Publication Details
Abstract
This article analyzes the priority directions for increasing the independence of local budgets. In particular, it discusses ensuring the stability of budget revenues, optimizing the composition of expenditures, and improving the mechanisms for effective distribution of tax and financial resources among regions. The article also examines current issues in the functioning of local budgets—such as excessive dependence on higher-level budgets, imbalance between revenues and expenditures, and the low share of non-tax revenues. Furthermore, it justifies new approaches to assessing tax potential based on the socio-economic development levels of regions and to distributing financial resources accordingly. It is argued that enhancing the authority of local governments and financial institutions, as well as ensuring efficient use of budgetary funds, is essential for strengthening the financial independence of local budgets.