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What applies to local budgets’ own revenues? Municipal budget. Revenues of municipalities. Local budget expenditures

1) means of self-taxation of citizens in accordance with Article 56 of this Federal Law;
2) income from local taxes and fees in accordance with Article 57 of this Federal Law;
3) income from regional taxes and fees in accordance with Article 58 of this Federal Law;
4) income from federal taxes and fees in accordance with Article 59 of this Federal Law;
5) gratuitous transfers from budgets of other levels, including subsidies to equalize budgetary security municipalities provided in accordance with Articles 60 and 61 of this Federal Law, other funds of financial assistance from budgets of other levels provided in accordance with Article 62 of this Federal Law, and other gratuitous transfers;
6) income from property in municipal ownership;
7) part of the profit of municipal enterprises remaining after paying taxes and fees and carrying out other mandatory payments, in the amounts established by the regulatory legal acts of the representative bodies of the municipality, and part of the income from the provision of paid services by local government bodies 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.
2. 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 subparagraph 1 of paragraph 3 of Article 35 of this Federal Law, includes subventions provided from the budgets of city and rural settlements, included in the municipal district, to resolve issues of local importance of an intermunicipal nature, established by subparagraphs 5, 6, 12 - 14 and 16 of paragraph 1 of Article 15 of this Federal Law.
The amount of these subventions is determined by the representative body of local self-government of the municipal district according to a standard standard for all urban and rural settlements of a given municipal district per resident or consumer of budgetary services of the corresponding settlement.
3. The composition of local budgets’ own revenues can be changed by federal law only in the event of a change in the list of issues of local importance established by Articles 14 - 16 of this Federal Law and (or) a change in the system of taxes and fees Russian Federation.
The federal law providing 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.
4. The revenues of local budgets include subventions provided for the exercise by local self-government bodies 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 this Federal Law.
5. Accounting for transactions for the distribution of income from taxes and fees in accordance with the standards of deductions established in accordance with Articles 57 - 61 of this Federal Law is carried out in the manner established by the Budget Code of the Russian Federation.

A key role in the establishment of a system of independent local budgets is played by their income and the methods on the basis of which they are formed.

Own revenues ensure the principle of independence of budgets at all levels, including the state budget of Ukraine.

Own income is income that is generated in the territory under the jurisdiction of the relevant local government authority in accordance with its decisions.

Own income includes:

o local taxes and fees, payments established by local authorities;

o revenues of utility companies;

o income from property owned by local authorities, etc. Share of own income of local budgets in Ukraine

extremely insignificant, and, thus, the principle of independence of these budgets remains declared for now.

Assigned income is income that is assigned to a specific budget. Secured income is also the basis for the independence of local budgets.

Adopted in 1996. The Constitution of Ukraine does not mention the period of fixed income, but actually fixed income is reflected annually in the Law of Ukraine "On State budget Ukraine"...

Local budgets are mainly assigned to:

o local taxes and fees;

o income tax from citizens;

o corporate income tax;

o payment for a trade patent for certain types of business activities;

o payment for land;

o owner tax Vehicle and other self-propelled machines and mechanisms;

o fishing tax;

o receipts of funds from the privatization of municipal property enterprises;

o other income credited to local budgets in amounts determined by law;

o receipts of fees for environmental pollution in the part belonging to local budgets;

o receipt of deductions and fees for construction, reconstruction, repair and maintenance highways, expensive common use in the part that belongs to local budgets. This list may change annually. The main share of local budget revenues so far

constitute the so-called regulated income. This share reaches 75

85 percent.

Regulated revenues are revenues that are distributed between different levels of the budget system.

The list of regulated revenues of local budgets is clarified in the process of adopting annual laws on the State Budget of Ukraine.

The main regulated incomes include:

o value added tax;

o corporate income tax (except for those that are municipally owned);

o excise duty;

o personal income tax;

o payment for land.

Regulated incomes are credited to local budgets at individual rates and uniform deduction standards.

Expenditures of local budgets. Free budget funds

An important role in the formation of budgets of independent local budgets is played by the order of expenditures and the composition of these expenditures.

Funds from the republican budget of the Autonomous Republic of Crimea and local budgets are spent only for the purpose and within the limits approved by the Verkhovna Rada of the Autonomous Republic of Crimea and local councils.

Expenses of all budgets are divided into:

o current expenses are expenses from budgets to finance the network of enterprises, institutions, organizations and bodies that operates at the beginning budget year, as well as to finance measures for social protection of the population, etc. As part of current expenditures, budget expenditures “due to the growth of the network of only the listed objects” are separately allocated;

o development expenses are budget expenditures to finance investment and innovation activities. This is also financing capital investments production and non-production purposes, structural restructuring of the national economy and subventions and other expenses associated with expanded reproduction.

