Annotation: The article considered the main advantages and disadvantages of the local decentralization. Also has been researched the foreign experience of constructing budget decentralization. Proposed the possible measures to improve decentralization of Ukraine. Decentralization is the transfer of budget powers from state authorities to local self-government bodies. Also has been investigated the term of «united territorial communities» wich are a territorial communities that, as a result of a voluntary association that can independently or through appropriate local self-government bodies provide the appropriate level of services, in particular in the field of education, culture, health care, social protection.