Problems and prospects of local government development

Abstract

For the solution of financial problems of local governments there is a need to overcome a lack of financial resources, identification and research of additional sources caused by vertical imbalance of the budgetary system and weak initiative at the local level. The article reveals problems of the operating system of local government development and substantiates the need for its improvement. Issues of revenue inflows and financing of local budget expenditures, as well as ways to achieve their balance based on strengthening their own revenue base, are considered. It is shown that financial resources of local governments have to be proportional to their powers. The author comes to the conclusion that in the country a strong material and financial base for the development of local government has not been formed and economic dependence of local governments on federal and regional public authorities remains; therefore, the process of transition to an autonomous model of local government cannot be considered complete.