The following expenses are made from the republican budget of the Autonomous Republic of Crimea and local budgets:

o to finance institutions and organizations of education, culture, science, healthcare, physical culture, youth policy, social security And social protection the population that is subordinate to the executive authorities of the Autonomous Republic of Crimea, regions, cities of Kyiv and Sevastopol, as well as social and cultural events in accordance with the functions assigned to these authorities;

o for financing enterprises and economic organizations, which are part of the local economy, as well as environmental measures;

o for other activities financed in accordance with the legislation of Ukraine from the republican budget of the Autonomous Republic of Crimea and local budgets. If Priyu executes the local budget, the level of his

deficit exceeds the established one or there is a significant decrease in revenues from revenue sources, the Verkhovna Rada of Ukraine, the Verkhovna Rada of the Autonomous Republic of Crimea, local councils, on proposals from the Cabinet of Ministers of Ukraine, the Government of the Crimean Autonomy and the executive bodies of local councils, respectively, decide on the introduction of a proportional reduction in the approved budget expenditures. Proportional reductions in expenses are carried out monthly until the end of the budget year for all budget items except protected ones, the list of which is determined accordingly by the council.

In addition, local budget expenses are divided into:

o expenses incurred by local governments for the needs of territorial communities (their size and target direction are determined by the local budgets of these communities)

o expenses associated with the implementation by district and regional councils of activities to ensure the common interests of territorial communities (determined by the relevant regional and district budgets)

o costs associated with the use of local government’s own powers;

o expenses associated with the implementation of powers delegated by law to executive authorities.

Free budget funds are formed in local budgets at the beginning of the budget year and are not taken into account when approving the budget current year. These include:

o free balance of funds;

o amounts additionally received during budget execution;

o the amount of excess of income over expenses in the event of an increase in income or savings in expenses or from other sources.

Free budget funds cannot be withdrawn by higher-level state executive authorities. The decision to use them is made by local state executive authorities or local governments. These decisions are approved by the relevant councils.

Free budget funds can be used for:

o economic activities;

o purchase of shares or other securities;

o provision of interest-bearing or interest-free budget loans;

o other events.

To the own income of local budgets in accordance with Art. 55 of the Federal Law "On general principles organizations of local self-government in the Russian Federation" includes funds for self-taxation of citizens; income from local, regional and federal taxes and fees; gratuitous transfers from budgets of other levels, including subsidies for equalizing the budgetary provision of municipalities, other means of financial assistance from budgets of other levels and other gratuitous transfers; income from property in municipal ownership; 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 local government bodies and municipal institutions paid services remaining after paying taxes and fees; fines, the establishment of which is within the competence of local government bodies by federal law; voluntary donations; other revenues in accordance with federal, regional laws and decisions of local governments.

In order to replenish the revenue side of local budgets, representative bodies of local self-government have the right to:

In accordance with the legislation of the Russian Federation, make decisions on establishing rates of local taxes and fees, and on making changes to the procedure for its payment. Decisions made subject to official publication at least one month before their entry into force

As stated in paragraph 2 of Art. 1 of the Tax Code of the Russian Federation, “regulatory legal acts of local government bodies on local taxes and fees are adopted by representative bodies of local government in accordance with this Code.”

It should be noted that the concept of “establishment of local taxes and fees” is used by the legislator in two meanings:

In a narrow sense, this is the definition in regulatory legal acts of representative bodies of local self-government of certain elements of taxation (clause 4 of article 12 of part one of the Tax Code of the Russian Federation);

In a broad sense, this concept includes: a) selection from the existing legislative list of the most economically significant local taxes and fees for the corresponding territory; b) an independent decision of a representative body of local self-government to introduce this tax on the territory of the municipality; c) specification in a normative legal act of the provisions of tax legislation - determination of the essential elements of taxation: tax rates within the limits established by the Tax Code of the Russian Federation, tax benefits, as well as the procedure and deadline for paying taxes and fees. Municipal bodies, exercising their rights in the field of taxation, not only establish (within the limits of their powers), but also enact specific types of local taxes and fees, defining in a resolution or decision the exact date from which these taxes (fees) are considered established and may be collected on the territory of the relevant municipality.

The competence of representative bodies of local self-government also includes the organization legal regulation collection of local taxes and fees by establishing regulations the procedure and timing of their payment.

So, the main link of the system municipal finance are local budgets. Local budgets (budgets of municipalities) constitute the third level of the budget system of the Russian Federation.

The presence of a budget strengthens the economic independence of local governments, contributes to the activation economic activity and development of the infrastructure of the relevant territories.

From point of view economic theory The local budget should be considered as a "totality economic relations, contributing to the territorial redistribution of the country's national income, ensuring the creation financial base local authorities."

Local budgets are characterized by:

A wide sphere of influence, since budgetary relations permeate all aspects of the territorial reproduction process;

A high degree of effectiveness due to the redistributive nature of this economic category;

Flexibility because the system budget methods management is formed not as a given once and for all, but as a dynamic one, constantly developing depending on the goals and objectives of territorial development.

