Local Government Bodies In The System Of Financial And Legal Relations

Abstract

The paper uses the results of the systematic study of the role of local government bodies in the system of financial and legal functioning of municipal entities in the Russian Federation and the issues related to regulation of their activities to assert that the main function of local government bodies is the financial and legal function, which is reduced to municipal property management, municipal taxes and charges, and the local budget. The study states that second-order functions, which include the socio-legal function and the administrative-legal function, cannot be fulfilled without effective execution of the main function, since it accumulates all the financial resources of local government bodies in the form of a consolidated local budget. Most of these resources in modern practice face significant difficulties in terms of pumping up the budget revenues, which negatively affects the solution of local problems and execution of powers regulated by the Federal law On the General Principles of the Organization of Local Government in the Russian Federation. The study results show that under the present conditions, the municipal entities in the Russian Federation are not able to ensure progressive socio-economic development based on allowances, subsidies and subventions from higher-level budgets. The activities of local government bodies should be based on their own incomes. In accordance with budget legislation, allowances and subsidies are attributed to own incomes, though this is not entirely correct since they are not assigned to local budgets on an ongoing basis, but are financial support.