Economic basis local government consists of municipally owned property, local budget funds, as well as property rights of municipalities. Municipal property is recognized and protected by the state on an equal basis with other forms of property.

Municipal entities may own:

Property intended to resolve issues of local significance established by Federal Law;

Property intended for the implementation of certain state powers transferred to local governments, in cases established by federal laws and laws of constituent entities of the Russian Federation;

Property intended to support the activities of local governments and officials local government, municipal employees, employees of municipal enterprises and institutions in accordance with the regulatory legal acts of the representative body municipality;

Property necessary for the exercise of powers, the right to exercise which is granted to local governments by federal laws. Municipal governing bodies are vested with property rights.

The effectiveness of the functioning of the local self-government mechanism is primarily determined by its financial and economic capabilities. The concept of “financial and economic opportunities” is multifaceted, encompassing a lot of problems that are different in nature, degree of significance and possibility of solving problems.

The parameters of economic activity at the local government level include: the basic principles of organizing local finances, sources of formation and directions for using financial resources of local government, the basics of financial and budget planning in municipalities; relationships between local governments and financial institutions government bodies, enterprises, guarantees of the financial rights of local governments and their responsibility for the implementation financial obligations.

The financial and economic basis of local self-government consists of municipal property, including land resources, the local budget and other local financial and other resources generated and used in the interests of the population of municipalities. The state of the financial and economic basis of local self-government is largely determined by the state of the economy: the state as a whole, its finances. Recognition and guarantee by the state of local self-government presupposes that the state assumes certain obligations to create economic, financial and other conditions necessary for the development of local self-government.

The European Charter of Local Self-Government enshrines in Article 9 the general principles of organizing the financial and economic independence of local governments: local governments have the right, within the framework of national economic policy, to have sufficient own financial resources that they can dispose of in the performance of their functions; financial resources must be proportionate to the powers granted to them by the constitution or law, part financial resources should be formed from local fees and taxes, the rates of which local governments have the right to set within the limits determined by law, financial systems must be sufficiently diverse and flexible to follow changes in costs arising in the exercise of the competence of local authorities. Protecting financially weaker local governments requires financial equalization procedures or equivalent measures to correct the uneven distribution of potential local government funding sources and their costs. Such measures should not limit the freedom of choice of local governments within the limits of their competence.

These provisions should determine the financial and tax policy of a democratic state in relation to local authorities, being reflected in the legislation of a given country.

Until the 90s in the twentieth century in Russia, the subject of economic development of the territory (including cities, towns, villages...) was only the state. Nowadays, in the existing economic relations in the territory of municipalities, especially cities and large districts, the participation of both the state and enterprises of various forms of ownership is required. However, the justification and forecast of the socio-economic development of a municipality, control over the development process and responsibility for its results are the right and responsibility of local governments of a particular territory. These structures (state, local government, subjects of economic and other activities) form control system municipality.

Economic management is a purposeful, streamlining influence on the processes of economic activity of all economic entities. Its results largely depend on property relations, labor cooperation, the market system and government regulation economy. The main figure in management is a person, a leader. The quality of management activities and, consequently, the final results of the process depend on his experience, knowledge, and qualifications.

The main goal of municipal government bodies is the effective use of all available resources and their attraction to the territory, which makes it possible to more effectively solve the problem of creating favorable living conditions for the population.

But the economic development of a specific territory cannot be isolated. It is largely and essentially defined as economic system country, and the economic management system existing in a particular period of history.

Planning is the central link in economic management in pre-perestroika times. Before perestroika times, the main levers of social control were economic processes was planned farming.

TO positive aspects planned economy should include: the ability to significantly concentrate resources, high maneuverability, speed of action of orders, the possibility of macroeconomic planning and forecasting, etc. Economic conditions favorable for the manifestation of these advantages: the relative simplicity of the production structure, the predominance of the extensive type of economic growth, a relatively short period during which the enthusiasm generated by the socialist idea and acting as an incentive to work lasts.

Nationalization of the economy justifies itself mainly in emergency circumstances; it is capable of quickly concentrating material and human resources in decisive areas of the economy. However, command methods do not meet the tasks of peaceful economic construction.

Efficiency and mobility market economy are based on the fact that with free enterprise, competitive interaction of supply and demand, satisfying demand with adequate supply leads to an increase in prices for scarce goods and services. In a competitive economy, this leads to increased production of related goods and services. If there is no competitive environment, then it is more profitable for monopolistic enterprises to raise prices for goods and services rather than expand their production.

There are other factors that hinder the expansion of production and supply, in particular, the lack of reserve capacity, new technologies, free Money. The modern market system is a combination of different forms of entrepreneurial activity and government regulation.

In the new conditions, the functions of local authorities have also changed significantly. For example, planning has been supplemented with such a function as forecasting.

Many municipalities (especially cities) have begun developing strategic economic development plans. The goal of urban economic development is to create conditions for high-quality (decent) living for residents in the municipality. This is, first of all: the opportunity to find a job; receive a range of services that allow you to maximally satisfy your life needs. To achieve these goals, a number of tasks need to be solved:

1. Ensuring the functioning of city enterprises that will provide employment to city residents and create a stable tax base.

2. Ensuring the efficient use of urban resources (financial resources, real estate, land resources) of the municipality.

Today in Russia there is interest in the problem of economic development of cities. Russian cities that are actively working in the field of local economic policy have already realized the need to adopt documents that determine the possibilities of the future city, set guidelines for city leadership and other organizations located in the economic space of the city.

The development of strategic plans and projects is the most modern method of local management, which is capable of solving development problems and promoting cities to the forefront in the face of growing competition for investment resources and attracting the latest advanced industries.

Strategic planning, a strategy for sustainable development, is the first step towards a stable economic state. But it is more important to implement the developed plan and maintain the competitiveness of the territory for a long period.

Each municipality determines the structure of the body responsible for economic development its territory. These may be departments, managements, committees, departments, specialists in financial or other departments. But the main management functions of these structures are typical: analysis, forecast, development of programs, their implementation, transfer of experience, work with enterprises, etc.

Let's consider an example of managing the economic development of a city with a population of 300 to 600 thousand people. Its structure is presented in the diagram.

The main objectives of economic development management are:

Formation and implementation of economic policy aimed at the comprehensive socio-economic development of the city.

Determining the forms and methods of influencing the city’s economy, ensuring the effective use of the production and scientific potential, labor, material and financial resources of the city in order to improve the standard of living of the city’s population.

Formation of a favorable investment climate in the city.

Organization of work on the formation and execution of municipal orders within the framework of current legislation.

Improving the organization of labor, forms and systems of remuneration for employees of the administration and its structural divisions.

Formation of a development plan for the municipal sector of the economy.

But it is necessary to manage not only the development of the economy, but also those everyday economic processes that take place in the municipality.

Management (department) of economics of the municipality

Wide circle economic problems, decided by local governments, the implementation of municipal economic policy requires the creation of appropriate organizational structures. In recent years, to perform new economic functions in local administrations, new organizational structures have appeared: for property management, land resources, for investment policy, for tax, price and tariff policies, but for work with industrial and business structures, for municipal orders, for treasury execution budget, external economic ties etc. Less common are new structures such as a strategic development service, a unified real estate management service, and structural divisions responsible for attracting and effectively using borrowed funds. These new units must somehow be combined with the previous organizational structures of the administrations.

In connection with the development of market infrastructure on the territory of municipalities, financial and economic institutions of various forms of ownership arise, such as banks, insurance companies, pension funds, leasing companies, mortgage funds, auditing, consulting firms, etc., interaction with which for the local administration is necessary.

The functioning within and outside the administration of many different (including new) organizational structures, one way or another influencing the formation of municipal economic policy, raised the question of who is responsible for this policy as a whole, ensuring its coordination, focus and effectiveness.

From the variety of existing structures of local administrations and methods of coordinating the economic policy of a municipality, four basic schemes can be distinguished.

Decentralized. The economic planning service, financial service, property management, investment management, work with industry and entrepreneurs are structural divisions independent from each other and are subordinate directly to the head of the administration and his various deputies. The role of economic policy coordinator inevitably falls on the head of the administration.

Basically decentralized, with a strengthened committee (management, department) of the economy. Some additional functions are transferred to the latter’s jurisdiction: investment policy, work with entrepreneurship, consumer market and so on.

Partially centralized at the level of Deputy Head of Administration for Economics with coordinating functions. He is in charge of issues related to the economy, industry, etc., and sometimes the entire block of issues related to the long-term development of a municipality, land use, and interaction with banking and other commercial structures. But property management and the financial authority of local government are not transferred to this deputy.

Completely centralized - the first deputy head of the administration manages the entire economic bloc, including economics, finance and real estate.

Most municipalities use the second and third of these schemes in various modifications. However, a fully centralized scheme for managing the economic bloc seems to be the most rational, since this scheme creates the best conditions for systemic planning and coordination of economic policy in the municipality, including:

The target orientation of the municipal economy to improve the quality and efficiency of the provision of municipal services to the population;

Allocation of all resources of the territory to solve this problem, including municipal property and resources of economic entities;

Providing support for the non-municipal sector of the economy;

Linking economic and financial planning;

Linking the solution of current and future problems.

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Economic basis of local government

The economic basis of local self-government consists of municipally owned property and local budget funds. Municipal property is the main component of the economic basis of local government.

