PECULIARITIES OF FORMING THE BUDGETARY POTENTIAL OF THE REGION: UKRAINIAN EXPERIENCE AND FOREIGN PRACTICE

Building a region's fiscal capacity is an important aspect of regional development that determines the ability of local governments to ensure financial stability and efficient resource management. This article discusses the peculiarities of building the budgetary potential on the example of Ukraine, in particular, analyzes the impact of decentralization, tax policy and intergovernmental transfers on the financial capacity of regions. At the same time, a comparative analysis with foreign practice, including the experience of the European Union and other developed countries, is carried out. The main features of this process are considered, including the impact of decentralization, tax policy, intergovernmental transfers and investment activity. The author analyzes how these factors contribute to strengthening or, conversely, weakening the budgetary potential of the regions. Particular attention is paid to the problems and challenges faced by the regions in the current economic realities of Ukraine. Based on foreign experience, the author offers recommendations for optimizing the formation of budgetary potential, including measures to improve tax administration, increase the financial autonomy of local authorities and stimulate investment. Special attention is paid to the problems and challenges faced by local authorities in implementing decentralization reforms. Based on foreign experience, the author offers recommendations for optimizing the mechanisms of budgetary regulation, including measures to improve tax administration, increase transparency and accountability of the budget process, and stimulate local economic development.