State and municipal finance

State and municipal finances occupy a special position in the financial structure. This is due to their specific purpose, which is the provision of state authorities and territorial management of cash. These funds are used to assist in ensuring that these bodies fulfill their functions.

State, municipal finance is a monetary relationship that is formed within the distribution process, which is caused by the formation of appropriate state and municipal bodies. These funds are directed to meet civil needs, economic regulation, financing of law enforcement and national security, management and other expenses.

State and municipal finance participate in the regulation of social phenomena, the development of priority economic sectors. With their help, the differences in the level of social and economic development of certain territories of the country are smoothed out.

State and municipal finance are formed under the influence of a number of factors.

Thus, the form of the device of power in the country is of great importance. Unitary states as a whole (in comparison with federal ones) are characterized by a higher degree of concentration of money resources at the disposal of central state bodies. In these countries, payments from regulatory revenue and central assistance are the basis for the monetary resources of administrative-territorial elements.

Within the framework of a federal state built in accordance with the principle of delineation of powers and subjects of regulation of the subject and central representative offices of power, the own revenues of the subjects assume a predominant importance. At the same time, there is a reduction in the scale of the inter-budgetary redistribution of funds.

State and municipal finances are formed in accordance with the administrative and territorial structure of the country. This is expressed in the activities of some entities in the composition of others or in the formation of territorial entities of different levels.

In accordance with the Constitution, the Krai (oblasts and other entities) and the autonomous okrugs included in their composition are equal subjects of the country. In this regard, the organization of financial resources occurs within the limits of the division of powers with both the federal center and between territorial units.

The formation of state and municipal finance is also influenced by the special status of a number of entities. In accordance with their status, territorial entities fulfill certain functions. To solve a number of tasks, additional funding is allocated, which allows individual entities to obtain financial independence.

In accordance with the principle of equality enshrined in Article 5 of the Constitution, there are no differences in the composition and scope of powers of the state bodies of the territories, republics, autonomous okrugs, regions and other elements. According to the federal legislation, for all entities there are uniform standards for deductions from fees and taxes to budgets and a single way of calculating monetary assistance.

It should be noted at the same time that for municipal units the law provides for the possibility of applying a special mode of operation. The application of a special status relative to the territorial unit of the country is associated with a number of reasons. Among them, the concentration of state security objects within the boundaries of the subject is noted, for which a special regime, the specialization of city-forming organizations on innovative, scientific and technical, scientific activities in the conditions of the research and production complex operates. The presence of a special status presupposes a greater amount of authority for local power missions and additional sources of money receipts (finances of state and municipal enterprises, for example).