Pelekhata O. Modernization of intergovernmental fiscal relations in conditions of financial decentralization.

The theoretical aspects of interbudgetary relations in Ukraine under the conditions of local self-government reform are researched. The essence and peculiarities of the process of administrative and financial decentralization as the basis for the development of subregional territorial communities are determined. The concept of "intergovernmental relations" is defined by means of singling out certain essential features, namely: implementation of distribution and redistribution of financial resources, achievement of balanced development of budgets, stimulation of economic potential of regions. Unlike the existing ones, the proposed definition takes into account not only the financial support of local budgets, but also the regulation and financial capacity of the territorial communities. The regularities of the formation and functioning of the system of intergovernmental relations are investigated. The role and peculiarities of the formation of revenues of local budgets as the basis for the development of territorial communities and the system of intergovernmental equalization as the main instrument of equalization of financial capacity of local budgets are outlined. The tendencies and the main factors of the transformation of intergovernmental relations in Ukraine are investigated. A detailed and comprehensive analysis of intergovernmental transfers in the composition of local budget revenues of the Lviv region. This made it possible to highlight the problem of the constant reduction of the share of local budget revenues in the structure of the Consolidated Budget, which is related to the expansion of the base of national taxes, the influence of inflation factors and the devaluation of the national currency on the revenue from indirect taxes that come to the state budget .The analytical assessment of intergovernmental transfers as a way of financial support for the development of united territorial communities in the context of the reform of local self-government is carried out.