STRATEGY FOR INCREASE IN REVENUES TO LOCAL BUDGETS

Abstract

Fulfillment by the state of its functions, maintaining the economic stability of the country, continuous socio-economic development of individual territories is impossible without the availability of an appropriate financial base, the basis of which is budget revenues. In order to ensure the powers of local self-government bodies with sufficient sources of financing, the issue of revenue formation of local budgets requires a sound scientific understanding and a practical solution. The modern stage of the development of inter-budgetary relations is characterized by increased attention to the problem of strengthening the revenue base of municipalities in order to ensure self-sufficiency of local authorities and obtain the necessary amount of public goods for residents of the territories. With an effective policy in the field of planning budget revenues and mobilization of revenues to municipal budgets, investment opportunities, the quality of life of the population, and labor productivity increase. The purpose of the article is aimed at analyzing the problem of filling local budgets in Ukraine. Article is to highlight the results of an analytical review of the problem of filling local budgets in Ukraine. The article argues for the need to increase the share of personal income tax in the revenue sources of local budgets of the least resource-provided territorial communities as a financial basis for their sustainable development. Population size, the level of average wages, the amount of income to the local budget, and the standards of deductions to local budgets were considered as the main factors influencing its income. The potential opportunities for increasing revenues from this tax due to amendments to the legislation, improving the quality of life of the population, the attractiveness of the territory for business and the efficiency of its administration have been systematized. Based on analytical data, the article identifies the main problems of filling the revenue base of local budgets, and also defines the main directions and ways of strengthening it. The conclusion emphasizes: in order to fill the revenues of local budgets, it is advisable to review the possibilities of tax revenues, non-tax revenues, taking into account their structural components. After all, they also have the potential for growth. In particular, the property tax can also become a driver of sustainable community development. Also, increasing the efficiency of administration of local budget revenues also serves as the basis of a high tax culture and prevention of tax offenses.