Fiscal Decentralization in Ukraine as Important Part of Reforms of Public Administration and Public Finance

In the circumstances of growing economic tension and deepening the debt crisis in developed economies the question of efficiency of public finances at the all levels of government comes to the forefront of economic interests again. While the problems of managing the central government budgets have devoted a lot of attention, the issue of local and regional budgets remains unsolved. The article highlights the main shortcomings of the system of local finance in Ukraine in recent years, and analyses changes in the basic rules of financial and budget management presented by the amendments to the budget and tax legislation designed to extend the competence of local authorities in the field of formation and distribution of financial resources at the local level in order to realize the concept of fiscal decentralization in Ukraine.