Pavelieva, N. S., Koreleva, L. P. Problems and Prospects of Strengthening Financial Self-Sufficiency of Local Budgets in the Russian Federation

Abstract: In the process of management of the economy a state institution has to seek for a compromise between centralized and decentralized powers of authority. By analyzing the experience of the RF constituents located in the Volga Federal Region, the authors put forward arguments that prove excessive centralization of powers in the sphere of budgetary and taxation policies in modern Russia. These arguments include: a large number of subsidized regions, high percentage of revenues from federal, regional regulating taxes and special taxes in local budgets against the background of insufficient independent sources such as local taxes, and a growing relative share of non-repayable receipts in the overall volume of budget revenues in urban districts. The methodological basis of research is resented by general and special methods of scientific knowledge including abstract-logical and economic-statistical methods, factor analysis and structured method, systems analysis, comparison method, grouping method and so on. At the present time the most topical issues of tax relations in Russia include excessive centralization, domination of the federal system of taxation and absence of actual leverages that could have been used by the municipal units and constituents of the Russian Federation. In conclusion, the authors offer a number of measures to reinforce the taxable base of local budgets and increase their financial self-sufficiency.

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