THEORETICAL FOUNDATIONS OF THE FINANCIAL INDEPENDENCE OF LOCAL BUDGETS AND CRITERIA FOR ITS ASSESSMENT

This article examines the theoretical foundations of local budget financial autonomy and the criteria for itsassessment. The study is based on fiscal federalism theory, intergovernmental fiscal relations, and financial decentralizationapproaches to define the economic essence of local budget autonomy. Drawing on the works of Oates, Musgrave, Shah,and OECD indicators, the key evaluation criteria are systematized.The author proposes a comprehensive assessment model integrating revenue independence, tax authority, expenditurediscretion, and transfer dependency. The findings provide a theoretical framework for improving fiscal policy andstrengthening regional financial sustainability.