Negoda J. The improvement of inter-budget relations in the conditions of local budgets revenues shortage

The main theoretic-methodological principals are indicated and shown in the following thesis concerning current functions of the budget in the system of financial economic relations in the country, and also concerning mechanism of inter-budget relations, which executes governing, smoothing, stabilizing and other tasks as to national and local budgets in the conditions of transformation to the main principals fulfillment. There are also concepts of local self-government and territorial power organization reforming in Ukraine stated. The differences in the financial conditions of local authorities functioning during the central planning and market economy systems are shown, the results of changes analysis that took place in the financial solvency of the local budgets till and after the Budget Codex of Ukraine adopted in 2010, are given also. The role of the local budgets in ensuring public services financing, responsibility increasing for their providing and fiscal deficit strengthening is clarified. The contribution of income tax in the territorial communities budgets revenue part forming is assessed. There are model variants for financial solvency of local budgets worked out on the basis of securing for them the estimated shares of the national taxes (enterprises income taxes, VAT and excise duties) that come from the territory corresponding ATO. There are directions, forms and specific instruments established of economic potential accumulation of territorial communities just to increase their taxable capacity.