Igonina L.L.Financial University under Government of Russian Federation, Krasnodar Branch, Krasnodar, Russian Federation LLIgonina@fa.ru
Importance Improving the balance and stability of budgets at all structural levels is an important area of perfecting the public finance management system in the Russian economy. This updates the scientific development of the problem related to ensuring the financial autonomy of municipalities and strengthening the revenue base of local budgets. Objectives The study aims to identify opportunities and limitations of municipalities' financial independence at the present stage of development of the Russian economy, and to justify the key areas to strengthen it. Methods Using the methods of situational, comparative and financial analyses, I investigated the specifics of the municipal finance system in Russia related to the fiscal reform and the local government reform, and analyzed various aspects of the financial autonomy of municipalities. Results The study has identified the downward tax revenue trend in local budgets, the increasing share of non-repayable transfers from the upper level budgets of the budget system, the deterioration of the balance of local budgets and their increased debt. I demonstrate the limitations and possibilities of municipalities' financial autonomy development, define the key vectors of its strengthening, suggest the ways to improve the revenue base of local budgets by increasing internal tax sources. Conclusions The developed conceptual model for strengthening the municipalities' financial autonomy will contribute to increasing the sustainability and long-term balance of local budgets, enhancing the efficiency and accountability of municipal finance.
Keywords: municipal finance, financial independence, municipalities, fiscal decentralization, municipal budgets
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