The system of budget decentralization risks in Ukraine is defined. Major problems of budget decentralization are outlined as following: unbalance of local budgets’ income and expenses due to the lack of sources to cover the liabilities transferred to the local budgets; absence of social standards and criteria on liabilities set and delegated by the state to local self-governing bodies in descriptive and value terms; violation of social justice principle in terms of repayment of privileges approved by Verhovna Rada of Ukraine; initiative on elimination of excise tax on retail trade in excisable goods; unfinished process of territorial communities combining stipulates additional burden in terms of budget system balancing. The ways to improve the mechanisms of budget regulation for maintenance of further accomplishment of budget decentralization reform’s tasks and achievement of its goal are suggested. The major directions are: development of state social standards; maintenance of correspondence between local budgets’ financial resources and the delegated liabilities; assurance of social privileges targeting; improvement of local taxes and fees efficiency; maintenance of inter-budgetary relations efficiency; solution of the issues on debt repayment of State Budget on Privileges and Subsidies; assurance of sectoral decentralization in the health care sphere; maintenance of sectoral decentralization in the educational sphere; provision of budget costs’ efficient management. 

budget decentralization, expenses, income, local budgets, local self-governing bodies