Municipal Finance
State and municipal finance isAn indispensable link in the chain of the financial system. They provide material resources to all authorities at the state level and at the level of local self-government so that they can carry out the work envisaged by legislative acts, and first of all by the Constitution.
Municipal finance is a combination ofeconomic and social relations that arise in connection with the formation of funds, their distribution, as well as use to solve the tasks of the municipality. They are formed between the population residing in the territory included in the municipal formation and the local government bodies in the place of residence.
Municipal finance consists of:
- funds of the municipality itself;
- securities (state and municipal), which belong to the local government, its executive bodies;
- extrabudgetary local funds;
- Other finances owned by the municipality.
The principles on which municipal finance is based are:
- publicity;
- financial support of the state;
- independence.
Municipal finance owner canuse by means of bodies representing local self-government on behalf of the population that lives on the territory of a particular municipal entity. Also, the rights of owners with respect to this type of finance can be exercised by the population itself, provided that the local charter is observed.
Municipal finance together with propertymunicipality, together with the property that the state transferred to the authorities of local government, together with other types of property that serve the needs of the population living in the territory of a particular municipal formation, constitute a powerful economic basis for local government.
Persons in power and governingmunicipality, has the right to transfer the listed objects of property to legal entities or individuals for use (permanent or temporary), to alienate, and also lease.
Privatization of propertymunicipality, its order can be established either by the population itself or independently by bodies representing local self-government. The profit received from privatization of those objects which the municipality owns, to the local budget comes completely.
Financial resources of a separate municipalitycentralized in the local budget. It is formed, approved and controlled by the bodies directly representing local self-government. The estimate of the local budget may also include the costs of some territories that are not part of the municipal formation. Revenues of local budgets are replenished by:
- various charges, as well as fines;
- local taxes;
- federal taxes and taxes of subjects of the state in accordance with the norms established by the Legislation;
- money resources, which the state authority transfers to the bodies representing local self-government, so that they realize state powers;
- funds coming from the privatization of the property of the municipality or from leasing it;
- funds from lotteries and loans;
- percent of the profits of enterprises;
- all kinds of subsidies, transfer payments, subventions and other means that do not contradict the law.
The bodies representing local self-government,the right to dispose of incoming profits at their discretion. The state authority should not withdraw the amount exceeding the income over expenditure, if it remains. It must also, through federal agencies, provide municipalities with a minimum local budget that can cover the minimum costs of the municipality, using fixed, fixed sources of income. The minimum minimum of local expenses is established by legislation on the basis of the norms of the lowest fullness of the budget.
