Subject The article studies the economic relations arising in the process of stimulating municipalities to build their own profitable potential. Objectives The paper aims to develop a mechanism to stimulate local governments to enhance the efficiency of the management of revenue sources of local budgets, the level of fiscal capacity of the municipality. The Volgograd oblast municipal formations' budgets are the case study. Methods For the study, I used the methods of comparison, analysis, synthesis, computation, and statistical information processing. Results I propose certain mechanisms to leverage the local self-governments of the RF constituent entities, and I present the results of testing of the offered technique. Conclusions I conclude that in the Volgograd oblast, there are no enabling conditions for providing financial assistance to municipalities when forming the inter-budgetary relations and providing inter-budgetary transfers. The main areas of regional authorities' affecting the local self-governments are circulars and directives on formation and subsequent fulfillment of the plan. To a greater extent, the intergovernmental fiscal transfers are aimed at the alignment of fiscal capacity and financing the local self-government's powers.
Keywords: local government, income, budget, economic potential
Gutman G.V., Miroedov A.A., Fedin S.V. Upravlenie regionalnoi ekonomikoi [Regional economic management]. Moscow, Finansy i statistika Publ., 2001, 176 p.
Inshakov O.V., Russkova E.G. [A systems approach to the study of market infrastructure]. Vestnik Volgogradskogo gosudarstvennogo universiteta. Seriya 3. Ekonomika. Ekologiya = Bulletin of Volgograd State University. Series 3. Economics. Ecology, 2002, no. 7, pp. 11–18. (In Russ.)
Rastvortseva S.N. [The essence of the socio-economic efficiency of development of the region]. Regionologiya = Regionology, 2008, no. 4, pp. 130–135. (In Russ.)
Shirokov A., Yurkova S. [Evaluation of the local authorities]. Munitsipal'naya vlast' = The Municipal Authorities,2009, no. 3, pp. 78–83. (In Russ.)
Vasil'eva M.V. [Improving the management of the region's economy through the application of techniques of comprehensive assessment of the effectiveness of public authorities and local self-government]. Upravlenie ekonomicheskimi sistemami, 2011, no. 36. (In Russ.) Available at: Link.
Zakirov I.D., Tazhitdinov I.A., Kazakov V.V. [Formation of a development strategy and the assessment of the effectiveness of municipalities]. Vestnik Tomskogo gosudarstvennogo universiteta = Bulletin of Tomsk State University,2009, no. 323, pp. 254–258. (In Russ.)
Levushkina S.V., Miroshnichenko R.V. [Ways to improve the fiscal and tax system at the municipal level]. Uchenye zapiski Rossiiskogo gosudarstvennogo sotsial'nogo universiteta = Scientific Notes of Russian State Social University, 2009, no. 6, pp. 83–87. (In Russ.)
Men'shchikova V.I. [The economic potential of the region: the terminology, structure, model]. Vestnik Tambovskogo universiteta. Seriya: Gumanitarnye nauki = Vestnik of Tambov University. Series: Humanities, 2010, vol. 84, no. 4, pp. 51–63. (In Russ.)
Gulin K.A. [On the issue of socio-economic modernization of Russian regions]. Ekonomicheskie i sotsial'nye peremeny: fakty, tendentsii, prognoz = Economic and Social Changes: Facts, Trends, Forecast,2012, vol. 22, no. 4, pp. 42–57. (In Russ.)
Kosinskii P.D., Merkur'ev V.V. [Improving the local government on the basis of the formation of agglomerations of municipalities: a regional aspect]. Problemy sovremennoi ekonomiki = Problems of Modern Economics,2013, no. 1, pp. 143–146. (In Russ.)
Tkacheva T.Yu. [Current trends to stimulate the economic activity of municipalities]. Vestnik Rossiiskogo ekonomicheskogo universiteta im. G.V. Plehanova = Bulletin of Plekhanov Russian University of Economics, 2010, no. 1, pp. 72–79. (In Russ.)
Mannapov R.G., Akhtarieva L.G. [Modern laws, principles, objectives, and mechanisms of regional governance]. Vestnik Chelyabinskogo gosudarstvennogo universiteta = Bulletin of Chelyabinsk State University,2009, no. 3, pp. 47–56. (In Russ.)
Chainikova L.N. Formirovanie sistemy upravleniya strategicheskoi konkurentosposobnost'yu regiona: monografiya [Formation of a system of strategic management of the competitiveness of a region: a monograph]. Tambov, TSTU Publ., 2010, 264 p. Available at: Link. (In Russ.)
Korostelev A.A. [The Pyramid of Goals features in the educational institution management]. Vektor nauki Tol'yattinskogo gosudarstvennogo universiteta. Seriya: Pedagogika, psikhologiya = Vector of Science of Togliatti State University. Series: Pedagogy, Psychology,2010, no. 2, pp. 67–71. (In Russ.)
Strelets I.A. Teoreticheskie aspekty i prakticheskie problemy byudzhetnogo federalizma v rossiiskoi ekonomike. V kn.: Gosudarstvo, ekonomika, obshchestvo: aspekty vzaimodeistviya [Theoretical aspects and practical problems of fiscal federalism in the Russian economy. In: The State, the economy, the society: aspects of interaction]. Moscow, MONF, Izdatel'skii tsentr uchebnykh i nauchnykh programm Publ., 2000, pp. 84–110.
Wallace E. Oates. An Essay on Fiscal Federalism. Journal of Economic Literature, 1999, vol. 37, iss. 3, pp. 1120–1149. doi: 10.1257/jel.37.3.1120