In accordance with Article 8 of the Constitution of the Russian Federation, municipal property is recognized and subject to equal legal protection on a par with other forms of property. Municipal property means property owned by right of ownership to citizens, rural settlements, as well as other municipalities (Article 215 Civil Code RF).

Municipal property includes municipal property, including municipal lands and other Natural resources, property of municipal enterprises and institutions, funds from local budgets, other movable and immovable property necessary for the exercise of powers of local governments.

Local government bodies independently dispose and manage municipal property. They have the right to transfer objects of municipal property for temporary or permanent use to individuals and legal entities, government bodies, lease, alienate in the prescribed manner, as well as make other transactions with property in municipal ownership, determine the conditions of use in contracts and agreements objects being privatized or transferred for use.

The Constitution of the Russian Federation established the right of local self-government bodies to independently form, approve and execute the local budget, the duties of public authorities, when vesting municipal bodies with certain state powers, to transfer the material and financial resources necessary for their implementation, as well as to compensate them for additional expenses as a result of decisions of public authorities, entailing the expenditure of local finances. These provisions of the Constitution of the Russian Federation were developed in the federal laws “On the general principles of organizing local self-government in the Russian Federation”, “On financial fundamentals akh local government in the Russian Federation”, in the Tax and Budget Codes of the Russian Federation.

Each municipality has its own budget. The local budget consists of revenue and expenditure parts. Federal laws and laws of the constituent entities of the Russian Federation provide for the formation of the revenue side of local budgets through both tax and non-tax payments. Tax revenues have the largest share in the revenue parts of the budgets of municipalities, among which local taxes and fees play the main role. The list of local taxes and fees is established in the Tax Code (Article 15): land tax; property tax individuals; advertising tax; inheritance or gift tax; local license fees.

The practice of local self-government in our country shows that local taxes and fees are not enough to successfully resolve issues of local importance. Therefore, Russian legislation provides for the allocation of other financial resources for municipalities, in particular, assigning to them shares of federal and regional taxes and fees. These financial resources are called regulatory income.

Regulatory income includes income that goes to local budgets in the form of percentage deductions from taxes or other payments according to standards approved in accordance with the established procedure for the next fiscal year, as well as on a long-term basis (at least three years). The amount of regulatory income is established (in percentage) by a decision of the relevant government authority.

The shares of federal and regional taxes assigned to municipal budgets on a permanent basis play an important role in replenishing the revenue side of local budgets. These shares are fixed, unlike regulatory income, on a permanent basis.

Non-tax types of income include:

• income from the sale of municipal property;
• income from the use of municipally owned property;
• income from paid services provided by local governments;
• funds received as a result of the application of civil and administrative liability measures.

In addition, from the state, municipalities receive income in the form of financial assistance. It can be in the form of grants, subventions, subsidies.

Subsidies- these are budget funds provided to local budgets from the federal budget and budgets of constituent entities of the Russian Federation on a free and irrevocable basis to cover current expenses. Subsidies do not have a specific purpose and can be used by local governments at their own discretion.

Subventions- these are budget funds allocated for specific purposes and for a certain period of time to municipalities from the federal budget of the Russian Federation, the budget of a constituent entity of the Russian Federation and subject to return to the corresponding budget in case of non-use of them for their intended purpose in fixed time. The expenditure of these funds is controlled by government agencies.

Subsidies- budget funds provided to the local budget by the Russian Federation, a constituent entity of the Russian Federation on the terms of shared financing of targeted expenses.

Non-tax revenues of the municipal budget include the so-called self-taxation funds. They are understood as one-time payments from citizens to resolve specific issues of local importance. Issues regarding the introduction and use of self-taxation funds are decided by a local referendum. Municipalities can attract borrowed funds, including through the issuance of municipal securities, in the manner established by the representative body of local government.

In addition to the revenue part, the local budget also has an expenditure part. Expenditures of local budgets are formed on the basis of registers of expenditure obligations of the relevant municipalities. These expenses, according to the Budget Code of the Russian Federation, are divided into expenses jointly financed from the budget of a municipal entity, the budget of a constituent entity of the Russian Federation and the budget of the Russian Federation, and expenses financed exclusively from local budgets.

The expenditure portion of the local budget in accordance with Article 12 of the federal law “On the financial foundations of local self-government in the Russian Federation” includes:

• costs associated with resolving issues of local importance;
• expenses associated with the implementation of certain state powers transferred to a local government body;
• expenses associated with servicing and repaying debt on municipal loans and borrowings;
• allocations for insurance of municipal employees and municipal property;
• other expenses provided for by the charter of the municipality.

Expenditures of local budgets are divided into expenses included in the current expenditure budget and the development budget. Expenses must match income. The principle of a balanced budget is a necessary condition budgetary activities. Failure to address this principle creates a budget deficit.

Power and economics

A. Y. ZAPOROZHAN

ECONOMIC BASIS OF LOCAL GOVERNMENT

KEY WORDS: local government, economic basis, municipal property, local budget funds, municipalities

^^The article is devoted to consideration of the components of the economic basis of local self-government. Are being researched

reasons for conflicts that arise in the process of delimiting property between the constituent entities of the Russian Federation and municipalities. Particular attention is paid to considering the role of municipal property, as well as the structure of tax revenues of local budgets. In conclusion, the author argues that disproportions between income and expenditure of local budgets will lead to the fact that budget transfers, i.e., financing from higher budgets, will eventually become the economic (financial) base of municipalities.

principles of organization of local self-government in the Russian Federation" (hereinafter referred to as Law No. 131-FZ), the economic basis of local self-government is property in municipal ownership, funds from local budgets, as well as property rights of municipalities.

Let's consider these components.

In contrast to previous legislation, this law established a specific (exhaustive) list of types of property that may be part of municipal property. This list of property was determined in accordance with the principle of intended purpose, according to which municipal property can only include property that is intended to solve public problems falling under the jurisdiction of municipalities. Such a tough and unambiguous decision regarding property that may be part of municipal property has created many problems in practice.

Firstly, lists of issues of local importance, municipal

formations are not completely identical to the list of property that may be part of municipal property. According to some experts, municipal property does not include property for solving such local issues as creating conditions for providing residents of municipalities with communication services, public catering, trade, consumer services, assistance in the development of agricultural production, etc. .

Secondly, legislators defined municipal property only as the basis for the exercise of powers by local governments to resolve issues of local importance and thereby limited its role in the life of municipalities. In fact, this role is more significant.

Municipal property should serve as the basis for satisfying public interests and collective needs of the local community, i.e. fulfill social function. And if, in accordance with the first, narrower interpretation of the role of municipal property in the life of municipalities, one can still try to give an exhaustive list of types of property that can be part of municipal property, then in accordance with the second, broader interpretation, this is in principle impossible to do. The fact is that in this case, the specifics of each municipal entity come to the fore, for the functioning of which it is necessary to solve different problems and, accordingly, have different types of property.

It is for the reasons discussed above that the articles of Law No. 131-FZ establishing the composition of municipal property were amended several times, which, on the one hand, expanded the list of types of property that can be part of municipal property1, and on the other, blurred clear definitions of this property. This, in turn, raises objections from other specialists who oppose the endless expansion of the types of property that can be part of municipal property.

Thus, we can draw the first conclusion that the very idea of ​​​​determining the boundaries of property that may be part of municipal property is absurd. However, the norm of Law No. 131-FZ,

determining the composition of municipal property is in effect. There are also restrictions on the formation of municipal property arising from this norm. At the same time, property intended for solving public problems falling under the jurisdiction of municipalities has its own specifics. It “is characterized by the predominance of objects that require budget financing from municipalities.

Moreover, the smaller the municipalities, the greater the share in municipal ownership of objects that require budget financing and, accordingly, the more problems with their maintenance and financing. The fundamental feature of the composition of municipal property is that it is income-consuming.

A huge part (60-70%) budget expenditures is allocated for the purpose of maintaining municipal property in working order.”

It would seem that for balance, municipal property should include property that would cover the costs of maintaining income-consuming facilities. In other words, in the composition of municipal property there should be a balance between income-consuming and income-generating objects. However, there is no such balance and cannot exist in principle, because the provisions of Law No. 131-FZ prohibit this. In accordance with these norms: - the creation of enterprises not related to the tasks of local government is illegal; - property intended for commercial purposes must be repurposed or transferred to other owners.

It is important to note that the provisions of Law No. 131-FZ are not passive, that is, they simply prohibit municipalities from having profit-oriented enterprises. In accordance with Law No. 131-FZ, the property of municipalities not included in the list of permitted entities had to be repurposed or subject to alienation in the process of delimiting property between the Russian Federation (subjects of the Russian Federation) and municipal entities before January 1, 20092. This process in practice has enormous negative consequences for municipalities. The point is not only that municipalities will have to part with profit-oriented enterprises that they owned and the income from which sometimes constituted a significant share of local budget revenues.

The point is also that in the process of delimiting property between the Russian Federation (subjects of the Russian Federation) and municipalities, the composition of municipal property is replenished not only with income from consuming, but also problematic and even vicious (cattle burial grounds) property.

The process of delimiting property between the Russian Federation (subjects of the Russian Federation) and municipalities is characterized by the following circumstances. On the one hand, there is an objective procedure for transferring to municipalities objects that, in accordance with Law No. 131-FZ, must be part of municipal property. On the other hand, it is forcing local governments to accept into municipal ownership: - objects that are in disrepair or require overhaul; - objects without technical documentation; - disputed or ownerless property.

