Finance and credit relations

Municipal or local finance is a set of socio-economic relations arising from the formation of the distribution and use of financial resources for solving problems of local importance. These relations are formed between local governments and the population living in the territory of a given municipality as well as economic entities. The municipal budget is the budget of the corresponding municipality, the formation of the approval and implementation of which is carried out by the local authorities ...

14. Municipal finance: concept, structure. The role of municipal finance in solving social problems of the territories.

In recent decades, in many states, increasingly, the functions of regulating economic and social processes are being transferred from the central levels of state power to territorial ones. In this regard, the role of municipal finances, as an integral part of territorial finances, is increasing, the sphere of their use is expanding.

Municipal (or local) finance- a set of socio-economic relations arising from the formation, distribution and use of financial resources for solving problems of local importance.

These relations are formed between local governments and the population living in the territory of a given municipality, as well as economic entities.

Municipal finances are implemented through the local budget, budgetary institutions, local businesses and the financial market.

Municipal budget- this is the budget of the corresponding municipality, the formation, approval and implementation of which is carried out by local authorities.

Municipal finance include:

Local budget funds;

Municipal off-budget funds;

State and municipal securities owned by local governments;

Other funds in municipal ownership.

The role of municipal finance in solving social problems of territories

The essence of municipal finance lies in the fact that they cover that part of monetary relations regarding the distribution and redistribution of the value of the gross domestic product, which is accumulated in the established amount in the hands of local governments to cover the costs necessary for the municipality to perform its functions.

Local budgets are one of the main channels for communicating the final results of production to the population. Through them, public consumption funds are distributed among individual groups of the population. To a certain extent, these budgets also finance the development of industrial sectors, primarily local and Food Industry, public utilities, the volume of products and services of which are also an important component of ensuring the life of the population.

Local budgets are important in the implementation of national economic and social tasks, primarily in the distribution of public funds for the maintenance and development of the social infrastructure of society.

Local self-government bodies independently manage local budget funds. The amount of the excess of revenues over expenditures "of local budgets based on the results of the reporting year is not subject to withdrawal by federal government bodies, government bodies of the constituent entities of the Russian Federation.

Local self-government bodies ensure the satisfaction of the basic vital needs of the population in the areas assigned to the jurisdiction of municipalities, at a level not lower than the minimum state social standards, the fulfillment of which is guaranteed by the state through deductions from federal taxes and taxes of the constituent entities of the Russian Federation.

The formation and execution of the local budget is carried out by local self-government bodies independently in accordance with the charter of the municipal formation.

Representative bodies of local self-government are endowed with the following rights:

establish local taxes and fees and provide benefits for their payment in accordance with federal laws;

in accordance with the legislation of the Russian Federation, make decisions on the establishment or abolition of local tax and collection, on amending the procedure for its payment.

Representative bodies of local self-government independently develop regulations on the budgetary process in the municipality in accordance with the general principles of the budgetary process established by federal laws and laws of the constituent entity of the Russian Federation.

The representative body of local self-government decides on the purposes, forms and amounts of long-term borrowings in the manner prescribed by the charter of the municipality.

Control over the execution of the local budget is carried out by representative bodies of local self-government.

Owner's rightsin relation to municipal finances are carried out on behalf of the population of the municipality by local self-government bodies or directly by the population of the municipality in accordance with the charter of the municipality.

Municipal finance iseconomic basislocal government, along with municipal property, property located in state property and transferred to the management of local governments, other property that serves to meet the needs of the population of the municipality.

Local governments have the right to transfer objects of municipal property for temporary or permanent use to individuals and legal entities, lease, alienate.

The procedure and conditions for the privatization of municipal property are determined by the population directly or by representative bodies of local self-government independently. The proceeds from the privatization of municipal property objects are transferred in full to the local budget.

Local governments determine the goals, conditions and procedures for the activities of enterprises, institutions and organizations that are in municipal ownership, regulate prices and tariffs for their products and services, approve their charters, appoint and dismiss heads of enterprises, institutions and organizations, hear reports on their activities.

Municipal finance is a set of social and economic relations that arise from the formation, use and distribution of financial resources in order to solve problems of a local nature. These relations arise between the population that lives in the territory of the municipality and local governments, and economic entities.

Municipal finance includes:

• - off-budget municipal funds;
• - funds from local budgets;
• - municipal and state securities that belong to local governments;
• - other funds that are in municipal ownership.
• The fundamental principles of municipal finance are:
• - financial state support;
• - the principle of independence;
• - the principle of publicity.

