The article analyzes the domestic experience of implementation of the EU sectoral budget support mechanism in the field of regional policy. In particular, the main directions of the implementation of this mechanism in accordance with the Government approved Regional Development Programs were determined, the legal and regulatory framework for the implementation of sectoral budget support programs in Ukraine was analyzed, the region’s activity in the preparation and submission of projects for the competition under the Sectoral Budget Support Programs in 2017 was analyzed. The main focus is on assessing the structure of projects in terms of quantity, volume of funding and areas of sectoral budget support in 2017 on the basis of Lviv region, since it is the leader in the number of projects submitted and won among all regions of Ukraine. The main problems of implementation of the mechanism, which need improvement, are revealed, with the purpose of greater adaptation and wider possibilities of application for Ukraine. In November 2014, an agreement was signed between the Government of Ukraine and the European Union represented by the European Commission to provide assistance to our country in the form of sectoral budget support for the implementation of the state regional policy, in particular, to support the implementation of the State Strategy for Regional Development. An agreement with the EU to provide Ukraine with financial assistance in the form of sectoral budget support was made possible due to the fact that in August 2014 the Government approved the State Strategy for Regional Development for the period till 2020. In order to ensure the implementation of the State Strategy for Regional Development 2020 in accordance with the project and programming approaches and methods and practices of the EU, the Ministry of Regional Development, Construction and Housing and Communal Services has formed seven Regional Development Programs approved by the Cabinet of Ministers of Ukraine (in accordance with the Action Plan for 2015-2017 on implementation DDR 2020). These Programs have an investment and development orientation. The activities identified in each Program correspond to the operational objectives and specific tasks or set of tasks of the State Strategy for Regional Development 2020, expected results and performance indicators of regional development projects that can be financed by the Program through EU sectoral budget support.