Regulation of municipal development in unstable conditions: Institutional and budgetary instruments

Abstract

Subject. The article is devoted to the specifics of municipal development regulation in the constituent entities of the Russian Federation in a volatile economic situation. Objectives. We focus on creating an approach to assess the effectiveness of institutional and budgetary tools for territorial development regulation in modern conditions. Methods. The study rests on analysis, synthesis, analogy, methods of comparison and grouping. Results. We developed evidence-based recommendations on creation and improvement of an approach to using the institutional and budgetary instruments by regional authorities to regulate territorial development. Its distinctive feature is an assessment of effectiveness in the short and long-term. We revealed differences in the impact of financial instruments on municipalities with different levels of socio-economic development and offered a differentiated approach to the distribution of non-targeted transfers for various groups of municipalities in unstable environments. This is aimed at maintaining the interest in self-financing their development in the long term. Conclusions. The suggested approach to the use of institutional and financial instruments of regulation at the regional level allows for a comprehensive assessment of their effectiveness. This enables, if necessary, to quickly adjust the regulatory framework and the practice of funds distribution between municipalities in unstable external environment.