The local budget includes revenue and expenditure parts.

According to Art. 6 of the Federal Law "On financial fundamentals local government in the Russian Federation" the revenue part consists of its own income and revenues from regulatory income, it may also include financial assistance in various forms(subsidies, subventions, funds from the financial support fund for municipalities), funds for mutual settlements.

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;

Non-tax income provided for in paragraph. 2 - 5 p. 4 tbsp. 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 the standards for contributions (in percentage) to local budgets for the next fiscal year, as well as on a long-term basis (at least 3 years) for different types such income.

Tax revenues of municipal budgets are:

Own income from local taxes and fees, determined tax legislation RF;

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. 52, 58 and 63 BC of the Russian Federation;

State duty, with the exception of that charged 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.

Non-tax revenues of local budgets are taken into account and formed in accordance with Art. 41 - 46 of the Budget Code of the Russian Federation, including at the expense of part of the profits of municipal unitary enterprises remaining after paying taxes and other obligatory payments - in the amounts established by legal acts of local government bodies.

Other own revenues of local budgets include:

Income from privatization and sale of municipal property;

At least 10% of revenues from privatization state property located on the territory of a municipal entity, carried out in accordance with state program privatization;

Income from the rental of municipal property, including rent 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;

Income from municipal cash and clothing lotteries;

Fines subject to transfer to local budgets in accordance with federal laws and laws of constituent entities of the Russian Federation;

State duty established in accordance with the legislation of the Russian Federation.

The Federal Law “On the General Principles of the Organization of Local Self-Government in the Russian Federation” provides for the right of local government bodies to receive payments for the use of natural resources and the participation of local government bodies in credit relations (Articles 40, 42).

Municipal budgets are also replenished from income from the use of municipally owned property and from paid services provided by local governments and budgetary institutions under the jurisdiction of local government.

Financial assistance to a municipal formation from the budget of another level of the budget system of the Russian Federation is provided in the form of grants and subventions and is subject to accounting in the revenues of the local budget, which is the recipient of these funds.

Subsidies are funds provided to local budgets from the federal budget and 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 are funds allocated from the federal budget or the budget of a constituent entity of the Russian Federation on a free and non-refundable 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 natural Disasters and so on.

Grants, subventions, as well as borrowed funds play the role of auxiliary sources of income for local budgets. At the same time, in practice, subsidies serve as a means of covering the local budget deficit, and subventions affect both the volume and structure of local budget expenditures.

Borrowed funds may be intended to cover expenses exceeding the minimum budget or to eliminate financial difficulties in the process of executing the approved budget.

Executive bodies of local self-government, by decision of representative bodies, have the right to issue municipal loans for investment purposes and receive loans - budget funds provided from other budgets on a repayable, gratuitous or reimbursable basis for a period of no more than six months within a financial year.

Local governments independently manage funds from local budgets. The amount of excess revenues over expenses of local budgets based on the results of the reporting year is not subject to withdrawal by federal government bodies or government bodies of the constituent entities of the Russian Federation.

Revenues from local budgets can be transferred to budgets of other levels at rates (standards) determined by legal acts of local governments (Article 63 of the Budget Code of the Russian Federation).

At the same time, the revenue and expenditure parts of local budgets separately provide for the financing of measures to resolve issues of local importance and the exercise by local governments of certain federal powers and the powers of the constituent entities of the Russian Federation.

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-taxation funds are used exclusively for intended purpose. Local government bodies inform the population of the municipality about their use (Article 39 of the Federal Law “On the General Principles of the Organization of Local Self-Government in the Russian Federation” and Clause 3 of Article 8 of the Federal Law “On the Financial Basis of Local Self-Government in the Russian Federation”).

The financial resources necessary for the implementation by local self-government bodies of certain state powers are annually provided, respectively, in the federal budget and in the budgets of the constituent entities of the Russian Federation.

An increase in expenses or a decrease in revenues of local governments that arose as a result of decisions made by federal government bodies or government bodies of constituent entities of the Russian Federation are compensated by the bodies that made the decisions. The amount of compensation is determined simultaneously with the adoption of the relevant decision. Decisions of public authorities entailing additional expenses local government bodies are implemented by local government bodies within the limits of the funds transferred to them as compensation (Article 38 of the Federal Law “On the General Principles of the Organization of Local Self-Government in the Russian Federation”).

Violation of the principle of balancing the local budget gives rise to its deficit. Sources of financing the local budget deficit can be internal sources in two main forms:

Municipal loans carried out by issuing securities on behalf of the relevant municipality;

Loans received from credit institutions(Article 96 of the Budget Code of the Russian Federation).

The totality of debt obligations of a municipality can exist in the form of:

Loan agreements and contracts concluded by municipalities;

Loans from a municipal entity (municipal loans), carried out by issuing securities on behalf of the municipal entity;

Agreements on the provision of municipal guarantees, municipal guarantee agreements to ensure the fulfillment of obligations by third parties;

Debt obligations of legal entities converted into municipal debt on the basis of legal acts of local governments.

