Unit 44 local finance

Local finance is a system of economic relations, where national income are distributed and redistributed for economic and social development area.

Effective functioning of local government is associated with performing the assigned and delegated functions Among them - ensuring the public interest and needs at the local level, promoting social and economic development areas. Fulfillment of mentioned tasks requires the relevant financial resources.

According to the definition of O. D. Vasylyk "local finances is a set of forms and methods of creating funds of financial resources for carrying out the functions in the field of economic and social development by local authorities

Functions of Local Finance
Distribution and redistribution of GDP	Formation of fiscal policy at the local level	Funding of public services	Economic growth areas

In Ukraine, forms of local finance are finance of local community (public finance), finance of Autonomous Republic of Crimea, regional finance, finance cities of Kyiv and Sebastopol city finances, finance of district, region, in the city, village finances.

The main subject of local finance in Ukraine is the local community and local government. In other countries the main subjects of financial relations in the field of local finance is the municipalities, communes, regions, departments, provinces, regions, districts and other administrative-territorial units.

The objects of local finance are the financial resources used by local authorities to carry out the functions and tasks.

The main financial funds of local government are: the local budgets, reserve, currency and off-budget trust funds, funds of cash resources, utilities and others. Local authorities can also make financial resources by obtaining bank loans, issuing of municipal loans

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