Improvement of organizational support of local budget management as the basis of public administration

Abstract

The assessment of the formation of the expenditure policy of territorial communities in the conditions before and after the beginning of the reform of local self-government in Ukraine allowed to single out the positive tendencies of their development. Formation of capable united territorial communities, change and expansion of powers of local self-government bodies, transfer of additional financial resources to local budgets provided expansion of opportunities for development of territorial communities and directions of use of their financial and economic potentials. Nevertheless, the analysis of revenue and expenditure policy at the level of local budgets showed the problem of effective use of financial potential of administrative-territorial formations at the local level, which is manifested in increasing asymmetry of socio-economic development of territorial communities. Thus, there has been a rapid increase in the differentiation of tax capacity of administrative-territorial entities (which is one of the main criteria in the formation of united territorial communities), which have direct budgetary relations with the state budget. A separate problem is the growth of processes of concentration of economic entities in administrative-territorial entities, which are “growth points”, which entails the gradual expansion of “depressed areas”. As a result of the launch of decentralization processes, small cities have benefited, the pace of economic development of which has exceeded the level of development of large regional centers1. In addition, there was an increase in the level of asymmetry of social and economic development of administrative-territorial entities close to and away from regional centers, as well as between the united territorial communities and communities that are not part of the OTG. Risks that have emerged and been identified in the process of decentralization (in particular, along with the growing level of differentiation of social and economic development, financial capacity of communities, lack of experience in effective management and investment and economic attractiveness of territories), require review of local governments use of the internal potential of the territorial community.