Economic disputes that arise in the process of delimiting property between the Russian Federation (subjects of the Russian Federation) and municipalities (when, for example, municipalities refuse to accept some property as part of municipal property) end, as a rule, not in favor of the municipalities. “Arbitration courts make decisions to force local governments to accept social and cultural facilities (or housing stock) into municipal ownership, pointing out the unlawfulness of putting forward additional requirements for their acceptance into municipal ownership. The basis for such decisions is most often the Decree of the Government of the Russian Federation of March 7, 1995 No. 235, according to which the obligation to transfer and accept property is determined imperatively and is not conditioned by the imposition of additional obligations on the transferring party...”

The situation described above, in our opinion, is devoid of any

common sense. Objects of social and cultural significance or housing stock must become part of municipal property by virtue of Law No. 131-FZ. However, these objects should not be transferred in a state of disrepair or with compensation for their repairs taken into account, because it is obvious that there is no money in local budgets for their repairs. However, arbitration courts, when resolving economic disputes, make different decisions: “Transfer of property in federal ownership to municipalities in the manner prescribed by Part 11 of Art. 154 of Federal Law No. 122-FZ, is not a transfer of state powers to maintain the specified property, and therefore does not provide for financial compensation.”

If municipalities refuse to accept into their composition for the reasons discussed above this or that property transferred to them, then the law in this case is not on their side. "IN

If the transfer deed is not signed and/or submitted to the government body carrying out the transfer of property within the prescribed period, the transfer deed is approved authorized body unilaterally (rulings of the Federal Arbitration Courts of the Moscow and Ural Districts in relevant cases). The right of ownership of property transferred to municipal ownership is established by the regional executive authorities (decision of the Supreme Court of the Russian Federation dated May 16, 2007 in case No. 59-G07-7).

In addition to including income from consuming, problematic or defective property in municipal property, municipalities also incur expenses for paying a significant state fee for registering ownership of real estate, as well as state fees for registering constituent documents when transferring property of enterprises, institutions and organizations into municipal property from state property.

Based on the results of the study, the following conclusions can be drawn: 1. In the process of delimiting property between the Russian Federation (subjects of the Russian Federation) and municipal entities, arbitrariness is happening in relation to municipal entities. The worst thing is that this arbitrariness is formalized by legal norms, i.e., legalized arbitrariness is happening.

2. The norms of legislation on the object composition of municipal property and on the delimitation of property between the Russian Federation (subjects of the Russian Federation) and municipalities contradict the Constitution of the Russian Federation and the legal position of the Constitutional Court of the Russian Federation, according to which all entities recognized as owners must have the same powers, and the state must ensure equal protection of the rights of all owners, including by abandoning unjustified restrictions on the object composition of property that may belong to public owners.

3. Municipal property cannot be the economic basis of local self-government, because, being by its nature income-consuming, it not only does not generate budget revenues, but, on the contrary, requires significant budget expenditures to maintain municipal property in working order.

The situation with municipal property is not a coincidence of unforeseen circumstances.

It expresses the logical result, the goal of the policy pursued by the legislative branch. Chairman of the State Duma Committee on Property V. Pleskachevsky clearly defines his position on the role of municipal property in the life of municipalities: “In absolutely all cases where power functions coexist with economic functions for the disposal of property, the threat of corruption arises. Excess property entails excess powers, and the maintenance of property administrators is more expensive than the income from this property. Today, 35-40% of the income structure of municipalities consists of income from the use of property. In developed economies, the share of non-tax revenues is 5-6%. This is the limit"

V.V. Putin, during his presidency, even more clearly defined his position on the issue under consideration: “The authorities should retain only the property that is necessary for the powers of power.”

This position regarding municipal property is convincing and generally justified.

However, in this case, the following counterarguments can be made: 1. Why, in practice, only in relation to municipalities is a strict policy adopted to determine the boundaries of municipal property2. In developed economies, a small share of non-tax revenues is covered by tax revenues. Revenues from property taxes alone account for 60% of local budget revenues there. And what can be said about Russia in this regard? As you know, local budget revenues include: - tax revenues, - non-tax revenues, - gratuitous transfers.

Tax revenues are differentiated into: - revenues from local taxes, - deductions from federal taxes according to the standards established in the budget code, - deductions from regional taxes according to the standards established by regional authorities.

The most significant are the revenues from local taxes, since the amount of their receipts in local budgets directly depends on the activities of local governments.

As a result of changes in budget and tax legislation during recent years among local taxes that form the financial base of local budgets at the expense of own funds, there are only 2 taxes left: land tax and property tax for individuals.

Receipts from land tax and property tax assigned to local budgets in the amount of 100% actually provide funds that are much less than expected and do not cover a significant part of expenditure obligations.

From the table below (Table 1) it is clear that the share of revenues from local taxes in the structure of local budget revenues in 2006 was less than 11%.

Municipalities, at the expense of their own financial base (tax and non-tax revenues), are not able to ensure the fulfillment of the expenditure obligations assigned to them by budget legislation in full.

Thus, in the Republic of Karelia, the financial resources of urban settlements are 1.5 times less than necessary, and rural ones - 5 times. Often the funds in the local budget are only enough to pay wages municipal employees. According to information from regional control and accounting bodies, only 2% of Russian municipalities are self-sufficient; the expenses of the rest are on average twice as high as their income. The lack of local budgets' own revenues is compensated by budget transfers.

Expenditures of local budgets to resolve issues of local importance, according to the Ministry of Finance of the Russian Federation, in 2006 amounted to 1074 million rubles. These expenses were covered by 59.5% from tax and non-tax revenues of local budgets in the amount of 638.5 million rubles. The rest of the costs were covered by interbudgetary transfers. However, in the next 3 years, the ratio of own income and interbudgetary transfers, according to calculations of the same Ministry of Finance of the Russian Federation, will change significantly: gratuitous receipts from other budgets budget system of the Russian Federation to local budgets of the Russian Federation in 2008-2010. will amount on average to about 60% of the annual revenues of local budgets. At the same time, in fact, in a quarter of the constituent entities of the Russian Federation this figure already exceeds 65%, in certain regions (Karachay-Cherkessia, Yakutia, Kurgan region) it exceeds 75%, and in the Altai and Tyva republics it exceeds 80%. According to data from other sources, already at present, local budget revenues from gratuitous receipts amount to up to 85% of the total level of local budget revenues.

One can agree with the official position of the Ministry of Finance of the Russian Federation, according to which the balance of local budgets should be considered not only from the point of view financial security municipalities with taxes assigned to them by current legislation, but also taking into account interbudgetary transfers allocated from regional budgets, due to which it is possible, in conditions of significant differentiation of the tax potential of municipalities, to equalize their budgetary security. It's all about the share of interbudgetary transfers in the structure of local budget revenues. When the share of interbudgetary transfers in the structure of local budget revenues in every fourth subject of the federation exceeds 65%, and in some is 80-85%, then we can talk about the erosion of one of the basic principles of the Russian budget system - the principle of financial independence of municipalities.

As the provisions of Law No. 131-FZ on the object composition of municipal property and on the delimitation of property between the Russian Federation (subjects of the Russian Federation) and municipalities are implemented, the situation will only worsen. The fact is that local budget revenues will be reduced due to the removal of profit-oriented enterprises from municipal ownership, and expenses will increase due to the maintenance of the property transferred to municipal ownership, which, as noted earlier, is essentially income-consuming. The increasing gap between local budget revenues and expenditures can only be covered by increasing the volume and, accordingly, the share in the structure of local budget revenues of interbudgetary transfers. And this, ultimately, will lead to the fact that the economic (financial) base of municipalities will eventually become budget transfers, i.e. financing from higher budgets.

The economic basis of local self-government consists of municipal property, local finances, property owned by the state and transferred to the management of local governments, as well as other property that serves to meet the needs of the population of the municipality.

Municipal property. Municipal property includes local budget funds, municipal off-budget forms, property of local governments, as well as municipal lands and other natural resources in municipal ownership, municipal enterprises and organizations, municipal banks and others. financial and credit organizations, municipal housing stock and non-residential premises, municipal educational, healthcare, cultural and sports institutions, other movable and immovable property. The rights of the owner in relation to property included in municipal property are exercised on behalf of the municipality by local government bodies, and in cases provided for by laws and charters, by the population directly.

Local government bodies, in accordance with the law, have the right to transfer objects of municipal property for temporary or permanent use to individuals and legal entities, lease, alienate in the prescribed manner, and also make other transactions with property in municipal ownership, as determined in contracts and agreements conditions for the use of objects being privatized or transferred for use. In the interests of the population, conditions for the use of lands located within the boundaries of the municipality are established.

The procedure and conditions for the privatization of municipal property are determined by the population directly or by representative bodies of local self-government independently. Proceeds from privatization go in full to the local budget. Municipal property is recognized and protected by the state in the same way as state, private and other forms of property.

Local government bodies have the right, in accordance with the law, to create enterprises, institutions and organizations to carry out economic activities, and resolve issues of their reorganization and liquidation. They themselves determine the goals, conditions and procedure for the activities of enterprises, institutions and organizations that are in municipal ownership, regulate prices and tariffs for their products (services), approve their charters, appoint and dismiss the heads of these enterprises, institutions and organizations, hear reports on their activities. Relations between local government bodies and the heads of enterprises, institutions and organizations owned by municipal property are built on a contractual basis in accordance with labor legislation.