Debt obligations of a municipality are repaid within a time frame that is determined by the terms of borrowing and cannot exceed 10 years (Article 100 of the Budget Code of the Russian Federation).

Contractual relations arising in connection with the provision of municipal guarantees are regulated by the provisions of Art. 115 and 117 BC of the Russian Federation.

In accordance with Art. 41 of the Federal Law “On the General Principles of the Organization of Local Self-Government in the Russian Federation”, representative bodies of local self-government have the right to form special-purpose extra-budgetary funds in the manner and under the conditions established by the legislation of the Russian Federation. However, it is important to note that according to Art. 10 BC RF creation off-budget funds is possible only at the level of the Russian Federation and its constituent entities. The third level of the budget system may include only local budgets.

The expenditure portion of local budgets includes:

1) expenses associated with resolving issues of local importance, established by the legislation of the Russian Federation and the legislation of the constituent entity of the Russian Federation;

2) expenses associated with the implementation of certain state powers transferred to local governments;

3) costs associated with servicing and repaying debt on municipal loans;

4) costs associated with servicing and repaying municipal debt on loans;

5) allocations for insurance of municipal employees, municipal property, as well as civil liability and business risk;

6) other expenses provided for by the charter of the municipality.

The procedure for executing the expenditure portion of the local budget is established by the charter of the municipality or other legal act of the local government body.

Placement of a municipal order for the performance of work (provision of services), financed from the local budget, is carried out on the basis of an open competition, the rules of which are established by the representative body of local government. The customer under a municipal order for the performance of work (provision of services) financed from the local budget is the authorities or officials local government.

The volume of assigned income is associated with the amount of primary expenses (social and domestic infrastructure). In cities it is 55-60% of all expenses. An increase in local budget expenditures with insufficient growth in the volume of fixed revenues leads to an increase in the share of regulatory sources (in city revenues - 75%, in districts - 90%). Such a strict dependence of local budgets on higher authorities undermines the principle of independence of local governments in the financial sector.

In the budgets of cities of regional subordination, the main expenses fall on the national economy (primarily housing and communal services) and social and cultural events (primarily education and healthcare). In district budgets, the main item of expenditure is social and cultural events; the share of expenditures on the national economy is about 25%, almost 20% of expenditures go to finance intraregional transfers (mainly to lower budgets).

In the budgets of cities of regional subordination, the share of national economic expenditures is again increasing, and they consist of almost 100% of housing and communal services costs. The share of expenditures on social and cultural events continues to increase (at the expense of allocations for education). Expenditures on intraregional transfers are practically disappearing (here, as in village and budgets, they are represented by insignificant funds transferred to higher budgets in the manner of mutual settlements).

In village budgets, two thirds of budget expenditures go to social and cultural events (half of them to education). Expenditures on the national economy are represented by allocations to housing and communal services.

Finally, in budgets, expenditures on socio-cultural needs account for three quarters of total expenditures (expenses on education lead by a wide margin, maximum values reaches the share of expenditures in culture and art); the share of national economic (housing and communal services) expenses is minimal.

It is clear that such proportions are a reflection of the distribution of spending powers between the levels of the budget system. The share of national economic expenditures is highest in the budgets of cities of regional and district subordination (mainly due to the support of subsidized housing and communal services). The role of actual production costs (in industry and economy) is relatively large only in regional budgets. Socio-cultural expenditures (primarily on education) dominate budgets. Regional and district budgets perform the functions of “redistributors” of resources between lower-level budgets, and therefore they have a high share of expenses for intraregional transfers.

The mechanism for financial support for the implementation of budget expenditure policy can be considered effective if it complies to the maximum extent with the following principles:

1) adequacy of the allocated funds to the result obtained (means, firstly, that when determining the method of financial support, the preferable one will be the one that will make it possible to verify the availability or possibility of achieving the result and the corresponding quality before paying for the result; secondly, if there are other interested parties in obtaining results, authorities should encourage them to co-finance expenses);

2) adequacy of financing (means that the allocated financial resources fully correspond to the amounts indicated in contracts or approved in the form of limits on budgetary obligations);

3) timeliness and regularity of financing (this principle means financing in accordance with the terms of the contract);

4) financing efficiency (involves choosing the option that will provide the lowest budget costs, taking into account not only the costs of a given contract or program, but also costs that may arise in future periods);

5) openness and transparency of the financing mechanism (assumes that the allocation budget funds accessible for assessment and control both by regulatory authorities and by the entire society, which allows timely appeal against the actions of officials who violate the rights of other participants in the budget process).

Having analyzed the methods of financial support for the implementation of budget expenditure policy, the work identified the specifics of each of the methods, which affects the effectiveness and efficiency of budget expenditures (Table 1).

