Goal of research is concluded in foundation of theoretical basis for determination of the system of financing of the local self-government and development of suggestions in relation to the use of foreign experience in Ukraine.Methods of research are system analysis of the financial providing of local self-government, methods of abstraction and formalization, comparative analyses, an analytical methods, historical approach.Theoretical and practical results. Specified definition of “system of financing of the local self-government” and also components of institutional structure of these systems and the list of basic instruments complemented. The classification of the systems of financing of the local self-government in the unitary european countries specified as centralized and decentralized systems, the differences of the Ukrainian system of the financial providing of local self-government exposed, on the basis of comparative analysis of institutional bases and indexes of structure of revenues and expenditures of local budgets, namely: low level of financial autonomy of budgets of local self-government, insignificant receipts from the local taxes and fees, weak own revenue base, dependence, on transferts from the state budget, and also vagueness of basic financial institutes in Constitution and laws of Ukraine and idless of basic instruments of the financing of the local self-government; lack of development of financial relations between organs of state authority, subjects of local self-government and entrepreneurial activity and citizens in the process of giving public goods and its resource providing.The innovations of thesis are proposing first time the determination of “system of financing of the local self-government” as an aggregate of legal norms, financial institutes, instruments and financial relations, the essence of this system is determined as relations between public authorities, local self-government bodies, private authorities and citizens in the process of financing public goods and its resources providing; obtained the subsequent development of determination of institutional structure of this system, in particular by including: public services, local budget, capital budget, local taxes and fees, communal credit, communal own property; the list of basic instruments of this system specifies by including: municipal securities, credits, state social standards, norms of charges, coefficients of fiscal equalization formulas, grants; as rezults of comparative analysis of institutional base of this system in the unitary european countries is classification of the systems on centralizing and decentralizing by the comparing of such characterizing their indexes: share of revenues and expenditures of local budgets in GDP, share of local taxes in GDP, share of grants in total revenues of local budgets, indexes of structure of revenues and expenditures of local budgets; the suggestions on becoming the system of financing of the local self-government in Ukraine develop by way: clarification of legal status ofbudgets of local self-government as budgets of territorial gromada’s, budgets of district and regional local self-government bodies are defined; as well as proposals on development of institutes: public services; local taxes and fees, in particular, tax on property as a local tax; communal own property and common property of territorial gromada’s are developed; also proposals on improving the efficiency of instruments of this system by increasing of incomes from the operations with capital and municipal borrowing are developed.Application of the thesis’s achievement. Scientific and practical conclusions and suggestions in relation to development in Ukraine fiscal equalization system, improvement of order of forming local budgets, dividing of fiscal powers between state and local budgets, to computation of coefficient of relative expense necessities of regions are used by the Scientific-research institute Ministry of finance of Ukraine; by Foundation of local self-government of Ukraine in the process of development of draft of the Program of state support of development of local self-government in Ukraine and measures on implementation of tasks foresee by this Program; by Association of the Ukraine financial officcers during realization of the project “Development of scientific-methodical educational complex of financial “Management of local self-government”.Sphere of using. Public finance, local finance.
