Introduction: the article attempts to analyze the measures used to encourage municipalities as a necessary condition for the effective functioning of local self-government. The non-material (motivating factor) and material measures of encouragement of municipalities aimed at their sustainable development are investigated. Materials and Methods: the author considers a set of norms of Constitutional, Administrative and Budgetary Law that form public incentive legal relations, presents scientific and theoretical positions of scientists and judicial practice on these issues; general scientific methods were used, as well as special ones: structural-functional, formal-legal were used. Results: the analysis of scientific literature and legislation regulating public-award relations allowed us to identify two groups of incentive measures: material and non-material. Non–material incentive measures are measures based on the recognition of the merits of a local community acting on the basis of a collective consciousness formed by the common interests and values of the population of a particular territory. The main forms of non-material incentives are awards and honorary titles, both at the federal and regional levels. Material incentives for municipalities are funds received by the local budget through inter–budgetary transfers from the federal budget or the budget of a constituent entity of the Russian Federation. Discussion and Conclusions: the lack of legislation in a significant part of the subjects of the Russian Federation that would provide for awarding municipalities was negatively assessed, since the local community should receive a positive assessment of its merits. The State's award policy and relevant regulatory legal acts should provide for the awarding of municipalities with state awards and honorary titles. It is proposed to introduce the concept of a budget grant provided to a municipality. Keywords: Constitution of the Russian Federation; public authority; local self-government; encouragement; incentive measures; motivation
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