FINANCIAL DECENTRALIZATION OF TERRITORIAL COMMUNITIES IN THE CONTEXT OF THE IMPLEMENTATION OF INTERNATIONAL EXPERIENCE

Abstract

Abstract. The experience of European countries in terms of a perfect budget process and high financial discipline is important in the presence of a set of problems in the process of decentralization, which must be taken into account and eliminated in advance. This article examines the scientific and applied aspects of decentralization, analyzing the experience of European countries and outlines methodological approaches to assessing the development of local communities in modern conditions. Important aspects are outlined and the advantages and disadvantages of the impact of financial decentralization on the processes of effective development at the local level are systematized. Emphasis is placed on the need for a comprehensive reform of local self-government, which will primarily include a reform that will relate to the administrative-territorial system and the redistribution of powers and resources between different levels of government. Guidelines for the development of local budgets in the main are as have been identified. A conceptual model of territorial community development in the conditions of financial decentralization is proposed, which provides for an effective combination of budget potential, potential of economic entities, households and financial institutions and their interaction. The structure of budget revenues in European countries is analyzed. The focus is on the level of subsidies with in-depth analysis. A method of monitoring and evaluating the effectiveness of administrative and financial decentralization in terms of determining the financial capacity of the united territorial communities has been developed. It is noted that the solution of the problems of financial decentralization should be carried out on the basis of studying, generalizing and taking into account the best international experience. The world experience in the structure of local budget revenues in European countries is studied. The scientific novelty of the obtained results is represented by a set of theoretical and practical aspects of the study, namely proposals on the current state of the main activities of local governments to enhance entrepreneurship in the community in the context of implementation of international experience. Keywords: territorial community, financial decentralization, financial resources, local budget, tax revenues, subsidies, resource potential. JEL Classification J11 Formulas: 0; fig.: 6; tabl.: 2; bibl.: 19.