Home – Home – Jornals – Region: Economics and Sociology 2019 number 1

The financial independence of local self-government is the most important condition for its effective functioning. In Russia, the most of socially significant expenditures is concentrated at the level of local budgets. The purpose of this study is to analyze the main directions of the formation and use of local budgets in the Russian Federation. To achieve this goal, we accomplish the following tasks: 1) we reveal the peculiarities of the structure of gross and own budgetary revenues of local self-governments, 2) we determine specifics of tax and non-tax revenues of municipalities, 3) we describe the structure of transfers to the local budgets from higher ones. System approach, comparative analysis, analysis of the structure of the most important budget indicators in dynamics are used during the research. Economic, mathematical, statistical and balance methods are involved to solve the tasks posed in the research. The calculations performed on materials of municipal settlements in the Russian Federation have revealed features of revenue and expenditure budgeting at the local level. The results of the research can be used to study the possibilities of improving the budget policy towards budget equalization and stimulation of municipalities to strengthen their own revenue base. The theoretical and practical significance of the research consists in the possibility of using the proposed approaches in assessing the effectiveness of subfederal fiscal policy. In addition, this analysis has made it possible to characterize the budgetary situation at the municipal level regarding how sufficient the financial resources are for exercising proper and transferred powers. At present, the problems of strengthening the revenue base of local budgets and increasing the interest of local authorities in the performance of enterprises and organizations operating in their territories remain extremely relevant in the Russian Federation.