Table 1. Characteristics of methods of financial support for the implementation of the budget expenditure policy of the municipality

Criteria

Acquisition

Estimated financing

Subsidization

1. In terms of performance

1.1. Certainty of the result

The result of financing is defined, its characteristics are clearly formulated

The characteristics of the result are specified, but the price and volume of paid services are unknown in advance

The result is determined qualitatively and quantitatively, but the price of the result may vary

1.2. Distribution of risks for achieving results

If the quality of the result is inadequate, payment will not be made. The risk is borne by the seller, not the buyer

All risks for failure to obtain a result or its increase in cost are borne by the authorities

Vicarious liability of program participants. Authorities bear risk only within a certain result in accordance with the share of funding

1.3. Control over the results

Preliminary (control until funds are allocated), external (government authorities controlling the supplier) control

Subsequent, internal control(authorities control subordinate institutions)

Combination of internal and external control. Preliminary - at the stage of allocating funding in part; afterbirth. - at the stage of acceptance of work

1.4. Consequences of not achieving results

Refusal to pay for the transaction. Recovery of damages for non-fulfillment of a contract

Poor quality or lack of results does not affect funding

Financing may be terminated at an interim stage. Treasury losses correspond to the state share. Financing

2. In terms of efficiency

2.1. Possibility of comparison result prices with existing

You can compare the price on the market

It is impossible to compare the price, because... even one-piece institutions provide different quantities services or have significant features

Can be compared with existing analogues, but cost factors should be taken into account

2.2. A person interested in reducing costs

The supplier is interested in reducing costs, since he can only receive a contract if he can offer the minimum price

Lack of interest in reducing costs

With shared subsidies, authorities and other investors are interested in reducing costs, which is not the case with full subsidies, where the released funds cannot be used for other purposes.

2.3. Consequences of inefficiency (inflated costs)

Cancellation of the deal, choosing another supplier

Funding is not dependent on economic efficiency.

With full subsidization, authorities independently determine the amount of subsidies. When sharing subsidies, authorities bear joint and several losses

So, municipal financial resources are formed from funds received by the municipal budget and funds accumulated by municipal extra-budgetary funds.

The municipal budget is the main financial instrument, which is used by local authorities to solve the tasks assigned to them. Most municipal budget expenditures are distinguished by their social orientation. However, funds for financing education, health care and other social significant articles spending in most municipalities is clearly insufficient. At the same time, the local budget deficit is due to low level tax base, and is also predetermined by the imperfection of legislation at the federal and regional levels within the framework of regulating interbudgetary relations.

Efficiency of use financial resources municipal formation is determined by the following principles: adequacy of allocated funds to the result obtained; adequacy of financing; timeliness and regularity of financing; openness and transparency of the financing mechanism.

