The financial basis of local governmentis the regional budget. The property and monetary rights granted to these bodies allow to compose, review, approve and, of course, execute their budget.
The regional budget is the main channel.bringing to the citizens the final result of production. It is with the help of this source that the social product is redistributed between segments of the population and administrative-territorial units. In addition to the above, this type of budget provides funding for such significant sectors as the food industry, utilities and other budget organizations. It is a kind of tool for improving the welfare of citizens.
From an economic point of view, the regional budget should perform the following functions:
- to form monetary funds involved in the financial support of the functioning of local authorities;
- to distribute these funds among the leading sectors of the economy;
- to control the financial and economic activities of subordinate organizations, institutions and enterprises.
Формирование регионального бюджета осуществляется relevant authorities and consists of the implementation of certain stages related to its compilation, approval and execution. The main components of this budget, like any other, are the revenue and expenditure parts.
The basis of the income part is made up of variousbudget receipts. In tax revenues the largest share is land tax. This type of tax is an economic tool in achieving high efficiency of land use. Also, land tax is a source of compensation for the cost part of the local budget for the development and development of new territories.
Regional budget must be supportedfixed sources of income. It is these sources that should contribute to an increase in payments, since budget expenditures tend to increase constantly. Therefore, in the budget of any region, an important role should be assigned to regulatory sources, which are funds received from higher-level budgets.
Regulatory income includes:
- interest deductions from tax revenues of higher level budgets;
- subsidies and subventions from higher budgets.
The role of regulatory income is toproviding financial resources to regional authorities, as well as this source of income serves to increase the interest of local authorities in raising funds to the higher level budget.
Often, regional budget expenditures exceedrevenues. In this case, only grants or subventions from the highest level budget can save the budget from deficit. However, these sources have no stimulating qualities and are conducive to the development of a sense of dependency among the regions.
A regional budget cannot exist withoutits expenditure part, the main focus of which is the financing of such socio-cultural institutions as health care and public education, as well as other budget organizations. At the same time, the structure of budgets of different regions differs among themselves. If in the regional, city and regional budgets, expenditures on social and cultural activities account for almost half of all expenses, in the township, village and district budgets - up to 86%.
With the growth of large cities and townsexpenses per resident increase. And this is one of the important indicators of expenditures of regional budgets. Also, we should not forget about the growing needs of residents of small cities and towns in the field of public utilities.