The relations of local governments with enterprises, institutions and organizations that are not municipally owned are defined differently. On issues that are not within the competence of local self-government bodies, their relations with enterprises, institutions and organizations that are not municipally owned, as well as with individuals, are built on the basis of contracts. However, local government bodies, in accordance with the law, have the right to coordinate the participation of enterprises, institutions and organizations in the comprehensive socio-economic development of the territory of the municipality. At the same time, they do not have the right to establish restrictions on the economic activities of enterprises, except in cases provided for by law.

Local government bodies have the right to act as a customer (municipal order) for the implementation of work on the improvement of the territory of the municipality, public services for the population, construction and repair of social infrastructure, production of products, provision of services necessary to meet the everyday and socio-cultural needs of the population of the relevant territory, on performing other work using the own material and financial resources provided for this.

Local government bodies have the right to carry out foreign economic activity in the interests of the population in accordance with the procedure established by law.

Local budgets. Budgetary and financial issues are regulated by the Federal Law “On the Financial Foundations of Local Self-Government in the Russian Federation” (as amended on December 28, 2004).

Local finance includes local budget funds, state and municipal securities owned by local governments, and other financial resources. The formation and use of local finances are based on the principles of independence, state financial support and transparency. The rights of the owner in relation to local finances are exercised on behalf of the population of the municipality by local government bodies or directly by the population of the municipality in accordance with the charter of the municipality.

Each municipal entity has its own budget and the right to receive funds from the federal budget and funds from the budget of a constituent entity of the Russian Federation in the process of implementing budget regulation. The formation and execution of the local budget is carried out by local government bodies independently in accordance with the charter of the municipality. State authorities guarantee the right of representative bodies of local self-government to independently determine the direction of use of local budget funds, to dispose of free balances of local budget funds formed at the end of the financial year as a result of an increase in revenues or a decrease in expenses. The state also guarantees compensation for increases in expenses or decreases in local budget revenues resulting from the adoption of federal laws and laws of constituent entities of the Russian Federation, as well as other decisions of government bodies.

Revenue part Local budgets consist of their own revenues and revenues from regulatory revenues; it can also include financial assistance in various forms (subsidies, subventions, funds from the financial support fund for municipalities), funds for mutual settlements. Own income includes local taxes and fees, other own income, shares of federal taxes and shares of taxes of constituent entities of the Russian Federation assigned to local budgets on an ongoing basis. These taxes and fees are transferred by taxpayers to local budgets.

Own income of local budgets also includes income from the privatization and sale of municipal property, at least 10% of income from the privatization of state property located on the territory of the municipality, carried out in accordance with the state privatization program, income from the rental of municipal property, including the rental of non-residential premises, and municipal lands; payments for the use of subsoil and natural resources established in accordance with the legislation of the Russian Federation; at least 50% of the property tax of enterprises (organizations); income tax from individuals engaged in entrepreneurial activities without forming a legal entity, etc.

The own revenues of local budgets also include shares of federal taxes distributed between budgets of different levels and assigned to municipalities on a permanent basis. Among them are part of the personal income tax, part of the corporate income tax, part of the value added tax on domestically produced goods, part of the excise taxes on alcohol, vodka and liquor products and a number of other goods.

Representative bodies of local self-government have the right to establish local taxes and fees and provide benefits for their payment in accordance with federal laws; in accordance with the legislation, make decisions on the establishment or abolition of local taxes and fees, on making changes to the procedure for its payment. Local government bodies have the right to receive into the local budget the taxes provided for by law from branches and representative offices whose head enterprises are located outside the territory of a given municipality. The population of a municipality can directly make decisions on one-time voluntary collections of funds from citizens in accordance with the charter of the municipality. Self-tax funds collected in accordance with these decisions are used exclusively for their intended purpose. Local authorities inform the population of the municipality about the use of self-taxation funds.

Independence does not interfere with control over local government bodies by the authorities of the constituent entity of the Russian Federation.

Thus, when deciding on the provision of financial assistance to municipalities, public authorities of a constituent entity of the Russian Federation have the right to check the validity of the provision of financial assistance, and after making a positive decision, check the sufficiency of measures to increase local budget revenues, compliance with legislation on the expenditure of local budget funds, including their intended use . State authorities of the Russian Federation and state authorities of constituent entities of the Russian Federation have the right to exercise control over the expenditure of funds allocated by them to municipalities for the implementation of federal target and regional programs, as well as in the form of subventions.

Representative bodies of local self-government independently develop regulations on the budget process in a given municipality in accordance with the general principles of the budget process established by federal laws and laws of the constituent entities of the Russian Federation. Drafting of budgets, their approval and execution are carried out in accordance with budget classification of the Russian Federation and the budget classification of the constituent entity of the Russian Federation. Control over the execution of local budgets is carried out by representative bodies of local self-government.

Local government bodies perform the functions of organizing local finance in cooperation with financial and credit organizations operating both on the territory of the relevant municipality and beyond. They promote the development of the local finance market and local financial and credit organizations.

A representative body of local self-government has the right, at the expense of local budget funds, to create a municipal tax service to collect local taxes. But this service is obliged to provide the Federal tax service all requied information. Local governments interact with territorial authorities Federal Treasury on the basis of compliance with state interests and mutual provision of information. They also have the right to enter into agreements with territorial bodies of the Federal Treasury on servicing the execution of local budgets. At the same time, the representative body of local self-government has the right to create a municipal treasury at the expense of local budget funds. A municipality has the right to make loans by issuing bonds secured by municipal property and local budget funds.

FEDERAL EDUCATION AGENCY

State educational institution higher vocational education

"FAR EASTERN STATE TECHNICAL UNIVERSITY (FEPI named after V.V. KUIBYSHEV)"

PACIFIC INSTITUTE OF POLITICS AND LAW

Department of State and Municipal Administration

COURSE WORK

Economic basis of local government

Completed:

Student gr. P- 8601

Smirnova Anastasia Leonidovna

Scientific adviser:

Associate Professor of the Department of State Medical University

Sysoeva Galina Mikhailovna

Vladivostok

INTRODUCTION........................................................ ........................................................ ...... 3

CHAPTER 1. CONCEPT OF ECONOMIC FUNDAMENTALS OF LOCAL SELF-GOVERNMENT................................................... ............................................. 5

1.1.Definition of the concept of economic foundations of local self-government …………………………………………………………….……………….

1.2. Municipal property - as a component of the economic basis of local government ………………….………………………………

CHAPTER 2. Local budget: concept, structure, principles of formation

2.1. The concept of local budget………………………………………………………………………………….

2.2. Leveling the level of budgetary provision…………………………………….

2.3. Revenue part of local budgets………………………………………………………

2.4. Expenditures of local budgets……………………………………………………...

CONCLUSION................................................. ............................................... 36

LIST OF SOURCES AND LITERATURE USED.......... 38

INTRODUCTION

The formation of an effective system of local self-government is impossible without the main tasks: personnel capable of working in new legal conditions, and ensuring the economic foundations of local self-government. The economic basis of local self-government consists of municipally owned property, funds from local budgets, as well as property rights of municipalities. Local self-government is the most important element of a democratic state system and is designed to ensure a combination of state interests and the interests of each individual city, town, village, each in some way isolated populated territory. Local self-government bodies are called upon to resolve issues of local importance, to create conditions for meeting the everyday needs of the population - but this is the realization of one of the key human and civil rights guaranteed by democratic states - the right to a decent life. Local government bodies must have the right to an economic and financial base sufficient to carry out their functions and powers. At present, the economic basis of local self-government is not stable enough and requires special consideration, and the process of formation and development of local self-government in the Russian Federation is proceeding with great difficulties. That is why the topic of this course work is relevant. The constitutional consolidation of the financial foundations of local self-government emphasizes the importance of the topic under consideration. Issues of economic activity of local self-government, its individual types and forms have received some coverage in the works of Russian scientists and practitioners, such as Veselovsky B.B., Gradovsky A.D., Troysky P.P., Korkunov N.M., Lazarevsky N. .I., Velikhov L.A. Issues related to one degree or another with the fundamentals of local self-government are contained in the works of O.E. Kutafina “Competence of local Councils”, G.V. Barabasheva “Municipal bodies of a modern capitalist state”, V.A. Baranchikova “Law of local self-government”, V.I. Fadeeva “Municipal Law of Russia”, N.L. Peshin “Legal regulation of the financial system of local government in the Russian Federation”, etc. The object of the study is the economic basis of local self-government and the legal relations that develop on this basis. The subject of the study is the constitutional and legal aspect of the economic basis of local self-government. The purpose of this work is to study the features of the economic basis of local government. There are many reasons and problems, including financing problems, that slow down and do not contribute to the development of local self-government in the Russian Federation. To achieve this goal, the work considers such tasks as:

Study and consider the concept of the economic basis of local government;

Consider municipal property as one of the components of the economic basis of local government;

Define the concept of local budget.

The general methodological basis in this course work was general scientific methods, such as: the right method, the forecasting method, the method of analysis and synthesis, the formalization method, which made it possible to formulate the concept of “economic basis” of local government.

A special place in this work is given to the definition of the concept of financial and economic foundations of local government, the development of municipal economic policy, the process of formation and approval of the local budget as the basis for the effective functioning of local government, as well as the concept of municipal property.

The structure of the course work includes: content, introduction, two chapters, six paragraphs, conclusion, list of sources and literature used.

CHAPTER 1. CONCEPT OF ECONOMIC FUNDAMENTALS OF LOCAL SELF-GOVERNMENT

1.1. Definition of the concept of economic foundations of local self-government

The reality and effectiveness of local self-government is determined, first of all, by material financial resources, available to municipalities and collectively constituting the financial and economic foundations of local self-government.

