Municipal Budget Research Articles

FINANCIAL PERFORMANCE ANALYSIS OF THE MUNICIPALITY OF PRIZREN IN KOSOVO FOR THE PERIOD 2005-2019

The purpose of this research is to analyze and reflect the financial performance of revenues and expenditures of the Municipality of Prizren in Kosovo from 2005 to 2019. Using different types of methods (statistical, confirmatory, qualitative, analytical, quantitative and comparative), the analysis of revenues and expenditures of the Municipality of Prizren is done for each year separately, where it is presented in detail in tabular forms. Each revenue and each expense is calculated separately and the index of the ratios between allocation and planning, realization and planning as well as realization in relation to the allocation is derived. This research shows the growth of own source revenues from 2005 to 2019, while through the relationship between the realization and planning of own source revenues it analyzes whether there was a discrepancy between the realization and planning in these revenues. The result of the realization of the government grant planning for 15 years will also be shown. All these findings are based on data obtained from the official financial reports of the Municipality of Prizren and financial statements. It has also been done analysis of the correlation between the realization of municipal budget expenditures and the realization of capital investmens. This research tests the four hypotheses presented, which are all accepted after the analysis.

THE IMPORTANCE OF ACTIVATING ENTREPRENEURSHIP AND INNOVATION OF ECONOMIC AGENTS FUNCTIONING IN THE ECONOMY AND CONTEMPORARY TRENDS IN TEACHING ENTREPRENEURSHIP IN HIGHER EDUCATION

This article describes the key determinants of the importance and need for the activation of entre-preneurship and innovation for the effective development of economic entities in Poland and the improvement of market efficiency. The process of activating economic activity and creating innova-tion is possible primarily through the use of specific systemic solutions that improve the operation of economic entities, as well as various institutions functioning in their environment. In the context of effective development of economic entities, the issue of activation of innovativeness and entrepre-neurship is a particularly important determinant, as in this way it is possible to significantly in-crease the economic effectiveness of a given entity, improve its financial situation and, as a conse-quence, also increase tax revenues to the state and municipal budgets. On the other hand, it is also important to improve business-social relations between enterprises and state and local government bodies. Efficient implementation of programmes activating entrepreneurship and innovativeness is determined by the process of developing correlations and feedback in the area of cooperation be-tween enterprises, local government units and other institutions of closer and further business environment, including state authorities. Economic growth in Poland is to a large extent determined by innovativeness and entrepreneurship of local and national economic entities. Apart from that, in this article a diagnosis of contemporary trends in teaching entrepreneurship in higher education has been conducted on the example of characteristics of applied didactic methods at the Academy of Entrepreneurship in Warsaw. The aim of the didactic methods used at the university described in this article is, among others, shaping entrepreneurial and pro-innovative attitudes of students.

THE IMPACT OF FISCAL POLICY ON ENSURING THE DEVELOPMENT OF THE SOCIAL SPHERE IN UKRAINE

Introduction. Social support of the population is the activation of social and economic activity, the guarantee of economic well-being and development in the state. The necessity of studying modern trends in the functioning and possibilities of improvement of the state financial policy lies in the urgent need to ensure the stable development of a socially oriented market economy in Ukraine. In order to build an effective system of social protection, provision and support, it is necessary to have a sufficient amount of financial resources, which will ensure the effective functioning of the social sphere. The purpose of the article. To determine the relevant aspects of the impact of fiscal policy instruments on ensuring the development of the social sphere, taking into account the trends of digitalization and the use of mathematical methods of analysis. Methodology. The research used general scientific and special methods: theories of cognition, synthesis, grouping, description, comparison, mathematical analysis, graphic representation, theoretical generalization and systematization. Results. The nature and role of tax policy in ensuring the social development of the state are substantiated. The peculiarities of the digitalization of the tax administration as a factor of improvement of the activity of the tax authorities in the context of the performance of fiscal and social functions are emphasized. During the reporting period, considerable attention was paid to the peculiarities of financing the social sphere. It was noted that tax revenues play a key role in the financial resources of local budgets, which makes it possible to cover a wider range of expenditures in the social sphere. Using the methods of mathematical analysis and software products, a graph of the correlation between the revenues of local budgets and expenditures and the social sphere was created. It was found that tax revenues have the greatest impact on the volume of spending on housing and communal services, mental and physical development, and education. In the case of health care expenditures, the same influence of both tax revenues and official transfers was found. Measures to optimize the fiscal policy of Ukraine in the context of stabilizing the social environment in the conditions of martial law are proposed. Conclusion. Fiscal policy should provide a system of state measures to solve certain short-term and long-term tasks facing society, in particular with the help of the tax system. Long-term tasks include achieving economic growth, the maximum level of employment of the country's population and increasing the level of its well-being. Short-term goals can be filling the state and municipal budgets, achieving their balance, stimulating investment and innovation programs that will contribute to the effective development of society.

