AN INCREASE OF LOCAL BUDGETS FUNCTIONING EFFICIENCY IN UKRAINE

The features of local budgets functioning are analyzed under the conditions of budgetary-tax decentralization strengthening, creation of financially independent local authorities. Basic directions of the local budgets development, namely, the increase of regional tax potential, optimizations of budgetary sphere, upgrading of local finances management, development of the system of the horizontal budget on the basis of funds of the financial levelling and investment development of regions of Ukraine.It is well-proven that the development of the local budgets system is possible only on the basis of effective administrative-territorial reform in a country, development of the budgetary system, providing of financial inde-pendence of local authorities. It is defined that the development of purposeful method of planning, creation of the estimation system of local finances, the market of local loans, introduction of expense register, reasonable differentiation of profitable sources and expense are the basis of improvement of local budgets functioning in Ukraine.The purpose of the article is to develop complex recommendations to increase the efficiency of local budgets functioning.The scientific novelty of this research is the development of complex measures to increase the efficiency and effectiveness of the local budgets system, on the basis of its functioning mechanism improvement under the conditions of financial independence of local authorities. The improvement of the local budgets system offered by an author in term of profits, charges, interbudgetary relations will assist the increase of local authorities financial independence, prevent groundless distribution of interbudgetary transfers, strengthen the budgetary decentralization at the local level. In the future researches should be aimed at the development of the effective and reasonable system of local budgets estimation. It is necessary to create effective functioning mechanism of local budgets, determine their functions and organizational principles under conditions of Ukrainian economy transformation