As an institution of municipal law, the economic foundations of local self-government are a set of legal norms that consolidate and regulate social relations associated with the formation and use of municipal property, local budgets and other local finances in the interests of the population of municipalities.

Economic foundations, ensuring the economic independence of local self-government, serve, first of all, to meet the needs of the population of municipalities and create conditions for their life. At the same time, the strengthening and development of the financial and economic foundations of local self-government has an impact on the economic and financial situation in the country as a whole. But it should be taken into account that the financial and economic independence of municipalities is largely determined by the state of the economy of our society and its finances.

The economic basis of local self-government consists of municipally owned property, funds from local budgets, as well as property rights of municipalities.

Recognition and guarantee by the state of local self-government presupposes that the state assumes certain obligations to create the necessary economic, financial and other conditions and prerequisites for the development of local self-government.

State authorities of the Russian Federation and state authorities of the constituent entities of the Russian Federation are obliged to promote the development of the financial and economic foundations of local self-government. For these purposes, in accordance with the federal law “On the general principles of the organization of local self-government in the Russian Federation” of August 28, 1995:

Regulate by law the procedure for transferring state property into municipal ownership;

Transfer to local self-government bodies the material and financial resources they need to exercise certain state powers that may be vested in these bodies by law;

Develop and establish state minimum social standards;

Regulate the relationship between the federal budget and local budgets, between the budget of a constituent entity of the Russian Federation and local budgets;

Ensure the balance of minimum local budgets based on minimum budgetary provision standards;

Provide guarantees of financial independence of local government:

Compensate local government for additional expenses arising as a result of decisions made by government bodies;

Participate in solving local problems through targeted federal and regional programs.

1.2. Municipal property - as a component of the economic basis of local government

The procedure for municipal property in modern Russia was first defined by a resolution of the legislative assembly “On the division of state property in the Russian Federation into federal property, state property of constituent entities, republics within the Russian Federation, territories, regions, autonomous regions, autonomous districts, the cities of Moscow, St. Petersburg and municipal property.” According to Appendix 3 to this resolution of the Supreme Council of the Russian Federation, firstly, state-owned objects located on the territory of city and district Councils were transferred to municipal ownership. These included: housing and non-residential funds managed by the local administration, as well as housing maintenance and repair and construction enterprises servicing the above-mentioned facilities; engineering infrastructure facilities and other facilities under the operational management of the local administration. Secondly, state property objects that were under the jurisdiction of state authorities of the constituent entities of the Russian Federation and located on the territory of the corresponding cities were transferred to municipal ownership: retail trade, public catering and consumer services enterprises; wholesale and warehouse facilities; institutions and facilities of healthcare, public education, culture and sports. Thirdly, the resolution of the Supreme Council of December 27, 1991 provided for the transfer to municipal ownership of retail trade, catering and consumer services enterprises that were under the jurisdiction of ministries, departments, and state enterprises.

The Constitution of the Russian Federation determines economic conditions local government. This finds its expression:

In the recognition and equal legal protection of municipal property along with other forms of ownership;

Local governments have the right to independently manage municipal property.

Municipal property, the procedure for its formation, ownership, use and disposal are also established by the Civil Code of the Russian Federation, the Law on General Principles of the Organization of Local Self-Government, and other laws and regulations.

The concept of “municipal property” was introduced in the Russian Federation by the Law of the RSFSR of December 24, 1990 “On Property in the RSFSR,” which became invalid after the entry into force of Part 1 of the Civil Code of the Russian Federation on January 1, 1995.

Municipal property is property owned by urban, rural settlements, as well as other municipal entities.

Management of municipal property is carried out by local governments, which does not make them the owners of municipal property.

In accordance with Art. 215 of the Civil Code of the Russian Federation and Art. 29 of the Law on General Principles of Organization of Local Self-Government, the rights of the owner of municipal property belong to the municipality. On his behalf, these rights are exercised by local government bodies, and in cases provided for by the laws of the constituent entities of the Federation and the charters of municipalities, directly by the population itself.

The property owned by the municipality is divided into two parts: one part is assigned to municipal enterprises and institutions with the right of economic management and operational management, and the other (local budget funds and other municipal property not assigned to municipal enterprises and institutions) is, according to Art. 215 of the Civil Code of the Russian Federation, the municipal treasury of the corresponding urban, rural settlement or other municipal entity.

The Law “On General Principles of the Organization of Local Self-Government” establishes that municipal property includes:

Local budget funds, municipal extra-budgetary funds;

Property of local government bodies;

Municipal lands and other natural resources in municipal ownership;

Municipal enterprises and organizations;

Municipal banks and other financial and credit organizations;

Municipal housing stock and non-residential premises;

Municipal institutions of education, health care, culture and sports;

Other movable and immovable property. The list of objects of municipal property of a municipal formation is determined by the features of its socio-economic development, the size of the territory, as well as other factors.

The European Charter of Local Self-Government states:

a) local governments have the right, within the framework of national economic policy, to have sufficient financial resources of their own, which they can freely dispose of in the performance of their functions;

b) the financial resources of local self-government bodies must be proportionate to the powers granted to them by the constitution or law;

c) at least part of the financial resources of local governments must come from local fees and taxes, the rates of which local governments have the right to set within the limits determined by law;

d) the financial systems on which the funds of local governments are based should be sufficiently diverse and flexible to follow, as far as possible, changes in costs arising from the exercise of the competence of local authorities;

e) the protection of financially weaker local governments requires the introduction of financial equalization procedures or equivalent measures designed to correct the results of the uneven distribution of potential sources of funding for local authorities and the costs they bear. Such procedures or measures should not limit the freedom of choice of local governments within the limits of their competence.

These provisions of the European Charter on Local Self-Government can be considered as general principles that should determine the economic, financial and tax policy of a democratic state in relation to local authorities, reflected in the legislation of a given country.

From all of the above, we can conclude that municipal property is an integral part of the economic basis of local self-government. After all, the economic basis, ensuring the economic independence of local self-government, serves, first of all, to meet the needs of the population of municipalities and create conditions for their life. At the same time, the strengthening and development of the economic foundations of local self-government has an impact on the economic and financial situation in the country as a whole. But it should be taken into account that the financial and economic independence of municipalities is largely determined by the state of the economy of our society and its finances.

CHAPTER 2. LOCAL BUDGET: CONCEPT, STRUCTURE, PRINCIPLES OF FORMATION

Local budgets constitute the third level of the budget system of the Russian Federation.

The presence of a budget strengthens the economic independence of local governments, promotes the activation of economic activity and the development of infrastructure in the corresponding territories.

From the point of view of economic theory, the local budget should be considered as “a set of economic relations that contribute to territorial redistribution national income countries that ensure the creation of a financial base for local authorities."

Local budgets are described in Art. 52 of Federal Law N131-FZ "On the general principles of organizing local self-government in the Russian Federation":

1. Each municipality has its own budget (local budget).

The budget of the municipal district and the set of budgets of the settlements that are part of the municipal district constitute the consolidated budget of the municipal district.

As an integral part of settlement budgets, estimates of income and expenses of individual settlements that are not settlements may be provided. The procedure for the development, approval and execution of these estimates is determined independently by the local government bodies of the relevant settlements.

2. Local government bodies ensure the balance of local budgets and compliance with the requirements established by federal laws for the regulation of budgetary legal relations, the implementation of the budget process, the size of the local budget deficit, the level and composition of municipal debt, and the fulfillment of budgetary and debt obligations of municipalities.

3. The formation, approval, execution of the local budget and control over its execution are carried out by local government bodies independently in compliance with the requirements established by the Budget Code of the Russian Federation and Federal Law N 131-FZ "On the General Principles of the Organization of Local Self-Government in the Russian Federation", as well as adopted in accordance with them the laws of the constituent entities of the Russian Federation.

4. Local government bodies, in the manner established by federal laws and other regulatory legal acts of the Russian Federation adopted in accordance with them, submit reports on the execution of local budgets to the federal government bodies and (or) government bodies of the constituent entities of the Russian Federation.

5. Local budgets separately provide for income allocated to the exercise of powers of local government bodies to resolve issues of local importance, and subventions provided to ensure the exercise by local government bodies of certain state powers delegated to them by federal laws and laws of constituent entities of the Russian Federation, as well as carried out for account of the indicated income and subventions, corresponding expenses of local budgets.

6. The draft local budget, the decision to approve the local budget, the annual report on its implementation, quarterly information on the progress of execution of the local budget and on the number of municipal employees of local government bodies, employees of municipal institutions, indicating the actual costs of their monetary support, are subject to official publication.

Local government bodies of the settlement provide residents of the settlement with the opportunity to familiarize themselves with the specified documents and information if it is impossible to publish them.

According to Art. 6 of the Budget Code of the Russian Federation, the budget process is the activity of local government bodies and participants in the budget process, regulated by legal norms, in the preparation and consideration of draft budgets, approval and execution of budgets, as well as monitoring their implementation.

The budget process is a complex system of connections and relationships aimed at withdrawing part of the income from the population and providing funds from the budget in order to solve a set of socio-economic problems.

During the Soviet period of development of our state, all budgets operating on the territory of the Russian Federation, including local budgets, were united within a single state budget. Currently, local budgets, being part of the financial system of the Russian Federation, exist as independent monetary funds intended to resolve issues of local importance and perform the functions of local governments.

