Decentralisation: Exploring Challenges, Opportunities, and Its Role in Strengthening Local Governance

Introduction: The topic of decentralisation is highly relevant in public administration reform, as it contributes to increasing the autonomy of local communities and the efficiency of management processes. The importance of decentralisation reforms is significantly growing in the context of ensuring the financial independence of territorial communities and expanding their participation in decision-making. Objectives: The study aims to analyse the impact of decentralisation on the development of local self-government, the object of which is the territorial communities of Ukraine. Methods: The research methodology is based on quantitative and qualitative analysis, international experience comparison, statistical data analysis, and sociological surveys. Results: The study results show that decentralisation strengthens communities' financial autonomy, improving management efficiency and transparency. The study found a positive trend in the share of local budgets in the consolidated budget, which indicates that communities are becoming more financially capable. At the same time, several challenges have been identified, including uneven distribution of resources and insufficient competence of local managers. Conclusions: The study's practical significance is to formulate recommendations for improving decentralisation processes, including the development of financial equalisation mechanisms, managerial training, and the introduction of digital technologies. The results can be used to improve the efficiency of local self-government and develop policies for sustainable community development.