Foreign experience of formation of budget potential of local finances in the conditions of decentralization

The article highlights that in accordance with the decentralization reform, the relevant aspect today is the study of world experience in the formation and spending of local budgets. The budget system of European countries is studied. Economic and financial decentralization has led to the formation of intergovernmental financial relations that combine the principles of both budgetary unitarism and fiscal federalism. The interpretation of the concept of budget unitarism and federalism is studied. The shares of local budget revenues in GDP in European countries are analyzed. It has been studied that in the EU, nine countries use only one level of subgovernment (self-government); the other twelve countries have two regional levels (municipalities and regions); while the remaining seven are three levels below the national level (municipalities, regions and intermediaries). It is determined that the constitutions of some countries sometimes do not regulate the organization of local selfgovernment at all (for example, in the USA). An assessment of the experience of European countries in terms of budget revenues from local taxes. The analysis of dynamics of budgetary potential of local finances of the Rivne region is made. It is determined that the most important economic instrument is the budget, while the management of local governments in accordance with the established budget is mandatory by law in each country. Ways to increase the tax component of the budget potential of local finances are proposed. The ways of finding alternative sources of filling local budgets through the introduction of non-tax fees are outlined

decentralization, local self-government, local budgets, budget unitarism, budget federalism, budget potential, revenues and expenditures of local budgets