Improving the Cost-Efficiency of Local Budgets in Today’s Environment

The article is aimed at analyzing the expenses of local budgets, their dynamics and specificity in the consolidated budget and developing recommendations to improve their efficiency in the modern conditions of financial decentralization. The necessity of increase of efficiency of expenses of local budgets is substantiated, an analysis of dynamics of their expenses is carried out and their specific weight in expenses of the Consolidated budget of Ukraine is analyzed according to each kind of budget expenditures depending on functions. The structure of expenditures of local budgets is also analyzed and priority directions of expenditure of the funds are defined, which are education, health care, and social protection of the population. It is specified that expenditure policy should play a key role in the conduct of the financial activities of the State. It is proposed to improve the system of the State financial and public control, to direct budget funds for the financing of actors in the production sector in order to stimulate the receipt of additional own income of local budgets