Financial Support for Sustainable Development of Russian Municipalities at the Present Stage


Abstract: For the First time, the term "sustainable development" was used in the UN environment report and meant development that meets the needs of the modern generation, without sacrificing the ability of future generations to meet their needs. Sustainability of a municipality implies its ability to maintain its development and functioning, based on self-support, self-regulation, ensuring dynamic balance, motivating economic agents to expand reproduction, increase competitiveness and improve the quality of life of the population. In Russia today, the problem of self-sufficiency of municipalities in financial terms is one of the main ones.  Budgets of municipalities receive stable deductions for only three taxes, which do not allow for full financial independence, and therefore there are additional budget revenues.  In Russia, not all municipalities are fully provided with their own finances to ensure comfortable living conditions for people, which is why the problem of financial insufficiency of municipal budgets is acute in the country.  Local budget expenditures are constantly growing due to the emergence of new problems, but they are not commensurate with the revenue part. Of course, many municipalities are trying to close the "budget holes" through subsidies, which leads to their dependence on the decision of the Federal authorities. In this article, we have considered the problems of financial support for sustainable development of municipalities today.

Keywords: municipal formation, sustainable development, local budgets, state budget, financial support, self-sufficiency of municipalities.


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