FISCAL DECENTRALIZATION OF UKRAINE: SEARCH FOR NEW APPROACHES FOR THE DEVELOPMENT OF LOCAL SELF-GOVERNMENT

Specific features of fiscal decentralization as a component of decentralization in Ukraine have been analyzed in this article. It is demonstrated that fiscal decentralization is politically necessary reform for Ukraine, which directly impacts on the formation and implementation of state and regional policy, harmonized actions of central and local authorities, creating a new format of the balance of relationship among the state and local authorities, stabilization and stability of economic processes in Ukraine, efficiency provision of public services, elimination of macroeconomic instability and acceleration of economic growth. The ways of improving this process are outlined. Although the process of fiscal decentralization in Ukraine has not been completed it is concluded about its inefficiency that leads to nsufficient effectiveness of reforming the budgetary and tax system, inter-budgetary relations and decorativeness of most measures implemented in the direction of fiscal decentralization. It has been noted that the process of fiscal decentralization in Ukraine should have its implementation strategy, which can determine the main points, can analyze the problems and can search for possible solutions or the ways of mitigation. Key points of such a strategy should be: an adequate political and institutional environment, improvement of the administration quality, close relations of local authorities with the population and formation of effective communication channels; strengthening the responsibility of local self-government agencies to the community (local accountability and transparency, reduction of corruption); fight against corruption, the "horizontal" and "vertical" growth of the budget competition; ensuring the financial independence of local self-government agencies in decisionmaking; stimulating local self-government agencies to increase their own budget potential, establishing proper access for the development of investment activity. It has been emphasized that the existence of concrete steps of implementing fiscal decentralization in Ukraine will help to strengthen local political and institutional capacities.