Prots V. Financial support of local governments in the context of decentralization

The dissertation investigates the conceptual bases of financial resourcing of local governments, analyzes the financial base of local budgets, identifies trends and features of financial equalization, makes a comprehensive assessment of financial resourcing of territorial communities of Volyn region, identifies areas for improving the financial resourcing of the local governments in the context of decentralization. The author's correlation-regression model of the influence of factors on the formation of the financial base of local governments was developed, which allowed to identify three main factors that have the greatest impact on the volume of local budget revenues in decentralization: official transfers; income tax; non-tax revenues. The lowest level of influence on the formation of revenues of local budgets of Volyn region had: rent and payment for the use of other natural resources and other revenues of local budgets. In order to increase the total revenue of local budgets, there was proposed to change the system of differentiation of rent payments on the principle of localization of natural resources. Based on the developed model, forecasts for future periods have been made, positive and negative scenarios for development have been developed, which will allow to optimize the sources of formation and directions of using budget resources, as well as taking measures to mitigate negative impacts. Performed research became the basis for the formation of directions and objectives to increase the level of financial support of local governments in a decentralized environment. Improving the system of financial support of local governments in the context of decentralization should be aimed at: increasing and expanding the financial base of local governments; improving the mechanism of financial equalization and inter-budgetary regulation; use of the mechanism of municipal cooperation and local borrowings; implementation of own initiatives and projects of citizens; ensuring openness and control in the formation and use of financial resources; organizational and legal regulation of relations between local government bodies of local communities and district councils and executive authorities. Implementation of the identified priorities will increase financial capacity, ensure publicity and transparency of financial activities of local governments, as well as accountability to the local community; will promote the interest of local governments in the development of programs of socio-economic development of territories, will create conditions for achieving strategic priorities and the formation of capable and capable territorial communities.