ESSENCE OF MUNICIPAL FINANCE (.bodytxt)

The essence of municipal finance is as follows: cash flow is material basis finance. Real money turnover is an economic process that causes the movement of value and is accompanied by the flow of settlements and cash payments. Financial resources that are a source of financing for reproduction are the object of real money turnover.

Municipal and public finances identify economic relations that are associated with the provision of centralized sources of financing for the municipal and state sectors of the economy, the most significant programs for the development of the public sector and production, institutions and organizations of the budgetary sphere, and so on. Their functioning is fully aimed at achieving universal goals for the development of a socially oriented market economy.

SYSTEM OF MUNICIPAL FINANCE

Municipal and public finances function within the boundaries of the financial state system and are directly at the central link

The system of municipal finance can be represented as the following diagram:

Finance largely depends on perfect transformations in the relationship between the various parts of the financial system. First of all, this refers to the linkages between micro finance and macro finance. Macro finance, and above all municipal and state budgets, is based on the financial prospects of enterprises. Finance greatly contributes to the achievement of the goals of the general economic development, therefore, their optimal organization is necessary. The chosen method of organization largely determines the quality side of finance. The use and distribution of funds in the state is carried out using an integrated system for managing financial flows.

MUNICIPAL FINANCE MANAGEMENT

The process of managing municipal finances is divided into three stages:
1.the financial planning process;
2. budgetary process;
3. evaluation of the results obtained.
The goals and nature of activities at each of these stages are significantly different.

REFORMING MUNICIPAL FINANCE

Defining the role of municipal finance is of particular importance in reforming the Russian economy.

Reform of municipal finance is an integral part of the overall reform of local government. The provision of municipal organizations with material and financial resources largely determines the effectiveness of local self-government. To fulfill the assigned tasks, municipalities must have sufficient and necessary financial and material resources, as well as have the right to independently manage these resources.

In accordance with the new legislation, a new budget level is allocated in the structure of the budgetary systems of the constituent entities of the Federation. The system of local budgets includes the budgets of the urban district, the budgets of settlements (urban and rural) and the budgets of municipal districts. Bodies of all types of executive power of municipalities (urban districts, municipal districts, rural and urban settlements) are endowed with expenditure and income powers enshrined in legislation.

Introduction …………………………………………………… .3

The essence and functions of municipal finance ... ... ... ... 5

Local budget ………………………………………… ... 15

Conclusion ………………………………………………… 27

List of used literature …………………… ..28

Introduction.

The municipal economy has historically stood out from the general system of the state economy in connection with the need to solve local problems related to the improvement of settlements, the development of social infrastructure and other issues of local importance.

Activities such as the construction of schools and hospitals, the organization of gas and water supply in cities and towns, the protection of public order, landscaping, etc., are classified as public goods. They are necessary for the normal life of the population, but since their production is unprofitable, the private sector cannot provide it in the required volume. The production of public goods is one of the functions of the state. However, the listed tasks cannot be effectively solved either by the central government or even by regional authorities due to their remoteness from the population. Even in relatively small states, the central authorities are not in. able to take into account the entire spectrum of needs of the population of each settlement.

For these reasons, there was a gradual formation of organized local cells that could satisfy the collective needs of the population living in a certain territory for public goods, using the sources of income at their disposal. Such management at the municipal level, carried out in the interests of the local population, is called local self-government (LSG).

Article 12 of the Constitution of the Russian Federation states: “Local self-government is recognized and guaranteed in the Russian Federation. Local self-government is independent within the limits of its powers. Local self-government bodies are not included in the system of state power bodies ”. This formulation gives the most important characteristics of the status of local self-government in a federal-type state, as well as the economic and financial-budgetary foundations for the implementation of the functions of local self-government.

Article 132 of the Constitution of the Russian Federation and the Federal Law "On general principles local government organizations in Russian Federation»Empower local self-government bodies with the right to independently form and execute local budgets.

Local self-government is carried out in settlements and territories with a status lower than the level of a constituent entity of the Russian Federation, that is, in cities, districts, townships and other settlements called municipalities, in accordance with the legislation of the constituent entity of the Russian Federation and the charters of specific municipalities.

The subjects of local self-government are determined by the Federal Law “On General Principles of Organization of Local Self-Government in the Russian Federation” and include issues of local importance, which are implemented exclusively at the local level, and certain state powers that may be vested in local self-government bodies. State powers are assigned to the local level only by federal law or by the law of a constituent entity of the Russian Federation.

