THE CURRENT STATE OF THE ORGANIZATION OF INTERBUDGETARY RELATIONS IN UKRAINE

Abstract

The article substantiates the importance of interbudgetary relations for the budgetary provision of territorial communities. The essence of interbudgetary relations is investigated and their components are given according to the Budget Code. The dynamic of own incomes and intergovernmental transport spheres over the past 5 years is analyzed. A comparison was made of the share of interbudgetary transfers in the structure of local budget revenues in Ukraine. The types of grants and subventions provided from the budget to local budgets are considered. Their sums are analyzed. The largest interbudgetary transfers have been determined. The dependence of different levels of local self-government on transfers from the state budget in the exercise of their powers is considered. It is noted that the introduction of some new interbudgetary transfers is a feature of interbudgetary relations in 2023. In particular, it is proposed to provide for an additional subsidy for the exercise of the powers of local governments in the de-occupied, temporarily occupied and other territories of Ukraine that have been adversely affected due to the full-scale aggression of the Russian Federation. Also, for 2023, for the first time, more than ten new subventions are provided. The amounts and structure of transfers from the state budget to local budgets in 2023 are analyzed. It is concluded that intergovernmental transfers are of great practical importance, but further reform is needed to improve their effectiveness. In particular, the population of the community needs to be constantly updated, taking into account the number of internally displaced persons. The horizontal equalization formula needs to be improved, in particular the ability to take into account all (or most) tax revenues, since there are communities that have resources and at the same time receive an equalization grant.