The mechanism of forming the revenue of local budgets has been improved, which is a dynamic hierarchical structure of the relevant institutional components, which unites all stages of the budget process, including forecasting, planning, approval, implementation, and control. Provisions are proposed for assessing the level of tax capacity of local budgets, expanding the fiscal space of territories, developing the mechanism of tax administration. They are taking into account the peculiarities of the model of intergovernmental relations.
The expediency of increasing the efficiency of the use of development budgets in ensuring endogenous economic development of territories is substantiated. Provisions have been developed to determine the peculiarities of the development of the mechanism of local budget expenditures and their impact on economic growth, which will help increase budget efficiency and optimize the expenditure part of the budgets of territorial communities.
The author has improved the provisions on the formation of budget policy in the field of intergovernmental relations. It is proposed to strengthen the financial capacity of local communities by improving the quality of administration and increasing the fiscal importance of local taxes and fees. The progressive transition to the practice of establishing a real estate tax base in the form of its market value requires a systematic development of the institutional foundations of property taxation and the transformation of the powers of base administrators, respectively, and time costs. An alternative scenario for the real estate tax, which may operate in the transition period, is the use of the real estate as a base, but with differentiated rates depending on the type of real estate and the adjustment factor of the local community depending on the number of inhabitants. It is advisable to specify the indicators and criteria that are taken into account in the distribution of the subvention for the implementation of measures for the socio-economic development of individual territories.
Approaches to long-term forecasting and planning of local budgets are proposed based on the relationship of budget indicators with strategic goals of socio-economic development of territories, strengthening the functional adaptability of budget regulation to economic development, and improving the efficiency of budget instruments.
In the course of the research, the conceptual bases of formation of local budgets in the conditions of institutional development of a budgetary system in part of the maintenance of mutually coordinated use of tools of fiscal regulation of social and economic development of territories, strengthening of tax potential of budgets of administrative-territorial units, the mechanism of estimation of efficiency of expenses of local budgets taking into account the quality of public goods and services, taking into account the impact of budget decentralization on the dynamics of economic growth, which is aimed at reducing the transaction costs of fiscal policy and improving the economic welfare.