Possible composition own sources local budget revenues are determined by the legislation of the Russian Federation. The revenue part of local budgets consists of their own income and revenues from regulatory revenues; it can also include financial assistance in various forms from higher levels of government, funds for mutual settlements, as well as the unspent balance of budget funds for the last financial year.
Financial assistance from other budgets is subject to accounting in the local budget, which is the recipient of the funds, but is not considered the own income of local budgets. Providing financial assistance from the budget of a constituent entity of the Russian Federation to the local budget can be provided in the following forms:
- provision of financial assistance from the funds for financial support of municipalities of the constituent entities of the Russian Federation, created in the budgets of the constituent entities of the Russian Federation, to equalize the level of minimum budgetary provision of municipalities in order to ensure financing of minimum state social standards, the responsibility for financing of which is assigned to local governments;
- provision of subventions to finance certain targeted expenses.
A municipal entity that is a recipient of financial assistance from the budget of a constituent entity of the Russian Federation to equalize the level of minimum budgetary provision does not have the right to:
- place municipal employees, financed from the local budget, in Better conditions in comparison with civil servants of institutions of the constituent entities of the Russian Federation;
- provide budget loans legal entities in an amount exceeding 3% of local budget expenditures;
- provide municipal guarantees in an amount exceeding 5% of local budget expenditures.
Regulatory income includes federal and regional taxes and other payments, for which standards for contributions to local budgets for various types of such income are established for a certain period. The deduction standards are determined by the law on the budget of that level of the budget system of the Russian Federation, which transfers regulatory revenues, or by the law on the budget of that level of the budget system of the Russian Federation, which distributes the regulatory revenues transferred to it from the budget of another level.
The amount of provided tax credits, deferments and installments for the payment of taxes and other obligatory payments to the budget is fully taken into account in local budget revenues.
Own income includes local taxes and fees, shares of federal taxes and shares of taxes of constituent entities of the Russian Federation assigned to local budgets on an ongoing basis, income from the use and sale of property in municipal ownership, income from paid services provided by local governments and budgetary institutions under the jurisdiction of local governments, fines, confiscations, compensation, as well as funds received in compensation for damage caused to municipalities, income from municipal cash and clothing lotteries, etc. The local budget also receives allocations to finance certain delegated state powers, federal laws and laws of the constituent entities of the Russian Federation, as well as other non-tax revenues, such as at least 10% of income from the privatization of state property located on the territory of the municipality, payments for the use of subsoil and natural resources, established in accordance with federal legislation and etc.
From the perspective of municipal government, it is also advisable to use the classification of income into permanent and non-permanent income. Constant funds consist of taxes and fees regularly levied in favor of the municipality, a significant part of revenues from services municipal services, rent from the use of property, rent payments for the use of subsoil and natural resources, etc. Non-permanent funds of a municipality include borrowed funds received by local communities to finance investment expenses.
In the budget, local community funds are classified into functional and investment income. Revenues contributed to the functional part of the local budget are used to cover the corresponding expenses of the functional part of the budget. The excess of functional revenues over functional expenses represents an independent source of income for the investment part of the local budget. Actually, investment revenues of local budgets represent income intended to finance capital investments. They are included in the income of the investment part of the local budget. Investment revenues are divided into three categories of funds: deductions from the income of the functional part of the local budget, loans and government subventions. As a rule, tax revenues included in the income items of the investment part of the budget in practice are not of great importance, since they represent income items of the functional part of the local budget. However, some types of tax revenues often have a targeted investment nature. So, remedies for land tax may be used to pay for capital costs to increase the fertility of municipal agricultural lands.
Representative bodies of local self-government can introduce local taxes and fees, set rates for them and provide benefits for their payment within the limits of the rights granted by the tax legislation of the Russian Federation. Amendments and additions to the legal acts of representative bodies of local self-government on local taxes and fees, assuming their entry into force during the current financial year, are allowed only if appropriate changes and additions are made to the legal act of the representative body of local self-government on the local budget for current financial year. Decisions made are subject to official publication at least one month before they enter into force.
Legal acts of representative bodies of local self-government on the introduction of changes and additions to tax legislation within the competence of local government bodies, which come into force from the beginning of the next financial year, must be adopted before the approval of the local budget for the next financial year.
If necessary, the population of a municipal entity can directly make decisions on one-time voluntary collections of funds from citizens in accordance with the charter of the municipal entity. Funds collected may be used exclusively for their intended purpose. Local governments are obliged to inform the population of the municipality about the use of collected funds.
Despite the large number local revenues, however, they cannot be considered interchangeable. The following basic principles of their use can be distinguished:
- to the extent possible, taxes and revenues from payments should be used to finance current expenses and only in some cases for capital expenses;
- it is advisable to use subsidies, loans, taxes to finance capital expenditures; it is undesirable to use them for capital expenditures.
These principles of financing capital and current costs stem from the value judgment that citizens living in the territory of a given administrative unit should cover the Costs only of those functions of local authorities that they need, and should not reimburse them if these functions are necessary for them. Not needed. Therefore, when deciding on financing a particular project, it is especially important to assess the useful life of these assets.
Long-term borrowings are suitable for local government capital expenditure purposes. This happens because capital expenditures will satisfy the needs of the population for a long time, and repayment of the loan and payment of interest on it will also be carried out from tax funds for a long time.
The use of loans to pay off the operating costs of local governments is undesirable, since such a policy leads to living citizens shifting the burden of payments onto future generations, who, unlike them, will no longer be able to benefit from these loans. If borrowing is used to pay for current expenses, the latter may become excessive as the population may be tempted to vote for more high level expenses for which they will not have to pay during their lifetime.
Current taxes and fees are of little use for local government capital expenditures from the point of view that citizens will be forced to bear the full burden of costs for services that will only benefit future generations. If taxes and fees are used for capital expenditures, these expenditures may be too small because the public may not be willing to fully pay for projects that have little direct benefit.
However, there are cases where loans are an acceptable source of financing current expenses.
Local government expenditures typically follow a fairly stable schedule throughout the year, but the flow of local government revenue may be less regular and dependent on a variety of factors. In general, throughout the year you should either balance your assets and liabilities in your current accounts, or have a small positive balance in order to cover capital expenditures. Therefore, short-term loans practiced by local authorities to compensate for irregular payments are fully justified.
In addition, from time to time the local government has to incur unforeseen expenses. For example, compensation for damage from an epidemic, major fire, accident and other disasters. A serious emergency may require significant unanticipated police costs to maintain order.
Such emergency expenses can be financed through the use of emergency means. Of course, from a financial point of view, financing would be optimal emergency expenses at the expense of specially accumulated funds, but in conditions of constant budget deficits of most municipalities and fairly high inflation, in practice this method is used infrequently. In addition, the creation of such funds means a reduction in funds allocated for current social expenditures, which is not always acceptable. It seems more appropriate to create special funds at the level of a subject of the Federation or at the level of an association of municipalities, provided that the funds collected at the expense of municipalities will be provided to the latter in the form of non-refundable subventions when the need for emergency expenses arises. Unfortunately, at present, this method is difficult to implement in practice due to the insufficient volume of local government revenues and the large volume of emergency expenses.
In addition, if there are not enough funds in the funds to finance the entire required volume of emergency expenses, the procedure for redistributing resources can cause many conflicts and disputes. Perhaps a way out of the situation could be for the subject of the Federation to borrow the required amount of financial resources from the market. The cost of such fundraising would be lower than if municipalities borrowed on their own. However, it should be taken into account that the participation of local governments in such funds can only be voluntary.
Another emergency source may be the sale of municipal property, but from the point of view of effective municipal policy, this method can only be recommended if highly liquid property is alienated or securities, which were purchased specifically for the purpose of their further resale. The sale of part of the necessary municipal property for the purpose of acquiring other municipal property is irrational, including because the urgent sale of insufficiently liquid property is almost always carried out at a price below the market price.
If local governments do not have the authority to immediately increase tax rates, and higher levels of government have not provided the necessary assistance, the only option left is to borrow money to cover unexpected expenses.
When using loans for these other purposes, it should be taken into account that an increase in the share borrowed money in the local budget leads to a significant increase in risks associated with changes in market conditions. In addition, most loans and credits are issued under strict conditions of compliance with the principal repayment scheme and regular payment percent. Such restrictions reduce operational management capabilities financial flows municipal formation, since they are forced to primarily direct income to fulfill obligations to creditors, and not to the population.
Efficient financial policy in a municipality will be difficult if local authorities do not have the ability to independently and flexibly use local taxes. Local taxes allow you to regulate the quantity and quality of services provided depending on your wishes local population, by changing the amount of revenue, adjusting tax rates. If local authorities rely solely on receiving subsidies, then funds may be spent ineffectively, and responsibility for poor-quality services will be shifted to higher levels of government for supposedly insufficient funding. Local politicians, officials, and voters typically spend funds raised locally much more carefully than funds received from outside.
Local authorities are responsible for the development of local infrastructure. It is obvious that such arrangement has a beneficial effect on business activity in developing areas, and therefore, for the purpose of ensuring development, it is often more rational to introduce a fee for the development of territories by making one-time payments, for example, by establishing a fee for improvement, than to use loans or tax revenues, the fee will become a payment for the initial capital investment. It may seem that the introduction of such a fee shifts all the costs of development to those enterprises that initially carried out their activities, but in fact, the costs of development will be reimbursed to the owners through an increase in the value of their property as a result of the development of the territories.
At the same time, it is important to set fees in such a way that the use of different development fees for different areas does not hinder the development of new areas and does not redirect business activity to those areas where lower development fees are established. One solution could be to use increased development fees for newly opened enterprises in already developed areas.

