It has been studied that the performance indicators of local budgets reflect the general socio-economic condition of the respective territory and its potential for sustainable development. After the decentralization reform, territorial communities received additional financial resources. It was determined that the availability of sufficient resources in local budgets is a guarantee that the territorial community has the opportunity to provide better and more diverse services to its residents, implement social and infrastructure projects, create conditions for the development of entrepreneurship, attract investment capital, develop local development programs and finance other measures to comprehensively improve the living conditions of community residents. It is noted that an important reform in terms of decentralization is land decentralization, since land is a resource that can be used by territorial communities to increase budget revenues. was determined that modern local development is a process of intellectual change of the local management system of the territorial community, the existence of a direct connection between the sustainable development of the territorial community and the region. The main tasks for territorial communities in the process of managing the sustainable development of the region are revealed.