ASSESSMENT FINANCIAL DEPENDENCE OF LOCAL BUDGETS IN BUDGETARY CONSTRAINTS

Abstract

Purpose. Study, analysis and synthesis of the municipalities main problems to assess the financial dependence of the local budget with limited resources, and to develop some proposals for their resolution. Methods. Author analyzed the budget reporting and regulatory and legal acts of local government by using the methods of comparative and content analysis. Author came to conclusion about the financial dependence of the local budget on the timeliness and completeness of local government implementation functions as an institution of power and agent for the municipal services organization by using such methods as socio-economic, financial forecasting and planning, synthesis. Results. The relationship between the objectives of fiscal and socio-economic policy of the municipality in the face of shrinking budgetary resources were examined based on the dynamics of the revenue basic indicators and the local budget expenditure, innovations budget legislation based on evidence-based approaches and expertise, as well as their own conclusions. Author developed areas of local government improvement for the organization of the budget process for target-oriented basis. Scientific novelty. Scientific novelty lies in a justification characteristics finance municipalities financial dependence and study its impact on the organization of the budget process in conditions of limited budgetary resources; development of local authorities tactical activities as crisis managers in economic instability.