Zolot'ko A.I.Institute of Distance and Open Education, Financial University under Government of Russian Federation, Moscow, Russian Federation email@example.com ORCID id: not available
Subject This article considers the issues of financial self-sustainability of municipal entities in the context of the European Charter of Local Self-Government and municipal reform being conducted in the Russian Federation. Objectives The article aims to reveal the essence and content of financial self-sustainability of municipal entities and substantiate the method of estimation of its level. The article also aims to develop and propose a method of estimating the level of relative financial self-sustainability of local self-government bodies, which would provide sufficient confidence in the process of separating groups of municipal entities. Methods For the study, we used a systems approach and the methods of comparative and structural analyses. Results The article reveals the content of financial self-sustainability of municipal entities, the key criterion of which is the need of local budget for government aid. As well, the article proposes a method of assessing the level of relative financial self-sustainability of local self-government bodies, which ensures a greater reliability when separating groups of municipal entities. Conclusions On the basis of the key criterion, municipal entities can be identified as municipal entities that have attained full financial self-sustainability and municipalities which financial independence is incomplete or relative.
Keywords: municipal unit, financial self-sufficiency, local budget, governmental grant, own income
Tatarkin A.I., Molchanova M.Yu. [The conceptual approach to financial maintenance of self-development of territories]. Zhurnal ekonomicheskoi teorii = Russian Journal of Economic Theory, 2012, no. 4, pp. 132–138. (In Russ.)
Gutman G.V., Illarionov A.E. (Eds). Strategiya razvitiya munitsipaliteta [The development strategy of municipality]. Moscow, YURKNIGA Publ., 2003, 256 p.
Oates W.E. An Essay on Fiscal Federalism. Journal of Economic Literature, 1999, vol. 37, no. 3, pp. 1120–1149. URL: Link
Meshkova D.A., Topchi Yu.A. [Reserves and mechanisms of increase in tax income of regional and local budgets]. Ekonomist = Economist, 2017, no. 4, pp. 78–84. (In Russ.)
Pronina L.I. [Strategic planning at all levels of public power – the key to successful economic development]. Ekonomika i Upravlenie: Problemy, Resheniya, 2016, vol. 1, no. 5, pp. 11–20. (In Russ.)
Zolot'ko A.I. [Structural analysis of financial security municipal entities of the Russian Federation (on the example of the Moscow region)]. Ekonomika i Upravlenie: Problemy, Resheniya, 2014, no. 12, pp. 15–21. (In Russ.)
Turgel' I.D. [Formation of financial bases of local government: results and prospects of reforms]. Regional'naya ekonomika: teoriya i praktika = Regional Economy: Theory and Practice, 2013, vol. 11. iss. 2, pp. 18–29. URL: Link (In Russ.)
Sidorova E.N., Tatarkin D.A. [From subsidized regions into the self-developing units: dialectic of transformation]. Ekonomika regiona = Economy of Region, 2012, no. 4, pp. 39–48. URL: Link (In Russ.)
Prilutskaya I.A. [Current approaches to the assessment of the financial sustainability of the budget of municipal formation]. Nauchnyi al'manakh Tsentral'nogo Chernozem'ya, 2017, no. 2, pp. 28–32. (In Russ.)
Topchi Yu.A., Meshkova D.A. [Tax policy and its regional and municipal dimension in the Russian Federation]. Ekonomika i Upravlenie: Problemy, Resheniya, 2017, vol. 2, no. 3, pp. 141–145. (In Russ.)