Abstract. Pre-condition of increase of efficiency of budgetary process at local level is decentralization of power, optimum distributing of plenary powers and legislative settlement of questions, in the field of forming of the self-sufficient proper capital base. Sharing the looks of leading research workers of economists and practical workers, we will mark that one of important pre-conditions of increase of efficiency of budgetary process at local level in the conditions of financial

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... zation is creation of effective capital base, capable enough to provide implementation of both own and delegated, plenary powers.For effective control of such it is necessary to use a wide range of tools that involve the use of variousmarketing tools, primarily to enhance the image of appropriate administrative units which lead to a gradual influx of investment that will ensure the economic well-being of the respective territories. This, in turn, will determine a sufficient capital base to increase the efficiency of the budget process at the local level in the transformation of inter-budgetary relations.In the process of developing the areas of financial support of local budgets, it is necessary to take a set of measures to inform about the prospects of doing business, the corresponding development of business zones, the establishment of cooperation, et al. As positive experience shows, more attractive for investment are territories where efforts of the proper organs of local self-government are oriented on solution of the complex decision of problems of local value, in particular such as complex development of infrastructure, improvement of terms of dwelling, assistance realization of economic activity; a significant increase in the level of competitiveness of economic entities, etc.The pre-condition for the increase of efficiency of budgetary process at local level in the conditions of financial decentralization is determination of level of attractiveness of territorial formations witha purpose of bringing in investment resources, which will contribute to expansion of different types of activity, placing new enterprises on different territories, providing of increase of level of employment of local population, rational and effective use of factors of production, which will provide growth of gross regional product, growth of welfare, and bring investments in a social sphere.