Own revenues of local budgets

Own revenues of local budgets - in the Russian Federation - tax and non-tax payments assigned to local budgets in whole or in part on an ongoing basis by federal laws or laws of constituent entities of the Russian Federation, as well as introduced by representative bodies of local self-government in accordance with the legislation of the Russian Federation and sent to local budgets.

See also: Municipal budgets

  • - A bill issued to a local authority in the UK...

    Financial Dictionary

  • - regional and local taxes and fees, deductions from taxes of higher budgets, transferred to regional and local budgets on an ongoing basis in a firmly fixed...

    Financial Dictionary

  • - “... consists of own income and revenue from regulatory income, it may also include financial assistance in various forms, funds for mutual settlements...” Source: the federal law from 25.09...

    Official terminology

  • - in the Russian Federation, the process of distributing income and redistributing funds between budgets of different levels in order to equalize the revenue base of local budgets, carried out taking into account the state minimum social...

    Large legal dictionary

  • - in the Russian Federation - own income and income from regulatory income. The income portion may also include financial assistance in various forms, funds for mutual settlements. See. also: ...

    Financial Dictionary

  • - in the Russian Federation - local taxes, fees and fines, deductions from federal taxes and taxes of constituent entities of the Russian Federation in accordance with the standards established by federal laws and laws of constituent entities of the Russian Federation. See. also: ...

    Financial Dictionary

  • - in the Russian Federation - - local budgets’ own tax revenues from local taxes and fees, determined by the tax legislation of the Russian Federation...

    Financial Dictionary

  • - "...2...

    Official terminology

  • - "...1...

    Official terminology

  • - "...1...

    Official terminology

  • - "...1. Tax revenues from the following regional taxes are subject to credit to the budgets of the constituent entities of the Russian Federation: tax on property of organizations - according to the standard of 100 percent...

    Official terminology

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    Official terminology

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    Official terminology

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    Official terminology

  • - "...1. includes: 1) costs associated with resolving issues of local importance established by the legislation of the Russian Federation and the legislation of the subject of the Russian Federation...

