Dalievska T. Financial support of local government in the intergovernmental relations

The essence of financial support of local government as the part of intergovernmental system and regulator of reproduction processes of administrative units' socio-economic development is revealed. Approaches to the determination of institutional changes in the system of budget's regulation that will enable the intergovernmental relations' balancing are proposed. Methodological approaches to assess the financial sustainability of local budgets, which are based on using matrix of cluster analysis the local government budgets' indicators; provisions on the characteristics of formation revenue and expenditure's part of local budgets, which will provide an opportunity to strengthen the financial basis of performance the local government's functions; approaches to increasing the level of local government budgets' financial autonomy with regarding to the intergovernmental relations system streamline, which contribute to the creation financial conditions of balanced administrative units' economic development are improved. Approaches to local government financial support in countries with developed and transitional economies are generalized and systematized that will increase the quality of local budgets' formation. Position to determining the stages of formation local finance in the country are developed in order to enhance the degree of local communities financial basis of balance and transparency; priority approaches to strengthen the effectiveness of the system of local government financial support with regarding to territorial development trends and key challenges of social and economic policy at the local level are developed.