At the same time, for calculations and analysis during the formation and use budget funds at various territorial levels of government legislation, the concept of “consolidated budget” was introduced - a set of budgets of lower levels territorial levels and the budget of the corresponding national-state or administrative-territorial entity. These consolidated budgets, unlike independent budgets, are not subject to approval and are not legal acts.

Each municipality, in accordance with the law, has its own budget. Thus, the budgets of municipalities include city, district, village budgets, as well as district budgets in urban areas and budgets of rural settlements.

Article 132 of the Constitution of the Russian Federation establishes the right of local government bodies to independently form, approve and execute the local budget.

The independence of the local budget is ensured by:

1. availability of own sources of income;

2. the right to determine the directions of use and expenditure of budget funds;

3. the right to use, at its own discretion, local budget revenues received additionally during its execution (these funds are not subject to seizure by state authorities);

4. the right to compensation for additional expenses arising as a result of decisions taken by public authorities:

5. responsibility of local governments for the execution of the local budget.

2.2. Leveling the level of budgetary provision

According to Art. 60 No. 131-FZ, equalization of the level of budgetary provision of settlements is characterized by:

1. Equalization of the level of budgetary provision of settlements is carried out by providing subsidies from the regional fund for financial support of settlements formed as part of the budget expenditures of a constituent entity of the Russian Federation and regional funds for financial support of settlements formed as part of the budget expenditures of municipal districts.

2. A regional fund for financial support of settlements is formed and subsidies from it are provided in the manner established by Federal Law No. 131 and the Budget Code of the Russian Federation, in order to equalize, based on the number of residents of settlements, the financial capabilities of local self-government bodies of settlements to exercise their powers to resolve issues of local importance.

The amount of subsidies from the regional fund for financial support of settlements is determined for each settlement of a constituent entity of the Russian Federation, with the exception of the settlements specified in Part 5 of Article 60, per one resident of an urban or rural settlement.

These subsidies can be fully or partially replaced by additional standards for deductions from federal and regional taxes and fees established for settlement budgets. The procedure for calculating these standards is established by the law of the constituent entity of the Russian Federation in accordance with the requirements Budget Code Russian Federation.

The distribution of subsidies from the regional fund for financial support of settlements and (or) additional standards for deductions from federal and regional taxes and fees to be credited to the budgets of settlements replacing these subsidies are approved by the law of the constituent entity of the Russian Federation on the budget of the constituent entity of the Russian Federation for the next financial year.

3. In the event that local government bodies of municipal districts are vested with state powers of a constituent entity of the Russian Federation to equalize the budgetary provision of settlements, subsidies from the regional fund for financial support of settlements, provided for in Part 2 of Article 60 No. 131-FZ, are provided from the budget of the municipal district at the expense of subventions provided from the budget of a constituent entity of the Russian Federation, and (or) by establishing by the representative body of a municipal district for settlements included in this municipal district, additional standards for deductions from federal and regional taxes and fees in the manner established by the law of the constituent entity of the Russian Federation in accordance with the requirements of the Budget Code of the Russian Federation .

4. District funds for financial support of settlements are formed and subsidies from them are provided in the manner established by the law of the constituent entity of the Russian Federation in accordance with the requirements of the Budget Code of the Russian Federation, based on the level of budgetary provision of settlements, the financial capabilities of local governments of settlements that are part of the municipal district, exercise their powers to resolve issues of local importance.

Subsidies from district funds for financial support of settlements are distributed among settlements that are part of the corresponding municipal district and the level of estimated budgetary provision of which does not exceed the level of estimated budgetary provision of settlements, determined as a criterion for providing these subsidies to the budgets of settlements in accordance with the methodology approved by the law of the subject of the Russian Federation in accordance with the requirements of the Budget Code of the Russian Federation.

Using indicators of actual income and expenses for settlements when determining the level of estimated budgetary provision of settlements reporting period or indicators of individual city incomes and expenses forecast for the planning period, rural settlements not allowed.

The distribution of subsidies from the district fund for financial support of settlements is approved by the decision of the representative body of the municipal district on the budget of the municipal district for the next financial year.

5. If the level of estimated budgetary provision of a settlement before the level of estimated budgetary provision of settlements in the reporting financial year per capita is equalized is two or more times higher than the average level for a given subject of the Russian Federation, the law of the subject of the Russian Federation on the budget of the subject of the Russian Federation for the next financial year, it may be possible to transfer subventions from the budget of a given settlement to a regional fund for financial support of settlements, or if a municipal entity fails to comply with the requirements of the specified law of a constituent entity of the Russian Federation on the transfer of subventions, the centralization of part of the income from local taxes and fees and (or) a reduction in standards for a given settlement deductions from federal and regional taxes and fees to a level that ensures the flow of funds into the regional fund for financial support of settlements in the amount of the specified subventions.

The procedure for calculating the level of budgetary provision of settlements in the reporting financial year, determining the size of these subventions, centralizing part of the income from local taxes and fees and (or) reducing the standards for deductions from federal and regional taxes and fees is established by the law of the subject of the Russian Federation in accordance with the requirements of No. 131 of the Federal law and the Budget Code of the Russian Federation.

The amount of the subvention provided for by this part for an individual settlement cannot exceed 50 percent of the difference between the total budget revenues of the settlement taken into account when calculating the level of budgetary provision of the settlement in the reporting financial year, and twice the average level of budgetary provision for settlements in the constituent entity of the Russian Federation.

According to Art. 61 No. 131-FZ, equalization of the level of budgetary provision of municipal districts (urban districts) is characterized by:

1. Equalization of the level of budgetary provision of municipal districts (city districts) is carried out by providing subsidies from regional funds for financial support of municipal districts (city districts).

Regional funds for financial support of municipal districts (city districts) are formed and subsidies from them are provided in the manner established by the law of the constituent entity of the Russian Federation in accordance with the requirements of the Budget Code of the Russian Federation, in order to equalize the financial capabilities of bodies based on the level of budgetary provision of municipal districts (city districts) local self-government exercise their powers to resolve issues of local importance.

Subsidies from regional funds for financial support of municipal districts (city districts) are distributed based on the level of budgetary provision of municipal districts (city districts) in accordance with Part 2 of Article 61 No. 131-FZ, as well as based on the number of residents of municipal districts (city districts) in accordance with part 3 of article 61 No. 131-FZ.

2. Subsidies from regional funds for financial support of municipal districts (city districts) are distributed between municipal districts (city districts) of a constituent entity of the Russian Federation, in which the level of estimated budgetary provision of the budget of the municipal district (city district budget) does not exceed the level of estimated budgetary provision of municipal districts (city districts). districts), defined as a criterion for providing the specified subsidies to the budgets of municipal districts (city districts) in accordance with the methodology approved by the law of the constituent entity of the Russian Federation in accordance with the requirements of the Budget Code of the Russian Federation.

General requirements for the procedure for determining the level of estimated budgetary provision of municipal districts (city district budgets) and the methodology for distributing subsidies from regional funds for financial support of municipal districts (city districts) are established by the Budget Code of the Russian Federation.

When determining the level of estimated budgetary provision of municipal districts (budgets of city districts), the use of indicators of actual income and expenses for the reporting period or indicators of income and expenses forecast for the planning period of individual municipal districts (city districts) is not allowed.

The distribution of subsidies from regional funds for financial support of municipal districts (city districts) is approved by the law of the constituent entity of the Russian Federation on the budget of the constituent entity of the Russian Federation for the next financial year.

3. In cases and in the manner established by the Budget Code of the Russian Federation, part of the subsidies from the regional fund for financial support of municipal districts (city districts) may be provided to each municipal district (city district) of a constituent entity of the Russian Federation per capita, with the exception of municipal districts (city districts). districts) specified in Part 4 of Article 61 No. 131-FZ.

In cases and in the manner established by the Budget Code of the Russian Federation, the law of a constituent entity of the Russian Federation may establish a different procedure for calculating the specified part of subsidies for a municipal district and for a city district, provided from the regional fund for financial support of municipal districts (city districts) per resident of the municipal district ( city ​​district).

These subsidies can be fully or partially replaced by additional standards for deductions from federal and regional taxes and fees to the budgets of municipal districts (urban districts). The procedure for calculating these standards is established by the law of the constituent entity of the Russian Federation in accordance with the requirements of the Budget Code of the Russian Federation.

The distribution of subsidies from regional funds for financial support of municipal districts (city districts) and (or) additional standards for deductions from federal and regional taxes and fees to the budgets of municipal districts (city districts) replacing these subsidies are approved by the law of the constituent entity of the Russian Federation on the budget of the constituent entity of the Russian Federation for the next fiscal year.

4. If the level of budgetary provision of a municipal district (urban district) before the level of budgetary provision of municipal districts (city districts) in the reporting financial year per capita is equalized is two or more times higher than the average level for a given subject of the Russian Federation, the law of a constituent entity of the Russian Federation on the budget of a constituent entity of the Russian Federation for the next financial year may provide for the transfer of subventions from the budget of a given municipal district (city district) to the regional fund for financial support of municipal districts (city districts) or if a municipal entity fails to comply with the requirements of the specified law of a constituent entity of the Russian Federation on the transfer subventions centralization of part of the income from local taxes and fees and (or) reduction for a given municipal district (city district) of the standards for deductions from federal and regional taxes and fees to a level that ensures the flow of funds into the regional fund for financial support of municipal districts (city districts) in the amount the specified subsidies.

