORMATION OF BUDGET INSTRUMENTS OF REGIONAL DEVELOPMENT

Abstract

The article outlines ways to solve the problem of transforming budget tools of regional development. It is indicated on the need to reorient the management of the region towards achieving financial independence. A tool for achieving this goal should be a regional budget policy adequate to economic conditions, based on the use of regional development tools, including regional programs that increase the financial potential of the region and increase its financial independence.
The conducted research has shown that the solution of the problem of transformation of budgetary instruments of regional development is largely determined by the quality of formation of the mechanism of financing of the relevant regional target programs. For the time being, the regions whose operation is most dependent on state aid grants are in a particularly difficult situation, characterized by a reduction in the volume of state budget subsidies, with many regions being able to use mainly their own financial resources for development. This restriction necessitates the reorientation of regional governance towards financial independence. A tool for achieving this goal should be regional budgetary policies based on the use of regional development instruments, which include regional programs that enhance the financial potential of the region and increase its financial autonomy, as appropriate to economic conditions.
The effectiveness of the use of budgetary instruments of regional development largely depends on the powers and responsibilities of various participants in their implementation. It is about participating in all stages – creation, implementation, implementation and financing of the target program. The problems that arise in coordinating the actions of the initiators, customers and executors are complex in nature and, in our opinion, due to the imperfection of the legislative framework, as well as various regional conditions for the implementation of the programs, which is the basis for further research.