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Given the reform of state policy in the field of culture and the implementation of sustainable development strategy in Ukraine, there is a need to analyse the state of budgetary providing in this area in the regional context. The purpose is to determine the peculiarities of state budgeting of the cultural sphere at subnational level and to substantiate practical recommendations for improving its financing in the context of implementing the strategy of sustainable development of the Ukrainian economy. Such scientific and methodological tools as induction and deduction, comparison, synthesis, factor analysis by the method of principal components and econometric modelling are used. In 2003—2018, the tendencies of changes of local budgets expenditures on the sphere of culture in Ukraine are estimated. The author has determined that the dynamics of local budget expenditures on culture and art was fluctuating, but due to the implementation of the strategy of sustainable development «Ukraine — 2020» recorded weak positive changes in approaches to budgetary providing in this sphere at the regional level. A comparative analysis of the state of this sphere financing from local budgets in Ukraine and EU countries was carried out, it is identified that in our country the expenditures of local budgets on this sphere are lower than in these countries. The following scientific approach to the assessment of trends in budget funding for cultural sphere at the subnational level is proposed: specification of the main factors influencing the amount of local budget expenditures on culture and art by region; caring out factor analysis by the method of principal components for structuring factors and their ranking by regions; finding a sample regression function to determine the peculiarities of the influence of the studied factors on the expenditures of local budgets on culture and art in the regions of Ukraine. It is substantiated that the improvement of budgetary financing of cultural sphere of Ukraine at the subnational level is based on a clear definition of approaches to the allocation of budgetary resources to this sphere, related to strengthening the fiscal capacity of local budgets, measures concerning stimulation of business activity and improvement of socio-demographic situation.

EVALUATION OF THE CULTURAL SPHERE BUDGETARY FINANCING AT THE SUBNATIONAL LEVEL IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT IN UKRAINE