Formation of the budgetary potential of regions in the conditions of financial decentralization

Abstract

The theoretical and methodological basis for the formation of regional budgetary potential in the context of financial decentralization has been developed. The factors influencing on the formation of the budgetary potential of the regions of Ukraine have been studied, namely the level of economic development (GRP per capita), the sectoral structure of the economy (share of industry, agriculture, services), the demographic situation (population size and age structure), and the investment attractiveness of the territory. Directions for improving interbudgetary regulation mechanisms have been proposed based on more flexible, differentiated approaches that take into account the real tax potential of territories, the level of their socio-economic development, security risks, and the institutional capacity of local self-government bodies.