The thesis theoretically generalizes and proposes a new solution to an important scientific problem - to prove the theoretical and methodological foundations and develop scientific and practical recommendations for the formation and implementation of mechanisms for the development of local finance system in Ukraine in the context of public administration decentralization. Based on the research results, the following conclusions and proposals of methodological, conceptual and theoretical, as well as those of applied nature have been formulated.
Based on local finance scientific analysis, conceptual and categorical instruments have been developed. The nature and main characteristics of local finance as public finance component, local community financial resources peculiarities, and local government functions in local finance management are determined. The ideology of local authorities’ financial autonomy in the historical retrospective has been analyzed and the relevance of European standards implementation in local finance structure has been determined to conduct a set of reforms in Ukraine.
The methodological principles of local finance management in the context of public administration decentralization are investigated, the classification and structure of local finance management system are proposed, the public administration decentralization as a prerequisite for local finance effective functioning is considered. Methods, principles and tools for the local finance management in modern economic systems are determined.
The need for financial decentralization in Ukraine has been proved, its basic principles have been determined and a matrix of local government functions has been proposed, enabling to detail their activities, to specify the content of decentralization and build local finance management models, create organizational forms and influence schemes on financial resources and overview the existing managerial mechanisms. Local finance management models, classified by groups, and local finance management tools are analyzed.
Foreign experience analysis in regulating inter-budgetary relations is carried out, a number of progressive elements are identified which can significantly increase the local government financial ability and budget management quality in domestic practice. The classification of world budgetary relations models is carried out according to income generation.
The analysis of the current state and tendencies of local finance management system in Ukraine is carried out. The development of local self-government main financial institutions in Ukraine, the regulatory framework for financial decentralization processes and its level in the context of local self-government and territorial organization of power reforming are analyzed. In addition, functioning peculiarities of public administration mechanism in the system of inter-budgetary relations in Ukraine are considered. Local budget financial independence degree is determined, the need to review the budget equalization and the implementation of budget incentives paradigm have been proved, which will expand the local government financial capabilities, in particular not only increase local budget revenues, but give local governments a wider range of powers for financial independence that will contribute to their financial stability.
Key words: local finance, local finance management, public administration decentralization, inter-budgetary relations, inter-budgetary transfers, financial equalization of inter-territorial imbalances, mechanism of public administration in the system of inter-budgetary relations, financial decentralization model, participative budget, local finance digitalization.