Mu n community education - this is an urban, rural settlement, several settlements united by a common territory, part of settlements or other inhabited territory within which local self-government is exercised, there is municipal property, a local budget and elected bodies of local self-government.

2. The essence and functions of municipal finance.

Municipal (or local) finance - a set of socio-economic relations arising from the formation, distribution and use of financial resources for solving problems of local importance.

These relations are formed between local governments and the population living in the territory of a given municipality, as well as economic entities.

Municipal finance include:

■ local budget funds;

■ municipal off-budget funds;

■ state and municipal securities owned by local governments;

■ other funds in municipal ownership.

Municipal finance is based on the principles:

independence;

state financial support;

publicity.

The rights of the owner in relation to municipal finances are exercised on behalf of the population of the municipality by local self-government bodies or directly by the population of the municipality in accordance with the charter of the municipality.

Municipal finances constitute the economic basis of local self-government, along with municipal property, property that is in state ownership and transferred to the management of local self-government bodies, and other property that serves to meet the needs of the population of the municipality.

Under municipality l new finance , as a rule, it is understood the totality of funds that the local government has at its disposal to solve the tasks assigned to it by the state and the local population. From this point of view, municipal finance can be generated from three main sources:

1) public funds transferred to local government bodies by public authorities in the form of income sources and rights provided for by law;

2) the own funds of the municipality, created through the activities of local governments (income from the use of municipal property, fees for services, etc.), local taxes;

3) borrowed funds or a municipal loan.

The structure of municipal finance determines the independence of this municipality, since the dominance of the first or third group gives rise to dependence on the state or credit institutions. Therefore, local self-government bodies should strive to increase the sources assigned to the second group.

In modern conditions, along with the concept of "municipal finance", the concept of "local finance" is used. These concepts are used as equivalent in characterizing self-government relations. The word "municipal" comes from the Latin municipium, which literally translates as "self-governing community". Initially, such a concept as "municipality" meant in the ancient Roman state a city with the right of self-government.

Municipal finance is a system of economic (monetary) relations associated with the accumulation of a part of the value of the aggregate social product through its redistribution and use of funds in accordance with the functions assigned to local authorities and administration.

In Russia, municipal finances include the finances of cities, districts, townships and other settlements. In countries with a federal structure, municipal finances may include not only the finances of local self-government bodies, but also the finances of republican, regional, and district government bodies.

Municipal finance has a socio-economic essence, identical to national finance, and does not exist as parallel, but relate as a part and a whole, since municipal financial relations have only a narrower sphere of redistributive relations. In this regard, all the main essential characteristics of a more general category of "finance" are also characteristic of municipal finance, which are part of the financial system of the state. This also applies to the functions performed by municipal finance.

Municipal finance, as well as finance in general, performs the following functions: distribution, regulatory and control.

Municipal finance functions on the basis of the redistribution of centralized financial resources through the system of socialized funds.

Distribution function lies in the fact that the newly created value of the gross social product is subject to distribution in order to fulfill the financial obligations of the enterprise to the budget. The result of this function is the formation and use of centralized funds of funds.

Control function municipal finance lies in their ability to monitor the real money turnover, the participants of which are the state, the population, enterprises for the formation and use of centralized monetary funds.

The role and importance of municipal finances are determined by the nature of the functions assigned to local authorities and management, as well as by the administrative-territorial structure of the state and its political and economic orientation.

The implementation of financial guarantees of programs for the development of health care, education, social security, culture, as well as investments in the production and social spheres depends on the degree of provision of financial resources of the municipality.

First of all, taxes related to the regulation of socially significant activities for the population of the municipality should be assigned to local governments.

The main issues of local importance include:

Local finance, the formation and execution of the local budget, the establishment of local taxes and fees;

disposal of municipal property;

organization, maintenance and development of municipal institutions of preschool, basic general and vocational education;

organization, maintenance and development of municipal health care institutions, ensuring sanitary well-being;

organization, maintenance and development of municipal energy, gas, heat and water supply;

municipal road construction, landscaping and landscaping of the territory;

organization of utilization of household waste;

organization of funeral services and a number of others.

Appropriate financial resources are required to implement these powers. Currently, over 12 thousand municipalities are legally registered in Russia. More than 10 thousand of them have their own budget.

