Contemporary problems of budget development of regional centers

• Main Author: Mariya A. Pechenskaya
• Format: Article
• Language: English
• Published: Tatar Educational Center "TAGLIMAT" Ltd. 2020-03-01
• Series: Aktualʹnye Problemy Èkonomiki i Prava
• Subjects: economics and national economy management
• Online Access: http://apel.ieml.ru/storage/archive_articles/9951.pdf

Objective to identify the key trends in the development of regional centersrsquo budgets in 2011ndash2018 by the example of the NorthWestern federal district compared to general Russian trends. Methods system approach comparison method horizontal and vertical analysis of financial coefficients synthesis. Results territorial development plays the key role in ensuring sustainable development and improving socioeconomic indicators in the country. However it is impossible without the appropriate resource base of the authorities necessary for the implementation of strategic objectives for the territoriesrsquo development. The current system of interbudgetary relations has led to a significant reduction in the territoriesrsquo revenues and a reduction in their budget opportunities. The article identifies the key trends and current development patterns of budget systems of the NorthWestern federal district regional centers for 2011ndash2018. It is determined that the ratio of own income and gratuitous financial assistance has changed since 2014. Based on the official statistics it is proved that the key reason for changing the structure of regional centersrsquo budget revenues is the reduction of revenues from the budgetforming tax on personal income due to legislative adjustments to the mechanism for redistributing tax deductions between the levels of the budget system. The increase in the level of debt burden of the NorthWestern federal district regional centers from 33 to 52 of their own revenues was revealed. It is shown that the risk of budget reduction in the social sphere and economy financing increased due to the growing cost of servicing municipal debt which in the NorthWestern federal district regional centers increased 14 times in 2011ndash2018 while the average growth in Russia in that period was fourfold. The increase in the rate of budget expenditures centralization was revealed which was manifested in an eightfold increase in the delegated authority from higher levels to the budgets of regional centers of the NorthWestern federal district in 2011ndash2018. Scientific novelty modern patterns of budget systems development of regional centers of Russia and the NorthWestern federal district are defined and justified in particular for 2011ndash2018. Practical significance the materials of the article can be used by professors of higher educational institutions in the educational process and by researchers as a research base. Also the results of the study can be taken into account when implementing the budget process at the municipal level.