Local budget

The local budget is a centrally formed financial fund of the municipal formation, as well as the process of its formation, formation, approval and execution. Control over its implementation is carried out by local authorities independently. The composition of the estimate may include the costs of individual territories and settlements that are not municipal entities.

The local budget is formed at the expense of legally fixed sources for each level. The budget funds receive local taxes, deductions transferred by state authorities to perform certain powers, income from privatized property, leasing municipal property, subventions, subsidies, transfer payments, etc.

Relations between budgets are realized by transferring funds from the funds of some to the funds of others: the higher ones allocate targeted funds to the lower ones, and so on. The purpose of such regulation is the distribution of sources between budgets of different levels.

The local budget can include target and reserve funds, whose funds can be transferred to implement various social, environmental, economic programs, etc. Relations between budgets are regulated either by fixing them in normative acts, or by signing agreements on the division of powers between the state and regions.

Income and expenditure, which provides for the local budget, separately reflect the financing of local events and the exercise of federal powers as subjects of the Russian Federation.

Local taxes and benefits are established by local authorities independently. Replenishment of local funds is possible during referendums taking into account the opinion of the local population in the form of one-time voluntary contributions by residents of the district. The payment for the use of natural resources produced in the municipal territory also goes to local budgets. Extra-budgetary funds can be formed on the terms and in the order established by the laws of the Russian Federation.

If these sources are insufficient, the state federal bodies and authorities of the constituent entities of the Russian Federation can transfer to local self-governments other revenue sources of higher-level budgets. When assessing the minimum level of the local budget, the carryover balances of previous years are not taken into account.

Expenditures of local budgets are determined directly by local governments. They must ensure the satisfaction of the basic needs of the population at the level of social standards. The funds that should be used to fulfill state powers are provided annually in all budgets of the constituent entities of the Russian Federation. The change in these costs is controlled by federal bodies of state power. If the decision of the authorities of the higher level leads to an increase in the expenditures of the local budget, then these funds are compensated by the bodies that adopted this decision.

The state guarantees that the local budget is determined independently by local government bodies, which have the right to freely determine the directions for using these funds. The same applies to the disposal of the balances of funds formed at the end of the year. Budgetary regulation is carried out according to the minimum social standards, norms and standards of budgetary security.

The local budget in the expenditure part is divided into budgets of the current period and development. The first group includes financing capital construction, investing in large projects, spending on housing maintenance, protecting the environment, providing the educational process, health, science, culture, sports, etc. To the second - the allocation of funds to finance the costs that are required for expanded reproduction: investments in the authorized capital of enterprises, loans to support small businesses, socio-economic development of the territory, environmental programs , etc.