The article observes specific features of formation of united local communities in Ukraine according to the principle of economic efficiency. Influence of amount of population and area of united territorial community on its financial situation and ability to perform its functions is analyzed. Main features of management and administrative staff of united communities of all volumes are established. It is defined inversely proportional dependence between the level of expenditures per pupil and volume of the community. It means that expenses on pupils at small communities are greater than at big communities. It is proposed a matrix to determine optimal parameters for united municipalities formation. The basic actions that state should realize for effective implementation of the reform of fiscal decentralization are defined. It is proved that formation of united local communities, that can be characterized with optimal features, which are defined at the article, will facilitate effective development of communities and provision of quality public services to their residents. 

competent local communities, reform of administrative and territorial structure, financial independence, local budget expenditures, economic capacity 

The main obstacles to achieve efficiency in financial provision of local communities development namely the discrepancy in the revenue base of local budgets and assigned goals to improve their financial capacity; lack of incentives for efficient use their own financial capacity; differentiation of local communities in terms of budgetary provision; vertical and horizontal imbalances in local budgets in the region; negligible expenditures of local budgets on development of territories; imperfect mechanism of payments of the State Treasury budget that are carried out ??by local authorities.

The structure of revenues of local budgets of Lviv Oblast, in 2001-2013 рр. is investigated. Conclusions are done that paternalistic expectations at the local level are caused by the application of the principle of «according to needs» while targeting state transfers for financing the existing network of budgetary institutions without estimation of expediency and effectiveness of social functioningas well as lack of real impact of local government on tax base, rates, rules of administration, that are defined at the central level.

The basic concepts of financial sustainability of local communities are defined, which include: strengthening the financial independence of local communities and regions of local budgets; rejection of the paternalistic model of relations between the center and the regions and stimulation of an effective use their own financial capacity of local communities; ensure the effectiveness of intergovernmental relations; increase of the volume of investment-related expenditure.

Steps proposed by Government of Ukraine regarding changes in tax system and intergovernmental relations aimed at decentralization of public finances are considered. The necessity of achieving financial capacity of local communities that will ensure the transfer of basic weight of management process on the local level is explained. The volume of increase of non-budgetary financial resources that will affect the increase of investment activity of local community is proposed. Was determined that the achievement of financial independence is impossible without transformation of local communities to the beneficial owners of public property, including forests and lands. Priorities for Parliament, which will create the foundation for of more qualitative and development planning are identified. 

financial support of local communities, administrative-territorial reform, intergovernmental transfers, decentralization, local finances 

The authors of this paper research the opportunities for improving the mechanism of financial potential for development of Ukrainian rural communities. They also analyze problems of providing rural territorial communities with theirs development in case of differentiation of rural territorial formations on the basis of cultural and socio-economic development of appropriate territorial communities considering geographic location, endogenous and exogenous relations. 

rural territorial communities, mechanism of financial providing of rural territorial communities development, self-taxation, impact factors of development of rural community, policy of rural development