Legal Encyclopedia. Letter F

FINANCIAL FRAMEWORK FOR LOCAL GOVERNMENT

It consists of local funds, which include the local budget, state and municipal securities, owned by local governments, and other financial assets.

FO MS is based on the following principles:

1) the principle of independence;

2) the principle of state financial support;

3) the principle of transparency.

Local governments are involved in the relations connected with local finance, on behalf of the population of the municipality. Population may be directly involved in this relationship.

The formation and execution of local budgets are carried out by local governments on their own in accordance with the charter of the municipality.

Local budget as the budget is another level of revenue and expenditure. The profitable part consists of:

1) own revenues;

2) revenues from regulating incomes;

3) financial assistance in the form of grants, subsidies, the fund of financial support of municipal formations;

4) means of mutual settlements.

By means of regulation of local budgets include:

1) regulations governing deductions from income;

2) grants and subventions to local budgets;

3) funds allocated from the fund of financial support of municipal formations;

4) funds received by mutual settlements from the federal budget and the budgets of the RF subjects.

The expenditure part of local budgets include:

1) costs associated with the solution of questions of local significance;

2) costs associated with the implementation of state powers transferred to bodies of local self-government;

3) costs associated with debt servicing and repayment of municipal loans;

4) costs related to the servicing and repayment of municipal debt on loans;

5) The provision for insurance of municipal officials, municipal property, liability and business risks;

6) other stipulated by the charter of the municipal formation expenses.

The order of execution of the local budget is established by the charter

municipality or other legal act of the local government.

Local governments are involved in the financial and credit relations with the financial and credit institutions with the territorial bodies of the State Tax Service of the Russian Federation and the Main Directorate of the Federal Treasury of the Ministry of Finance.