PROBLEMS OF REGIONAL DEVELOPMENT AND DECENTRALIZATION УДК 332.14:352/354 JEL: KRAVTSIV Vasyl1, STORONYANSKA Iryna2, ZHUK Petro3 1Institute of Regional Research named after M. I. Dolishniy of the NAS of Ukraine, Research ID : http://www.researcherid.com/rid/https ://www. scopus. com/authid/detail.uri?authorld:5 7 1 9044202 REFORMING THE TERRITORIAL BASIS OF LOCAL SELF-GOVERNMENT IN THE CONTEXT OF ITS FINANCIAL SOLVENCY The analysis of the first results of the reform of local governance territorial basis in Ukraine is carried out and achievements of the reform are outlined. It is noted that during 2015 159 combined territorial communities were created in Ukraine; these communities received budgetary autonomy and greater powers in matters of local importance. However, this process slowed down in 2016. At the same time a number of problematic issues came out, which influenced negatively the processes of reforming of local governance and territorial organization of authorities. In particular, authors emphasized difficulties of the reform implementation according to the principle of voluntary association of communities and shortcomings of the acting methodical tools of communities combining. Special attention is paid to the dominance of financial solvency factor while forming combined territorial communities, which downgrades other socially important principles of their creation due to mismatch between current budget system and the tasks to be solved in the process of reforming of administrative and territorial system of the country. Low share of own local budget revenues in the consolidated budget of state and flawed acting mechanisms of state support of territorial communities’ budgets are indicated. Keywords:territorial organization of authorities, local governance, administrative and territorial reform, budget system, inter-budget relations
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