THEORETICAL LOGOS OF FISCAL DECENTRALIZATION (Teoretychnyi lohos fiskalnoi detsentralizatsii)

The evolutional aspects of decentralization processes of local finances in Europe, approaches of some foreign and national researchers to the understanding of decentralization as extention of rights and jurisdictions of local authorities in the field of territorial development, have been considered. The essence of 'fiscal decentralization' in the context of working out of budgets of organs of local self-government, taking into account taxes and duties, and also their impact on the development of territories and overcoming of territorial disproportions, has been studied. It has been marked that works of V. Outs and hypothesis of American economist Ch. Tibu on 'feet voting' are of mportance in the sphere of fiscal decentralization. It has been proved that distribution of functions between budgets to a certain extent depends on the political system of the country.