Economics and Business Management

It has been proved that budget decentralization is becoming an effective system of local finances and an instrument of state regulation of regional development. It encourages regions to become financially independent and entrepreneurial, seeking additional resources for the needs and capabilities of the regions. To date, the main development of a democratic state is to ensure the welfare of every individual. According to the experience of developed European countries, the achievement of this goal is possible only under the conditions of high-quality public administration, which strengthens democratic institutions, eliminates inequities of access to public goods, improves the quality of public services, and improves the standard of living of the population. A priority direction for the development of a democratic state is to ensure the welfare of each individual citizen. In the context of the reform of the public finance system, the tendency towards decentralization in public administration, which results in the transfer of a number of powers to the local level, is relevant. Implementation of budget reform measures in the context of decentralization will contribute to ensuring a stable income base of local budgets, as well as enhancing their financial capacity, transparency, and efficiency of use of budget funds, and effective resolution of issues of socio-economic development of territories. Thus, financial decentralization makes it possible to balance the mechanisms of public service delivery with the needs and preferences of local residents. Population income is a traditional subject of research by scientists, which is related to the direct impact of population income on the socio-economic and political situation in society. This determines the priority direction of the formation of a system of methods and mechanisms of regulation of income of the population of any country

local government; decentralization; budget; local budget; finance; local budget revenues; united territorial communities