Machine-learning approaches in geo-environmental engineering: Exploring smart solid waste management

Over the past few decades, increased attention has been paid to domestic waste (DW) generation. DW comprises a large percentage of municipal solid waste (MSW), and its handling and processing involves serious technical issues while also consuming a major portion of municipal budgets. The accurate estimation, prediction, and characterization of DW is an ongoing challenge for many cities, municipalities, and local governments as they strive to implement sustainable strategies for MSW. The main objective of the present study is to estimate and correctly predict DW quantities using machine-learning (ML) algorithms. Several different ML algorithms are used in the research, including linear regression, regression trees, Gaussian process regression, support vector machine, and autoregressive integrated moving average methods for time series analysis. Two case studies are presented in this paper. In the first, domestic waste data covering the period from 2010 to 2021 were collected from the Saudi and Bahrain authorities, and in the second, the domestic waste-generating behavior of a family of eleven members was followed for one month. The results show that the biodegradable and non-biodegradable wastes generated by the family were in the range of 1.7–7.9 kg and 0.0–2.0 kg, respectively, and promising outcomes were obtained using an appropriate selection of input predictors in conjunction with time series analysis. The trained models are validated and tested using several types of evaluation metrics, including calculated residuals, mean square error, root mean square error, and coefficient determination (R2-Score). The latter values are in the range of 0.67–0.85 for the training and testing datasets for many of the predicted waste quantities. The results obtained from the study show that these algorithms can be used to reduce the environmental, economic, and societal impacts of waste by designing a smart waste management engineering system.

BUDGETING IN THE LOCAL SELF-GOVERNMENT UNITS AND ANALYSIS OF THE IMPLEMENTATION OF THE BUDGET IN THE LARGEST MUNICIPALITIES IN THE REPUBLIC OF NORTH MACEDONIA

More precise budget planning will lead to more accurate determination of the way of spending of the Municipality funds. The budget should be based on a balance operation, always following the realized revenues and thereby balance the expenditures of funds. When preparing the budget, certain principles should be respected. In this paper, research will be done according to the sources of financing and to the economic classification of revenues and expenditures in the local self-government units. The research will prove the lower transparency of the Municipalities in the Republic of N. Macedonia. The average of transparency is 73.60%. About the revenues and expenditures there will be more results separately about the planned and realized budget, as well as the separate items within the budget, their correlation and interdependence. The average of revenues realization is 78.56%, and the average of expenditures realization is 77.26%. This will prove at what level the local self-government units are and how and where they should act when creating the municipal budgets, in order to have a better execution of the budget, more successful operation and of course to strive for greater transparency.

Assessment of the openness of state (federal, sub-federal) and municipal budgets: international, Russian practice and the results of the national ranking for 2020 and 2021

The materials of the article reveal the importance of implementing the principle of openness of state (federal, sub-federal) and municipal budgets in ensuring effective budgetary policy of the state. Methodological approaches to assessing the openness of budgets in international and Russian practice are considered. the ratings of the subjects of the Russian Federation (subjects of the Siberian Federal District) on the level of openness of budget data for 2021 in comparison with 2020 are given. the model of budget openness formed in the Russian Federation and the main directions of its further development are presented.

Application of a sustainable location index approach to landfill site selection in Monterrey, Mexico.

Landfilling is the main method to manage municipal solid waste (MSW) in Latin America due to the economic, technological and political characteristics of the region. The disposal of MSW in landfill sites may affect the quality of the environment and compromise a considerable share of the municipal budgets. The selection of suitable sites reduces the environmental and economic impact of landfills. In the present study the sustainable location index (SLI) is proposed as a methodology to assess environmentally, and economically, sanitary landfill site selection in the Metropolitan Area of Monterrey, a representative large-size city of Latin America. EVIAVE methodology was modified to include administrative and economic dimensions, which are assessed as a sustainable approach using together the SLI integrated with geospatial and multicriteria analysis tools. The assessment showed that the zones with the lowest SLI changes drastically when the importance of the economic or environmental factor varies. This result suggest that the inclusion of sustainability in landfill site selection decision-making is complex and it may requires the inclusion of local particularities such as municipal budgets, policies of MSW management and public perception about environmental deterioration.

IMPACT OF AIRPORTS ON THE ENVIRONMENT: OPINIONS OF LOCAL COMMUNITY REPRESENTATIVES

Research presented in this article was undertaken to determine how representatives of authorities and residents of communes perceive airports in the context of the impact of these airports on the socio-economic situation in the communes. The goal was achieved using: analysis of documentation of communes, analysis of data on the functioning of airports, and a diagnostic survey using the interview technique and survey technique. The research was carried out on representatives of 5 communes located in Poland. To analyse the collected material and present the results, Statistica v.13.3, R v.4.0.0 and RStudio editor software were used. Results of this research proved that airports play a pivotal role in stimulating the development of the region. They influence the quality of life in the commune by contributing to the creation of jobs, attracting investors, and generating income for the municipal budget through taxes paid.

