Regional equalization in the system of intergovernmental relations

Abstract

The article analyzes the fiscal decentralization on the basis of the new model of financing of local budgets in Ukraine. The experience of developed countries that have similar stages of development is considered.

Introduction. Ukraine according to the Constitution is a unitary state, but somehow is has happened historically that the economic development of its regions is different. Urgent implementation of the system of redistribution between income and expenditures of the state budget areas is very actual today for sustainable social security. A similar situation exists also in most regions and between their separate cities and regions.

Purpose. The aim of the research is theoretical foundation for regional alignment of current practices within budget decentralization and relisation of the reform of intergovernmental relations.

Results. According to the results of the research we have come to the conclusion that nowadays the question of effective budget allocation and redistribution at the regional level is a very urgent one. This is particularly relevant in relation to the prospects for regional budgets financing in terms of decentralization.