    Official terminology

  • - in the budget legislation of the Russian Federation, federal and regional taxes and other payments, which establish standards for contributions to the budgets of constituent entities of the Russian Federation or local budgets for the next financial year, as well as for...

    Large legal dictionary

"Own revenues of local budgets" in books

30. Local budget revenues

From book Budget system RF author Burkhanova Natalya

30. Revenues of local budgets Tax revenues from the following taxes are credited to the budgets of settlements: 1) from local taxes: a) land tax; b) property tax for individuals; 2) from federal taxes and fees: a) personal income tax; b) single

35. Local budget revenues

From the book Budget Law author Pashkevich Dmitry

35. Revenues of local budgets The list of revenues of local budgets is established by Art. Art. 61, 61.1, 61.2, 62 BC RF. At the same time, tax revenues of local budgets differ depending on the form of municipalities. Thus, the budgets of settlements in in full income from

36. Expenditures of local budgets

From the book Budget Law author Pashkevich Dmitry

36. Expenditures of local budgets Reasons for occurrence expenditure obligations municipalities are enshrined in Art. 86 BC RF. Such grounds, according to the provisions enshrined in the said article of the Budget Code of the Russian Federation, are: 1) adoption of regulatory legal acts of bodies

Question 4 Expenditures of the budgets of the constituent entities of the Russian Federation and local budgets

From the book Budget System of the Russian Federation author Fedosov Vitaly Anatolievich

Question 4 Expenditures of the budgets of the constituent entities of the Russian Federation and local budgets Increasingly important in economic development countries, solving social issues is given to the constituent entities of the Russian Federation. Accordingly, the requirements for financial support powers of authorities

author Team of authors

Article 47. Own revenues of budgets Own revenues of budgets include: tax revenues credited to budgets in accordance with the budget legislation of the Russian Federation and legislation on taxes and fees; non-tax revenues credited to budgets in

From the book Budget Code of the Russian Federation. Text with changes and additions for 2009 author Team of authors

Chapter 9. LOCAL BUDGET INCOME Article 60 Lost

From the book Budget Code of the Russian Federation. Text with changes and additions for 2009 author Team of authors

Article 62. Non-tax revenues of local budgets Non-tax revenues of local budgets are formed in accordance with Articles 41, 42 and 46 of this Code, including from: income from the use of property owned by municipal property, with the exception of

From the book Budget Code of the Russian Federation. Text with changes and additions for 2009 author Team of authors

Article 168. Assignment to bodies Federal Treasury functions for the execution of budgets of the constituent entities of the Russian Federation and local budgets Higher executive bodies state authorities of the constituent entities of the Russian Federation, local administrations municipal

50. Local budget revenues

From the book Municipal Law: Cheat Sheet author author unknown

50. Revenues of local budgets The revenue part of local budgets consists of: a) from their own incomes and receipts; b) financial assistance in various forms (grants, subventions, funds from the financial support fund for municipalities), etc. To the own income of local

Chapter 9. LOCAL BUDGET INCOME

From the book Budget Code of the Russian Federation. Text with changes and additions for 2009 author author unknown

Chapter 9. INCOME OF LOCAL BUDGETS Article 60. Formation of revenues of local budgets Lost force. – Federal Law No. 120-FZ of August 20, 2004. Article 61. Tax revenues of settlement budgets (as amended by Federal Law No. 120-FZ of August 20, 2004)1. Tax taxes are credited to settlement budgets

From book New law“On education in the Russian Federation.” Text with changes and additions for 2013. author author unknown

Article 100. Target figures for enrollment in education at the expense of budgetary allocations from the federal budget, budgets of constituent entities of the Russian Federation, local budgets 1. Number of students with state accreditation educational programs average

author author unknown

Article 55. Revenues of local budgets 1. Own revenues of local budgets include: 1) means of self-taxation of citizens in accordance with Article 56 of this Federal Law; 2) income from local taxes and fees in accordance with Article 57 of this Federal Law

From the book Federal Law of the Russian Federation “On the General Principles of the Organization of Local Self-Government in the Russian Federation.” Text with changes and additions for 2009 author author unknown

Article 57. Revenues of local budgets from local taxes and fees 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. Organs

From the book Federal Law of the Russian Federation “On the General Principles of the Organization of Local Self-Government in the Russian Federation.” Text with changes and additions for 2009 author author unknown

Article 58. Revenues of local budgets from regional taxes and fees 1. Revenues from regional taxes and fees are credited to local budgets according to tax rates, established by laws subjects of the Russian Federation in accordance with the legislation of the Russian Federation

From the book Federal Law of the Russian Federation “On the General Principles of the Organization of Local Self-Government in the Russian Federation.” Text with changes and additions for 2009 author author unknown

Article 59. Revenues of local budgets from federal taxes and fees 1. Revenues from federal taxes and fees are credited to local budgets according to deduction standards in accordance with parts 2 - 4 of this article, part 2 of article 60 and part 3 of article 61 of this Federal

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