The procedure for calculating the level of budgetary provision of municipal districts (urban districts) in the reporting financial year, determining the size of these subventions and centralizing part of the income from local taxes and fees and (or) reducing the standards for deductions from federal taxes and fees is established by the law of the constituent entity of the Russian Federation in accordance with the requirements No. 131 of the Federal Law and Budget Code of the Russian Federation.

The amount of the subvention provided for by this part for a separate municipal district (city district) cannot exceed 50 percent of the difference between the total budget revenues of the municipal district (city district), taken into account when calculating the level of budgetary provision of the municipal district (city district) in the reporting financial year, and two times the average by subject of the Russian Federation the level of budgetary provision of municipal districts (city districts).

The local budget has revenue and expenditure parts.

In the Budget Code of the Russian Federation, municipal budget revenues are divided into own and regulatory (Article 60), tax and non-tax (Articles 61, 62).

Own budget revenues include:

· tax revenues assigned to the relevant budgets by the legislation of the Russian Federation;

· means of self-taxation of citizens;

· non-tax income provided for in paragraphs 2-5, paragraph 4 of Art. 41 of the Budget Code of the Russian Federation, as well as other non-tax income;

· gratuitous transfers (Article 45 of the Budget Code of the Russian Federation).

Regulating budget revenues are federal and regional taxes and other payments, for which standards for contributions (in percentage) to local budgets for the next financial year are established, as well as on a long-term basis (for at least 3 years) for various types of such income.

Tax revenues of municipal budgets are:

· own income from local taxes and fees determined by the tax legislation of the Russian Federation;

· deductions from federal and regional regulatory taxes and fees transferred to local budgets by the Russian Federation and a constituent entity of the Russian Federation in the manner established by Art. 58 and 63 BC of the Russian Federation;

· National tax, with the exception of those credited in accordance with Art. 50 of the Budget Code of the Russian Federation into federal budget revenues - according to the standard of 100% at the location of the credit institution that accepted the payment.

Local taxes and fees include taxes and fees established in accordance with the federal laws of the Russian Federation.

According to Art. Part 15 Tax Code In the Russian Federation, local taxes include land tax and property tax for individuals.

According to Article 13 of Part 1 of the Tax Code of the Russian Federation, federal taxes and fees include:

3) Personal income tax

4) Unified social tax

5) Corporate income tax

6) Mineral extraction tax

7) Water tax

8) Fees for the use of fauna and for the use of aquatic biological resources

9) State duty.

According to Article 14 of Part One of the Tax Code of the Russian Federation, regional taxes include: property tax of organizations, tax on gambling business and transport tax.

According to Art. 55 of Federal Law N 131-FZ "On the general principles of organizing local self-government in the Russian Federation":

Own revenues of local budgets include:

1) means of self-taxation of citizens in accordance with Article 56 N131-FZ:

1. means of self-taxation of citizens are understood as one-time payments by citizens made to resolve specific issues of local importance. The amount of payments in the order of self-taxation of citizens is established in absolute value equal for all residents of the municipality, with the exception of individual categories citizens, whose number cannot exceed 30 percent of the total number of residents of the municipality and for whom the amount of payments may be reduced.

2. Issues regarding the introduction and use of one-time payments from citizens specified in Part 1 of Article 55 are resolved at a local referendum (gathering of citizens).

2) income from local taxes and fees in accordance with Article 57 N131-FZ:

1. The list of local taxes and fees and the powers of local government bodies to establish, amend and cancel them are established by the legislation of the Russian Federation on taxes and fees.

2. Local government bodies of a city district have the authority to establish, amend and abolish local taxes and fees established by the legislation of the Russian Federation on taxes and fees for local government bodies of settlements and municipal districts.

3. Revenues from local taxes and fees are credited to the budgets of municipalities at tax rates established by decisions of representative bodies of local self-government in accordance with the legislation of the Russian Federation on taxes and fees, as well as according to the standards of deductions in accordance with Part 4 of Article 57, with the exception of cases , established by part 5 of article 60 and part 4 of article 61 of Federal Law N131-FZ “On the general principles of organizing local self-government in the Russian Federation”.

4. The budgets of settlements that are part of a municipal district, in accordance with the uniform deduction standards for all these settlements established by the regulatory legal acts of the representative body of the municipal district, may be credited with income from local taxes and fees, subject to credit in accordance with the legislation of the Russian Federation on taxes and fees to the budgets of municipal districts.

3) income from regional taxes and fees in accordance with Article 58 N131-FZ:

1. Revenues from regional taxes and fees are credited to local budgets at tax rates established by the laws of the constituent entities of the Russian Federation in accordance with the legislation of the Russian Federation on taxes and fees, as well as according to the standards of deductions in accordance with parts 2 and 3 of Article 58, part 2 of the article 60 and part 3 of article 61 N131-FZ, with the exception of cases established by part 5 of article 60 and part 4 of article 61 of Federal Law N131-FZ “On the general principles of organizing local self-government in the Russian Federation”.

2. Local budgets, in accordance with the deduction standards that are uniform for all settlements or municipal districts of a given constituent entity of the Russian Federation, established by the law of the constituent entity of the Russian Federation, may receive income from certain types of regional taxes and fees, subject to crediting in accordance with the legislation of the Russian Federation on taxes and fees to the budget of a constituent entity of the Russian Federation.

The establishment of these standards by the law of a constituent entity of the Russian Federation on the budget of a constituent entity of the Russian Federation for the next financial year or by another law of a constituent entity of the Russian Federation for a limited period is not allowed.

3. The budgets of settlements that are part of a municipal district, in accordance with the uniform deduction standards for all these settlements, established by decisions of the representative body of the municipal district, may receive income from regional taxes and fees, subject to crediting in accordance with the law of the constituent entity of the Russian Federation to the budgets municipal districts.

The establishment of these standards by a decision of the representative body of a municipal district on the budget of the municipal district for the next financial year or by another decision for a limited period is not allowed.

4. Revenues from regional taxes and fees are credited to the budgets of urban districts at tax rates and (or) deduction standards established by the laws of the constituent entities of the Russian Federation in accordance with the legislation of the Russian Federation on taxes and fees for crediting income from the corresponding regional tax (fee) to the budgets settlements and established by the laws of the constituent entities of the Russian Federation in accordance with the legislation of the Russian Federation on taxes and fees for crediting income from the corresponding regional tax (fee) to the budgets of municipal districts, with the exception of the case established by Part 4 of Article 61 of Federal Law N131-FZ "On General Principles organization of local self-government in the Russian Federation".

4) income from federal taxes and fees in accordance with Article 59 of Federal Law No. 131:

1. Revenues from federal taxes and fees are credited to local budgets according to deduction standards in accordance with parts 2 - 4 of Article 59, part 2 of Article 60 and part 3 of Article 61 of Federal Law No. 131 and (or) at tax rates established by the legislation of the Russian Federation on taxes and fees, except for the cases established by Part 5 of Article 60 and Part 4 of Article 61 of Federal Law N131-FZ “On the General Principles of the Organization of Local Self-Government in the Russian Federation”.

2. The Budget Code of the Russian Federation and (or) the legislation of the Russian Federation on taxes and fees establishes uniform tax rates and (or) deduction standards for crediting income from a certain type of federal tax(collection) to the relevant local budgets.

3. Local budgets, in accordance with the standards of deductions that are uniform for all settlements or municipal districts of a given subject of the Russian Federation, established by the law of the subject of the Russian Federation, may receive income from federal taxes and fees that are subject to credit to the budget of the subject of the Russian Federation in accordance with the Budget Code of the Russian Federation Federation and (or) the legislation of the Russian Federation on taxes and fees.

The establishment of these standards by the law of a constituent entity of the Russian Federation on the budget of a constituent entity of the Russian Federation for the next financial year and (or) by another law of a constituent entity of the Russian Federation for a limited period is not allowed.

4. The budgets of settlements that are part of a municipal district, in accordance with the uniform deduction standards for all these settlements, established by decisions of the representative body of the municipal district, may receive income from federal taxes and fees that are subject to credit to the budgets of municipal districts in accordance with the Budget Code of the Russian Federation, the legislation of the Russian Federation on taxes and fees and (or) the law of the subject of the Russian Federation.

The establishment of these standards by a decision of the representative body of a municipal district on the budget of the municipal district for the next financial year or by another decision for a limited period is not allowed.

5. Revenues from federal taxes and fees are credited to the budgets of urban districts at tax rates and (or) deduction standards established by the legislation of the Russian Federation on taxes and fees for crediting income from the corresponding federal tax (fee) to the budgets of settlements and established by the legislation of the Russian Federation on taxes and fees for crediting income from the corresponding federal tax (fee) to the budgets of municipal districts, with the exception of the case established by Part 4 of Article 61 of Federal Law N131-FZ “On the General Principles of the Organization of Local Self-Government in the Russian Federation”.

5) gratuitous transfers from budgets of other levels, including subsidies to equalize the budgetary provision of municipalities, provided in accordance with Articles 60 and 61 of Federal Law No. 131, other financial assistance from budgets of other levels, provided in accordance with Article 62 of Federal Law No. 131 , and other free transfers;

6) income from property in municipal ownership;

7) part of the profit of municipal enterprises remaining after paying taxes and fees and making other obligatory payments, in the amounts established by regulatory legal acts of the representative bodies of the municipality, and part of the income from the provision of paid services by local governments and municipal institutions, remaining after paying taxes and fees;

8) fines, the establishment of which, in accordance with federal law, is within the competence of local government bodies;

9) voluntary donations;

10) other receipts in accordance with federal laws, laws of constituent entities of the Russian Federation and decisions of local government bodies.

