One of the most important theoretic-practical principles of the public goods reproduction related to the determining of the relationship system between the levels of their coverage to support leveling of the horizontal and vertical imbalances of such goods providing is considered. The purpose is to find out the basic regularities of forming of the fiscal decentralization domestic model as the bottom ground to organize the public goods production and to form the main directions of its improvement in Ukrainian economy. The research is based on the induction and deduction, historical, synthesis and comparative analysis methods. The most important world outlook peculiarities of the fiscal decentralization in the transforming economic system are determined on the basis of spatial organization models of the public goods production, developed by the fiscal federalism theory. In Ukraine the peculiarities of the public goods production at the regional level were estimated by using such indicators as the revenues and expenditures of the local budgets and intergovernmental transferences; characteristics of the development of the national fiscal decentralization model were specified and the Polish experience was analyzed. The indexes of fiscal decentralization were calculated; their dynamics is analyzed for Ukraine and compared with the same indicators for Poland and European Union. According to the fiscal decentralization principles the most significant approaches to increase the public goods production effectiveness in Ukraine have been grounded to propose: moving from the practice of using the soft budget constrains for the subnational government to more hard ones basing on the modification of the approaches to the tax proceeds restructuring between the levels of the public goods productions; promotion of bigger autonomy for the local governments through completing of the responsibility spheres sharing, providing transparency and accountability to the local communities, forming of clear algorithms of the distribution and redistribution of the accumulated budgetary resources and active use of the medium- and long-term budgeting tools.Рубрика: Фінанси і банківська справа 

public goods, reproduction, fiscal decentralization, local budget, region, intergovernmental transferences