Subject of research is the state budget and local budgets of Ukraine. The goal of this research paper is to analyze the performance of state and local budgets of Ukraine. Methods which were used in course of research: generalization, comparative analysis method, statistical method and other methods. Study results. Analyzed income and expenses state and local budgets of Ukraine, inter-budget transfers. Application of results: Ministry of Finance of Ukraine, the Verkhovna Rada of Ukraine. Conclusions. The budget is a regulator of the economy, which reflects the volume of necessary state financial resources, determining the specific areas of use of funds, directs the financial activities of the state. Inefficient use of budgetary funds is a national problem. Ensuring effective use of budget funds will contribute to the stability of the financial system of the state, will be the key to expanded reproduction, a positive effect on quantitative and qualitative indicators of the economic life of the country
