In this article the rating of the budget provision of Ukrainian regions has been evaluated basing on the calculation of Euclidean distances and grouping of indicators by budget status and balance, intergovernmental cooperation, budget stability and debt load. Using of the cluster analysis allows us to classify regions by integral indicator of budgetary provision into crisis, low, medium and high level. The analysis shows uneven budget distribution and confirms the need and timeliness of fiscal decentralization. The attention is on the first results of the reform of fiscal decentralization. It is shown that with the new changes to the Tax and Budget Codes financial stability of local budgets was strengthened, resulting in the growth of budget support demonstrated by almost all regions of Ukraine. It is proved that a high proportion of social spending in the minimum capital is not able to ensure economic growth in the region. The implementation of budgetary policy should be based on unleashing the potential of the regions, considering the fundamental principles of fiscal decentralization, especially in the empowerment of local governments to accumulation and effective use of development resources. The existence of certain patterns of implementation and budgetary policy of Ukrainian regions, caused by the influence of factors of exogenous and endogenous nature, has been highlighted. 

region, evaluation, budget provision, taxonomy method, Euclidean distance 

Current economic situation in Ukraine is represented by significant asymmetry both in regional development and in budget resources availability. Therefore, maintenance of financial autonomy that directly depends on the level of local budgets revenues’ mobilization and their efficient use is one of the key problems of Ukrainian regions’ development. In this context the necessity of introduction of objective evaluation of self-sufficiency, balance and sustainability level of budget systems becomes of utmost importance. On this basis the feasibility of local government bodies’ budget policy can be considered.
The article aims to improve methodical instruments of analytical basis evaluation and forming in order to percept objective reality of region’s budget system functioning taking into account the key influence factors that change its development and in order to obtain available information on the goals and priorities of budget policy.
The article analyzes existing approaches to evaluation of region’s budget maintenance. The author pays special attention to the absence of distinct limits in the system of evaluation of «region’s financial condition», «region’s budget maintenance» and «region’s budget potential» as well as to the insufficient system of indicators that characterize the balance and sustainability of budget relations in the regions. On the basis of critical analysis and generalization the author proposes improvement of methodical approaches to evaluation of regions’ budget maintenance based on the method of comparative complex evaluation – Euclidean distances and grouping of indicators by separate evaluation directions, in particular: condition and balance of budget, inter-budget interaction, budget sustainability and debt burden (for the budgets of cities). It is stressed that individual indicators should be formed taking into account the following requirements: indicators of every group should represent certain (one) characteristics of the object under examination; close correlation links between the indicators should be observed within the group; instead, correlation links between indicators of different groups should be low. The author proves that the proposed approaches to analysis and evaluation of regions’ budget maintenance make it possible to consider the level of budget resources provision and possibilities of their use as well as to reveal budget risks and predict their neutralization measures. Budget analysis with the use of given instruments can be conducted at all levels of budget process and its results will serve as analytical basis in the practice of local self-governmental bodies. 

region, evaluation, budget maintenance, taxonomy method, Euclidean distance 

Transformation processes in the global economy, evolutionary change within countries, and the growth of competitiveness of regions change the nature of the relationship between management entities. In this format the state as a closed economic space activities of subnational entities gradually loses its meaning. At the same time, the importance of regions as actors in the global economy increases significantly. The purpose of this article is to deepen the theoretical and methodological provisions of the regional development in the context of socio-economic transformation. In this article the author describes theoretical approaches to understanding the essence of “region” in terms of territorial, system and management approaches. Classification of regions according to certain classification sign is proposed. the Author’s conclusions and generalizations about own vision of the essence of this term are presented. The author notes: the lack of a uniform approach to definition of essence of concept “region”; the identification of the concepts of “region, regional system, the area” with an emphasis on administrative component; feasibility to consider the region as a field of the structural system with the set of stable relationships between economic entities of the same rank, with the simultaneous existence of the order of the highest rank; enhance domestic economic capacity to ensure own development. The theoretic-methodological basis for regional development in the theoretical and methodological planes is covered. In the article the author describes the laws, principles and factors of regional development. Funding instruments for regional development and the possible institutional support are systematized. The types and models of regional development are selected. The own vision of regional development is formulated, which should be comprehended as the process of accumulation is positive, irreversible, regular changes, which lead to higher living standards in the long term. It is proved that the vector of development of the region should be focused on the reduction of subsidization, the provision of self-development by enhancing internal capabilities. Modern regional development policy should be based on such a paradigm, which would take into account the interests of regions, the achievement of intersectoral cooperation, decentralization of power and balance (budgetary, economic, social, political). 

region, growth, development, regional development, interregional integration, balance 

In the article the existing mechanisms of formation and implementation of the budget of regional development policy were reviewed. Their structural elements are determined and characteristics are presented. The state budget mechanisms of support of regional development which funding sources are state and local budgets. We consider the current problems of finding and accumulation of financial resources in the budget for regional development. The paper emphasis on subventions, state targeted programs, government guarantees and the State Regional Development Fund as a key budget support mechanisms of regional development.

It is proved that for the process of allocating subsidies is inherent «latent management from center», imperfect budget allocation procedure and excessive dispersion of subsidies; implementation of state programs of regional development is accompanied by lack of coordination of sectoral and regional institutions, and the use of funds of the State Regional Development Fund contains a number of shortcomings.

A number of recommendations on optimization of existing and search potential sources of the financial resources to ensure regional development is formulated. Thus, in the direction of improvement of the procedure of formation of funds of the State Regional Development Fund is advisable to establish an indicative amount of fund in policy documents of the government in the medium term with restraint adjustment of indicators no more than 10%, and the allocation of the fund is appropriate to use the index method of distribution that will ensure transparency of the procedure. In order to facilitate the flow of financial resources to the regions it is advisable to initiate the introduction of competitive selection procedure of proposals from local communities to obtain subsidies for social and economic development.

Prospects for further research in this area is the question of fiscal decentralization,   analytical research of budget mechanisms of regional development, which funding sources are local budgets. 

budget mechanisms, regional development, state budget, local budgets, grants, targeted programs 

Modern trends formation of local budgets by the example of Lviv region have been analyzed. The composition and structure of its own financial resources of the consolidated budget of the region have been investigated. The peculiarities of providing local budgets in Lviv region own income have been established. The problem formation of local budgets in Lviv region have been highlighted and possible directions of improving processes of increasing their own revenue base have been suggested. 

local budgets, financial capability, local government, local budget revenues 

The analysis of the state and trends of the budget maintenance of Carpathian region development has been conducted. The features that form the budget of the problematic region have been defined and the dynamics of the indicators has been analyzed. The problems of forming of own financial resources of administrative units have been outlined and the directions of problems solutions have been proposed. 

budget, maintenance, Carpathian region, financial resources, intergovernmental transfers 

The theoretical approaches to creation and use of financial potential of the region’s real economy have been presented. The concept “financial capacity” has been analyzed. The understanding of the “financial potential of the real economy of region” and its structural elements from the author’s point of view has been proposed. The expediency of application of the value added indicators of the enterprise as efficiency criteria of their financial capacity use has been justified 

formation, use, potential, financial potential, the real sector, region, efficiency