Although expenditure powers financed from local budgets make up 23% of the consolidated budget, it should be noted that almost 80% of general education expenditures are currently financed from local budgets, over 40% - for health care, over 80% - for the maintenance of kindergartens, over 68% - for housing and communal services. It is through local self-government bodies that the social guarantees enshrined in the Constitution of the Russian Federation are largely implemented.

municipal finance income budget

Introduction

2. The municipal budget. Municipal revenue

3. Existing problems of the formation of municipal finance

4. The effectiveness of the formation of municipal finance

4.1 Planned budget revenues of the MO "Leshukonsky municipal district" for 2008

4.2 The volume of revenues to the budget of the MO "Leshukonsky municipal district" for 2008

4.3 Analysis of the budget execution of the municipal district "Leshukonsky municipal district" for 2008

4.4 Report on the execution of volumes of revenues to the budget of the MO "Leshukonsky municipal district"

4.5 Norms of distribution of incomes to the budget of the MO "Leshukonsky municipal district" for 2008, not established by law

Conclusion

List of used literature

The budgetary system of the country is the main financial base for the activities of state authorities and local governments in the field of economic and social development of the respective territories. Relevance of the research topic term paper lies in the need to solve the problems of the formation and execution of the budgets of municipalities, through the municipal component of the law "On local self-government", to justify the revenues of the local budget. The object of the research is the local budget of the municipal formation "Leshukonsky municipal district". The subject of the research is the analysis of the effective formation and execution of the local budget.

The goal that was pursued in the implementation of this work was to consider the mechanism for the formation and execution of the budgets of municipalities, to reveal the main problems of local budgets and to formulate some proposals for their solution based on the study, analysis and generalization of the content of a number of sources. Based on the formulated goal, when performing the work, the following tasks were set:

Consider municipal finance and their formation;

Features of the formation of incomes of local budgets;

Analysis of the actual execution of local budgets (revenue side);

Problems of the development of municipal finance in modern conditions.

In practice, consider the local budget of the municipal formation "Leshukonsky municipal district";

The analysis of special literature, carried out in the course of preparing the course work, indicates that the problems of the formation and execution of municipal budgets have been in the focus of attention of both Russian and foreign specialists in the field of local self-government for several years.

Local budgets play an important role in the process of socio-economic development of Russia, providing funding for the main network of preschool institutions, schools, medical and social institutions. Studying the problems of formation and effective use budgets of municipalities, there are two directions of consideration of this issue: firstly, from the point of view of the formation of budgets directly at the local government level, and secondly, from the point of view of the authorities of a higher level. In the first case, the task facing local authorities is to maximize tax collection in order to cover the costs of activities carried out by municipalities in accordance with federal and city legislation. The task facing the higher authorities is the formation of the minimum budget of the municipality, i.e. formation of the minimum expenditure side of local budgets. That's why essential condition stability of inter-budgetary relations is the creation of an integral system for the formation of the financial base of budgets of all levels, and especially municipal budgets.

The laws adopted over the years of reforms did not create a mechanism for guaranteeing local self-government of financial independence and independence, although they all proclaim these principles and guarantee in words. Today, in this matter, Russia has not gone far from a rigidly centralized system, and even then in the direction of further infringement of the rights of local self-government. The formation of the revenue side of local budgets was carried out and continues to be carried out mainly not at the expense of their own revenues, but through deductions from regulatory revenues. And even with this in mind, local budgets are sorely lacking financial resources, and in spite of the adopted laws, the revenue side of local budgets does not decrease. specific gravity funds received in the form of financial assistance from the budgets of the constituent entities of the Federation.

In the preparation of this course work, both methodical and special economic literature, normative and legislative acts were used.

1. The concept of municipal finance modern Russia

Municipal (or local) finance is a set of socio-economic relations arising from the formation, distribution and use of financial resources for solving problems of local importance.

These relations are formed between local governments and the population living in the territory of a given municipality, as well as economic entities.

Municipal finance includes:

Local budget funds;

Municipal off-budget funds;

State and municipal securities owned by local governments;

Other funds in municipal ownership.

The local budget is the budget of the corresponding municipality, the formation, approval and implementation of which is carried out by local authorities. Since, according to the Constitution of the Russian Federation, local self-government is not included in the system of public authorities and administration, local budgets also do not belong to the system of public finance, although, of course, they constitute an integral element of the unified financial and budgetary system of the country.

The local budgets in the Russian Federation include district, city, rural, settlement budgets and district budgets in cities. The formation and functioning of the system of local budgets in the Russian Federation is regulated by four main legislative acts: the Constitution of the Russian Federation, Federal law"On the General Principles of Organization of Local Self-Government in the Russian Federation", the Federal Law "On the Financial Basis of Local Self-Government in the Russian Federation" and the Budget Code of the Russian Federation.

