CAUSES OF UNCERTAINTY AND RISKS OF INTER-BUDGETARY RELATIONS IN UKRAINE

Abstract

As the formation of Ukraine as a sovereign state, the role of local government, improved control mechanisms in the self-governing structures, there is decentralization of management. The article describes the main European model of intergovernmental relations and the stages of reforming the budget system associated with the development of financial decentralization. The attention that the main problem of reforming inter-budgetary relations in Ukraine is the failure to comply with the sequence of steps in the implementation of reforms. The lack of reform has created a highly uncertain institutional situation in the management of a major part of local budgets mainly because of programs that have been submitted for execution at the local level, but in which the central government has retained the basic measure of responsibility (both for funding and for the nature of services). It was concluded that at the local level should be set up and provided full management efficiency of strategic planning in the relevant field. At the same time the central government should abandon the idea of direct calculation of the cost of providing services at the local level, and to implement a more transparent, strategic and analytical approach is the use of budgetary resources.