INFLUENCE OF INSTITUTIONAL CHANGES ON THE FISCAL IMPROVEMENT OF REGIONAL SUBJECTS DEVELOPMENT

The article analyzes the influence of institutional changes on the fiscal stimulation of the development of regional actors. It is sub - stantiated that the issue of fiscal stimulation requires a thorough theoretical reflection in order to develop effective mechanisms for its practical application in the context of the institutional changes taking place in Ukraine today. The practice of public administration in the progressive countries of the world proves the high efficiency of using fiscal incentives as a tool for the development of individual regions. Fiscal incentives enable the regulator to rank quality approach to tax incentives under the object form, the economic nature of the phe - nomenon or process exerted influence. Fiscal stimulus can be implemented in various directions, including in the budgetary aspect, which most often takes the form of intergovernmental transfers or redistribution of expenditures between budgets of different levels, along with providing them with an adequate amount of money resources. It has been proved that the power decentralization allows the central authorities to delegate part of the function to the regional and local levels. The main condition for effective decentralization and transfer of budget powers at lower levels is an adequate assessment of the potential risks of implementing such a system, which should be reflected in the full observance of the declared goals, the provision of local budgets with the necessary level of financial resources for the implementation of the delegated powers, the formation of a balanced budget process for the purpose of security from the occurrence of regional imbalances in the context of financial security. As a result of the study, it has been proved that the budget component aimed at increasing the effectiveness of fiscal motivated regional development is a decentralization process of that provides a more efficient mechanism for allocating budget funds through awareness of local level needs that can be met by redistributing budget funding.