Several problems that require detailed consideration and solution in the sphere of local budgets in Ukraine are defined. The necessity of further reforming of the local budgets system of our state is stressed. The program-target method of budgeting as a tool for local budgets reforming in Ukraine is analyzed. The main advantages of this budgeting method implementation are defined. The efficiency of program-target method implementation in local budgets planning in Ukraine is assessed. A set of actions required by implementation of program-target method of budgeting at the local level is outlined. 

local budgets, program-target method, budgeting, budget reform, experiment