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The Role of Local Budgets and Municipal Authorities in Managing the Development of Social Infrastructure of the Region

The Role of Local Budgets and Municipal Authorities in Managing the Development of Social Infrastructure of the Region

Journal of Economic Regulation, , Vol. 11 (no. 1),

The economic nature of local budget revenues is considered as financial support for the development of the regionʼs social infrastructure. The income structure of local budgets today indicates an increase in trends towards centralization of fiscal resources, as well as in the increase in the share of inter-budget transfers in relation to taxes. The necessity of increasing the share of income (expenses) of the consolidated budget of the Volgograd region in relation to the gross regional product (GRP) is substantiated. Considering the problem of budgetary provision of social infrastructure, it is important to establish priorities between spending on social goals and on the national economy. The allocation of funds to the economy will create the prerequisites for the growth of GRP and, on the one hand, it will increase the budgetʼs ability to finance social institutions, and on the other, it will reduce budgetary stress, as it reduces the need for social protection itself. Reforming inter-budgetary relations in the Russian Federation will require establishing a balance of interests between local governments and the state. The basis of the balance of interests may be such a distribution of income that would make it possible on the ground, firstly, to exist at the expense of their own and not borrowed funds. Secondly, the budget, in conjunction with local authorities, should become a source of economic development and social infrastructure of the territory. The municipal ownership form, as well as the income received from its sale, plays a significant role in the process of generating local budget revenues. It is concluded that the fulfillment by the local authorities of the functions for financing social infrastructure should be based on the fact that each person living in this territory or an enterprise located on it bears financial obligations in accordance with their financial situation.


Keywords: fiscal policy; local budgets; tax revenues; budget expenditures; local government; social infrastructure; municipal property

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Founder: Ltd. "Humanitarian perspectives"
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