Practice and prospects of local economic development

Abstract

Local economic development issues are increasingly important to communities. With budget decentralization and local government reform, they have been given more resources and more authority to manage them, and now have to take the issue of their further development, identify opportunities and areas of focus, as they provide citizens with adequate services, jobs, social assistance, wellbeing and good roads possible for economically developed, capable communities. The article clarifies the essence of the state policy of development of territorial communities, defines the basic approaches to its implementation, substantiates the necessity of streamlining relevant tasks between different levels of public administration and improvement of specific mechanisms, which in the conditions of decentralization will provide communities with more rights regarding economic development of territories, will improve the quality of public services provision. It is determined that local economic development will be facilitated; ensuring the completeness of the state budget delegation of powers delegated by the state, the implementation of which is vested in local self-government bodies; maintaining existing sources of replenishment of local budgets and preventing the removal of stable sources of revenue; increasing the investment component of local budgets, in particular by increasing the number and quality of sources of revenues to the development budget; reduction of the share of intergovernmental transfers in local budget revenues while increasing own resources.