The problems of existing structure of local self-government expenses liabilities in Ukraine are examined. The conceptual approaches to reformation of distributing of expenses liabilities between authorities are offered. Basic directions of reformation: increase of efficiency of local and regional financial resources use; increase of devolutions degree; maximally possible attraction of population into the process of making decision on local and regional affairs. An author proves that amount of external users, significance level for a country and territories and also possibility of economy on scales of production determine the level of authority, which is most efficient in providing public benefits to population. 

benefits, local self-government, expenses liabilities, local budgets, expenses, territorial finances