STATE POLICY ON THE FORMATION OF LOCAL INCOMES IN THE CONTEXT OF SOCIO-ECONOMIC DEVELOPMENT OF REGIONS

Abstract

The proposed article revealed that the state policy on the distribution of local income in the context of socioeconomic development of the regions needs revision and changes. In particular, this is caused by the existing situation of biased and disproportionate distribution of additional subsidies for the implementation of expenses transferred from the state budget for the maintenance of educational and health care institutions. Currently, the problem is exacerbated due to the burden on the maintenance of educational and health care institutions due to the forced internal displacement of the population, especially in cities. And although the decentralization reform has given local authorities significant financial autonomy, the indicated shortcomings of state policy exist and can be solved by introducing legislative changes taking into account the proportion of distribution; population numbers; revenue receipts of local budgets for the corresponding reporting period of the year preceding the planned one; of the reduced index of the relative tax capacity of the consolidated budget of the territorial community. Objective. The purpose of this article is to analyze the state policy regarding the formation of local revenues in the context of the socio-economic development of regions. Methodology. This article pays special attention to the analysis of aspects of state policy aimed at shaping the revenues of local budgets to achieve strategic development goals and enhance the economic potential of regions. Scientific novelty. It has been demonstrated that the pressing issue in regional development is the effective formation of local budget revenues. Ensuring the revenue side of the budget is impossible without the implementation of state policy regarding the proportionality and justification of interbudgetary relations. Conclusions. It is noted that local budget revenues play a crucial role in ensuring the viability and development of territorial communities, and therefore their formation should be based on the needs of the regions, taking into account the population size resulting from forced migration. It is established that the formation of the revenue part of the budget and the ability to invest it in development projects are influenced by state policy, which should be oriented towards the proportional distribution of subsidies, support for the most densely populated areas, and consideration of the tax capacity and economic potential of the region.