The financial basis of local self-government is the local budget, municipal extra-budgetary funds and other financial resources (in accordance with the current federal and regional laws). Local authorities, in accordance with their powers and within the limits established by federal legislation, could introduce their own taxes, fees, fines and other payments that are sources of financial receipts, create their own banks, insurance, investment companies, etc.

According to paragraph 2 of Art. 2 of the Federal Law of October 6, 2003 No. 131-FZ "On the General Principles of Organization of Local Self-Government in the Russian Federation" established by federal laws - the laws of the constituent entities of the Russian Federation, independent and under its own responsibility decision by the population directly and (or) through local government bodies of issues of local importance based on the interests of the population, taking into account historical and other local traditions.

According to the Constitution of the Russian Federation, local government bodies are not included in the system of government bodies (Article 12). The main tasks of local self-government bodies are to ensure the independent solution by the population of issues of local importance, as well as the ownership, use and disposal of municipal property (clause 1 of article 130). At the same time, the Constitution simultaneously proclaims the independence of local self-government within the granted powers and guarantees of the state in relation to local self-government.

Federal Law No. 154-FZ of August 28, 1995 "On the General Principles of Local Self-Government in the Russian Federation" defines the scope of competence and a list of issues of local importance under the jurisdiction of municipalities. This list can be supplemented by the legislation of the constituent entities of the Russian Federation. In addition, municipalities have the right to take for their consideration other issues that are not excluded from their jurisdiction and are not attributed to the jurisdiction of other municipalities and public authorities (clause 2, article 6).

Local finances include local budget funds, state and municipal securities owned by local governments, and other financial resources.

The concept of "local finance" is identical to the concept of "financial resources of local government". To a large extent, they are based on funds from the municipal budget.

Financial resources (financial resources) of local self-government are presented within the financial system of the state as one of its central links. It is in the financial sphere that the inextricable link between state and municipal authorities is manifested.

The general principles of the financial activities of local self-government bodies are regulated at the level of the Constitution of the Russian Federation, which establishes the basic principles of the organization and activities of society and the state and has a significant impact on the development of Russian legislation.

Generally legal regulation financial activities of local governments are carried out at the level of the Russian Federation, its constituent entities and municipalities.

State and municipal finances are an irreplaceable link in the chain. They provide material resources to all authorities at the state level and at the level of local self-government, so that they can carry out the work stipulated by legislative acts, and above all by the Constitution.

Municipal finance is a combination of economic and social relations that arise in connection with the formation of funds, their distribution, as well as their use in order to solve the problems of the municipality. They are formed between the population living in the territory included in the municipality and the self-government bodies at the place of residence.

Municipal finance consists of:

• funds of the municipality itself;
• securities (state and municipal) that belong to local government, its executive bodies;
• extrabudgetary local funds;
• other finances owned by the municipality.

The principles on which municipal finance is based are:

• publicity;
• financial support from the state;
• independence.

The owner can use municipal finances through bodies representing local self-government on behalf of the population who lives in the territory of a particular municipality. Also, the rights of owners regarding this type of finance can be exercised by the population itself, subject to the local charter.

Municipal finance, together with the property of the municipality, together with the property that the state has transferred into the possession of the local government, together with others that serve to meet the needs of the population living in the territory of a particular municipality, constitute a powerful economic basis for local government.

Persons in power and managing a municipality have the right to transfer the listed objects of ownership to legal or individuals for use (permanent or temporary), alienate, as well as lease.

The conditions for the privatization of the property of the municipality, its procedure can be established either by the population itself or independently by the bodies representing local self-government. The profits received from the privatization of those objects owned by the municipality are received in full.

The financial resources of a separate municipality are centralized in. It is formed, approved and monitored directly by the bodies representing local self-government. The local budget estimate may also contain the costs of some territories that are not part of the municipality. Local budget revenues are replenished through:

• various fees, as well as fines;
• federal taxes and taxes of subjects of the state in accordance with the norms established by the Legislation;
• funds that the state power transfers to the bodies representing local self-government in order for them to exercise state powers;
• funds received from the privatization of the property of the municipality or from its lease;
• funds from lotteries and loans;
• percent of the profits of enterprises;
• all kinds of grants, transfer payments, subventions and other funds that do not contradict the law.

Bodies representing local self-government have the right to dispose of the incoming profits at their own discretion. The government should not withdraw an amount in excess of revenues over expenditures, if any remains. It must also, through the federal authorities, provide municipalities with a minimum local budget capable of covering the minimum costs of the municipality, using constant, fixed maximum minimum local costs established by legislation on the basis of the norms of the least fullness of the budget.