Object of research: the local budgets’ incomes in the modern stage of the development of Ukraine economy. The purpose of research: theoretical investigation of the process of forming of the local budgets’ income revenue in the transition conditions and experimental elaboration of the scientifically proved strategy of its improvement. Methods: dialectic, dialectic cognition, theoretically analytic, analysis, synthesis, generalization, statistic comparetion, economically mathematic. Theoretical and practical results: it was improved the system of forming the local incomes revenue through getting over the model of restructuring the local economy by financing priority branches of economy in the local level and getting over the methodises of the determination of the level, the boundary of affectivity and the effect of budget decentralization at the grows of affectivity of the local self-governments, working out the model of dynamic programming of the best structure of the local income revenue, which will give the opportunity of local self-governments to plan the optimal incomes to local budgets in the condition of having enough financing for their authority. Scientific novelty: it was proposed a new definition of the term “budget decentralization” as every mobilization of financial recourses in the local self-governmental budgets and it was classified for different types of models of economies: sending as a delegate, devolution, and decentralization; it was developed the complex methodise of the measuring the level of the budget decentralization in the country, it was improved, that the budget decentralization has the positive impact on GGP and local income revenue; it was worked out the methodise of the definition of the optimal structure of the local income revenue and the model of the development of the local economy trough step-by-step financing of the priority branches of economy by the local budgets and underbudgetal fonds. Degree of introduction: the results and conclusions are used The main financial department of the local, recourses and rental payments of the State Tax Administration of Ukraine, The main financial department of Kyiv’ city state administration, The State Treasury of Ukraine, and in the t financing priority branches of economy in the local level teaching process to lead the courses: “Finances”, “The budget system of Ukraine”, “The local finances”, “The tax system of Ukraine”, “The budget system of Ukraine”, “Taxes in Ukraine” and “The taxation by local, recourses and rental payments” by the department of state finances of the Academy of State Tax Service of Ukraine. Efficiency: use of results will raise efficiency of forming the local incomes in conditions of market transformations. Sphere, area of use: the Ministry of finances of Ukraine, the local self-government institutions.
