Zolot'ko A.I.Institute of Distance and Open Education, Financial University under Government of Russian Federation, Moscow, Russian Federation goldrose@bk.ru 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
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