Road infrastructure is one of the strategically important elements of regional development, which facilitates access to public services in remote regions, improving business conditions, realizing the tourist potential of the country, strengthening industrial relations between territories and boosts economic growth and trade development. In the conditions of decentralization, the road management system of Ukraine was reformed. The article reveals the essence of road decentralization in Ukraine and its role for regional development. The reasons for the unsatisfactory transport-operational condition of the overwhelming majority of highways are established. The basic directions of reforming of the mechanism of road economy management in Ukraine and features of financing of repair and construction of highways from the State Road Fund are determined. The distribution of funds from the road fund disproportionate to the length of public roads has been confirmed. The mechanism of financing the road sector of Ukraine according to the current legislation has been constructed. The analysis of volumes and sources of financing the repair of highways of general importance in Lviv region and systems of management of road economy before and after the first stage of decentralization was carried out. The volume of financing of repair and construction works of highways of state importance at the expense of "customs experiment" is analyzed. It was established that the reform of the organizational structure of the management of the road economy and sources of financing allowed increasing the number of funds allocated for repair and maintenance of the network of highways of local importance. However, the lack of a new mechanism for managing highways of local importance at the local level and the state monopoly in the field of maintenance of highways hinders the development of funds and repair and construction works. The directions of the road management system improvement in Ukraine are determined: development of private-public partnership in the field of repair and operation of highways; introduction of independent expert and public control over the quality of repair and construction works of highways; compliance of the norms of the functioning of Ukrainian motor transport and road transport with the requirements of EU legislation.