The composition of the own revenues of the budgets of municipal districts, in which the formation of representative bodies of municipal districts is carried out in accordance with paragraph 1 of part 4 of Article 35 No. 131-FZ, includes subventions provided from the budgets of settlements that are part of the municipal district to resolve issues of local importance of intermunicipal nature established by paragraphs 5, 6, 12 - 14 and 16 of part 1 of article 15 of Federal Law No. 131-FZ “On the general principles of organizing local self-government in the Russian Federation”.

The amount of these subventions is determined by the representative body of local self-government of the municipal district according to the same standard for all settlements included in the given municipal district per resident or consumer of budgetary services of the corresponding settlement.

Subsidies- these are funds provided to local budgets from the federal budget and the budgets of the constituent entities of the Federation on a free and irrevocable basis in order to cover current expenses. Subsidies do not have a specific purpose and can be used at the discretion of local governments.

Subventions- these are funds allocated from the federal budget, the budget of a constituent entity of the Russian Federation on a gratuitous and irrevocable basis for the implementation of certain targeted expenses. These funds are provided for the implementation of programs that ensure the socio-economic development of the relevant territories, to eliminate the consequences of natural disasters, etc.

The composition of local budgets' own revenues can be changed by Federal Law No. 131 only if the list of issues of local importance established by Articles 14 - 16 of Federal Law No. 131 is changed and (or) the system of taxes and fees of the Russian Federation is changed.

the federal law No. 131, which provides for changes in the composition of local budgets’ own revenues, comes into force from the beginning of the next financial year, but not earlier than three months after its adoption.

Local budget revenues include subventions provided for the exercise by local governments of certain state powers delegated to them by federal laws and laws of the constituent entities of the Russian Federation, in accordance with Article 63 of Federal Law No. 131-FZ “On the general principles of organizing local government in the Russian Federation.”

Accounting for transactions for the distribution of income from taxes and fees in accordance with the deduction standards established in accordance with Articles 57 - 61 No. 131 of the Federal Law is carried out in the manner established by the Budget Code of the Russian Federation.

The provision of subventions to local budgets for the exercise by local governments of certain state powers is regulated by Art. 63 No. 131-FZ:

1. The total amount of subventions provided from the federal budget and the budget of a constituent entity of the Russian Federation to local budgets for the exercise by local governments of certain state powers delegated to them is determined by the federal law on federal budget for the next financial year and the law of the constituent entity of the Russian Federation on the budget of the constituent entity of the Russian Federation for the next financial year separately for each of the specified state powers.

2. Subventions for the exercise by local self-government bodies of certain state powers delegated to them are provided to local budgets from the regional compensation fund created as part of the budget of a constituent entity of the Russian Federation. This fund is formed from:

1) Subventions from federal fund compensation for the exercise by local self-government bodies of certain state powers delegated to them by federal laws;

2) Subventions of other budget revenues of a constituent entity of the Russian Federation in the amount necessary for the exercise by local self-government bodies of certain state powers delegated to them by the laws of the constituent entities of the Russian Federation.

3) Subventions from the regional compensation fund are distributed among all municipalities of a constituent entity of the Russian Federation, whose local governments exercise individual state powers delegated to them, in proportion to the population (individual population groups) or consumers of the corresponding budgetary services of the municipality, taking into account objective conditions affecting the cost these budget services (volume of payments), and are approved by the law of the constituent entity of the Russian Federation on the budget of the constituent entity of the Russian Federation for the next financial year for each municipality and type of subvention.

The formation, distribution, transfer and accounting of subventions provided from the regional compensation fund are carried out in the manner established by the Budget Code of the Russian Federation.

4) Subventions provided from the federal compensation fund for the exercise of certain state powers delegated to local governments by federal laws are distributed among all constituent entities of the Russian Federation in the manner established by the Budget Code of the Russian Federation, in proportion to the size of the population (certain population groups) or consumers of the relevant budget services subject of the Russian Federation, taking into account objective conditions affecting the cost of these budget services (volume of payments), and are approved by the federal law on the federal budget for the next financial year for each subject of the Russian Federation and type of subvention.

The Budget Code identifies two groups of expenditures of municipal budgets:

· expenses jointly financed from the budget of the Russian Federation, the budgets of the constituent entities of the Russian Federation and the budgets of municipalities (Article 85);

· expenses financed exclusively from local budgets (Article 87).

It should be noted that local budget expenditures are also divided into expenditures included in the current expenditure budget and the development budget (capital expenditure).

The development budget is formed from allocations to finance investment and innovation activities, as well as costs associated with reproduction, expenses that increase or create property owned by municipalities, and other budget expenses included in capital expenses in accordance with economic classification expenditures of the Russian Federation budgets. All other expenses not included in the development budget are included in the current expenditure budget.

According to Art. 53 “Expenditures of local budgets” of Federal Law No. 131-FZ “On the general principles of organizing local self-government in the Russian Federation”:

1. Expenditures of local budgets are carried out in the forms provided for by the Budget Code of the Russian Federation.

Local government bodies maintain registers of expenditure obligations of municipalities in accordance with the requirements of the Budget Code of the Russian Federation in the manner established by the decision of the representative body of the municipality.

2. Local government bodies independently determine the amount and conditions of remuneration for deputies, members of elected local government bodies, elected officials of local government exercising their powers on a permanent basis, municipal employees, employees of municipal enterprises and institutions, establish municipal minimum social standards and other standards expenditures of local budgets to resolve issues of local importance.

In municipalities, the level of estimated budgetary provision of which, determined in accordance with Articles 60 and 61 No. 131 of the Federal Law, is the basis for the provision of subsidies in order to equalize the budgetary provision of the municipality, the amount of remuneration of deputies, members of elected local government bodies, elected officials local self-government exercising their powers on a permanent basis, municipal employees, employees of municipal enterprises and institutions is determined in accordance with the maximum standards established by the law of the constituent entity of the Russian Federation.

3. Expenditures from the budgets of municipal districts to equalize the budgetary provision of settlements are carried out in accordance with parts 3 and 4 of Article 60 No. 131 of the Federal Law.

4. Expenditures of the budgets of municipal districts, in which the formation of representative bodies of municipal districts is carried out in accordance with paragraph 1 of part 4 of Article 35 No. 131 of the Federal Law, to resolve issues of local importance of an intermunicipal nature established by paragraphs 5, 6, 12 - 14 and 16 of part 1 Article 15 No. 131 of the Federal Law are carried out within the limits and at the expense of subventions provided from the budgets of settlements that are part of the municipal district, in the manner prescribed by Part 2 of Article 55 No. 131 of the Federal Law.

5. The procedure for spending local budgets on the implementation of certain state powers delegated to local self-government bodies by federal laws and laws of the constituent entities of the Russian Federation is established, respectively, by the federal government bodies and the government bodies of the constituent entities of the Russian Federation.

In cases and in the manner provided for by these laws and other normative legal acts of the Russian Federation and constituent entities of the Russian Federation adopted in accordance with them, the implementation of local budget expenditures for the exercise by local government bodies of certain state powers delegated to them by federal laws and laws of constituent entities of the Russian Federation may be regulated regulatory legal acts of local governments.

6. Expenditures from local budgets to finance the powers of federal government bodies and government bodies of constituent entities of the Russian Federation are not permitted, except in cases established by federal laws and laws of constituent entities of the Russian Federation.

CONCLUSION

Taking into account the above, we can conclude that there are problems in establishing the independence of local self-government in the Russian Federation. There is a need to radically change the concept of budget regulation, which should be based on the principle of delimitation of budget powers. Each level of government must know what it is responsible for and what it can and should spend money on. The basis for solving the problem of creating normal financial foundations for local self-government should not be the redistribution of budget revenues between levels of the budget system, but the division of revenues in accordance with the objective powers that each body has.

It is in this direction that serious work is needed to create a well-functioning mechanism for providing local governments with appropriate financial resources. As part of the implementation of this approach, it is necessary to determine these powers, the mechanism and procedure for their transfer to the local government level, secure the necessary sources of funding, and ensure their transfer for the execution of delegated powers by local government bodies.

Today, municipalities are redistributed funds through the federal and regional budgets. It is necessary that these funds be included in local budgets at the stage of their formation, i.e. to do without their mass seizure. It is necessary to optimize financial flows between levels of government to eliminate cross-financing.

At the local level, municipal leaders themselves must draw up current socio-economic forecasts, identifying growth points based on existing taxpayers, and develop a program for the long-term development of the territory of the municipality. Such programs will increase the investment attractiveness of a particular territory, as well as pursue an effective policy for developing the socio-economic potential of the municipality, regulating the tax burden for local producers. In addition, local authorities need to independently develop the economic potential of the territory, creating profitable municipal enterprises, and join forces with neighboring municipalities to implement large projects.

Thus, it is necessary to solve the problems of the formation and active development of local self-government in the Russian Federation at different levels and in different directions. But there is one requirement for the successful development of local self-government - a comprehensive solution to the problems at hand. Despite the fact that all these problems are interconnected, solving only one problem will not solve all the others. This should be understood by all parties, both representatives of government bodies and municipal ones in particular.

Bibliography:

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7. Kutafin, Fadeev Municipal law of the Russian Federation: Textbook.-M.: Yurist, 2003.-552 p.

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