Filimoshkina I. Financial resources of local authorities in the process of financial decentralization

This dissertation is focused on theoretical background of deepening and practical recommendations development about improvement financial resources management by local authorities under fiscal decentralization process. The author specifies the "local authorities’ financial resources" definition, highlights the role of subjective factor in the implementation of the target attribute of financial resources, proves the necessity of introducing a new financial resources classification criteria, namely the effectiveness of using by the degree of achievement of the goal. The participants of the process of formation and use of local authorities’ financial resources have been identified, methodological approaches for researching the essence of contradictions between them are grounded and ways to overcome them are proposed. The risks of fiscal decentralization are identified and ways of minimizing them are developed. The shortcomings of the methodology for determining the financial capacity of the territorial communities were identified and recommendations for its improvement were suggested. The author has proved that fiscal decentralization in Ukraine despite some positive effects did not provide a significant increase of local government's financial resources. Ways to increase own revenues of local budgets are introduced. It is proved that the mission of communal enterprises in Ukraine is not fulfilled. The reasons of the loss-making of communal enterprises are revealed. The conceptual principles of formation and use of financial resources of communal enterprises are substantiated.