Participatory Budgeting as the Instrument of Technologically Supported Dialogue in Cracow, Poland

Abstract Ordinary citizens today support the local decision-making authorities in the domain of public spending using the instrument of participatory budgeting. The situation is of particular interest in Cracow, the second largest city in Poland in terms of the number of residents, as it stands out for its intensive and advanced use of technology. Here, participatory budgeting is a formalized, multi-stage procedure, composed of an information and education campaign, preparation and submission of projects, verification of submitted projects, submission and examination of protests, voting, implementing of projects, and informing about the concluded projects. Using participatory budgeting, the residents communicate their needs and obtain funds to satisfy them. Participatory budgeting covers on average 0.5% of the municipal budget and is decided by 5–7% of Cracow’s residents. The research covers the years 2019–2021 and takes into consideration the changes resulting from the SARS-CoV-2 epidemic. The article aims to examine the coexistence of forms of communication, supporting dialogue between residents and local officials in the participatory budgeting process. According to the adopted hypothesis, the two forms of communication used within participatory budgeting—the traditional ones and information and communication technologies (ICTs)—are not separated but are integrated into governance process and reinforce each other. The literature, legal provisions, the website on participatory budgeting, media information, social media, and evaluation reports based on qualitative and quantitative methods were analyzed. The results show that the introduction of participatory budgeting resulted in a new type of dialogue and relationship between residents and local officials, based on the traditional tools of communication and ICTs. ICTs cannot replace the traditional forms of communication but their potential should be used to a greater extent. As both forms of communication, direct and indirect (technologically supported), coexist and have their own advantages and limitations, especially under normal, non-epidemic conditions, the two should facilitate and reinforce each other.

Ameliorating Child poverty through Connecting Economic Services with child health Services (ACCESS): study protocol for a randomised controlled trial of the healthier wealthier families model in Sweden

BackgroundSweden is often held up as an example of a country with low child deprivation; yet, rates of relative deprivation are rising. Every municipality in Sweden is required to provide free, timely and accessible budget and debt counselling under the Social Services Act. The services have been encouraged to perform preventative practice with families; however, this has not been realised. The Healthier Wealthier Families (HWF) model embeds universal screening for economic hardship into child health services and creates a referral pathway to economic support services. Given the universal child health system in Sweden, which is freely available and has excellent coverage of the child population, implementation of the HWF model has potential to support families to access the freely available municipal budget and debt counselling and ultimately improve rates of child deprivation in Sweden.Methods/designWe will conduct a two-arm randomised waitlist-control superiority trial to examine the effectiveness and cost-effectiveness of the HWF model in the Sweden. A longitudinal follow-up with the cohort will explore whether any effects are maintained in the longer-term.DiscussionHWF is a collaborative and sustainable model that could maximise the effectiveness of current services to address child deprivation in Sweden. The study outlined in this protocol is the first effectiveness evaluation of the HWF model in Sweden and is a crucial step before HWF can be recommended for national implementation within the child health services.Trial registrationClinicaltrials.gov; NCT05511961. Prospectively registered on 23 August 2022. https://clinicaltrials.gov/ct2/show/NCT05511961

Investigation of Factors Affecting Per Capita Expenditure of Water and Sewerage Administrations in Turkey

The per capita expenditure of water and sewerage administrations (WSA) is an important indicator of the performance and characteristics of WSAs. In this context, the effects of different parameters on the per capita expenditure of WSAs were examined. Investigated parameters were selected as service time, region, population, and metropolitan municipality (MM) budget. There are 30 different WSAs investigated within the scope of the study. According to the results obtained, WSAs with higher service time and MM budgets have higher per capita expenditures. Moreover, according to the evaluation based on the region, it has been determined that Southeast Anatolia is the region with the lowest average WSA per capita expenditure, while Marmara region had the highest. A positive correlation has been detected between the population and per capita expenditures as well. Relative assessment of WSAs budgets to the MMs budgets has been performed to understand the region-specific budget allocation of MMs to the WSAs. It was found that except Black Sea and Central Anatolia, all other regions allocate similar ratios, around 40%, of the MM budget to the WSAs. Black Sea MMs allocate the highest percent and Central Anatolia MMs allocate the lowest percent budget to the WSAs. According to the results obtained in the study, it has been proposed for WSAs to prepare master plans that cover 30-40 years in order to optimize per capita expenditures and establish a balance between capital and operation and maintenance cost of the investments.

Sustainability of the regional financial system: a case study of the Northwestern Federal District.

Background: This article provides an assessment of the sustainability of Russian regions' financial systems. The study is based on the methods of generalization and synthesis, correlation-regression analysis, and multivariate classification. Since the structure of the regional financial system is complex, several works are devoted to studying its sustainability issues. The relevance of the study topic is confirmed by the lack of a systematic approach to assessing the integral index of sustainability and the possibility of using various tools in determining the complex indicator. Methods: This methodology with application of mathematical statistics methods makes it possible to assess the financial system sustainability in four sectors, to include the leading indicators in the assessment, and to identify regions with extreme values of debt burden indicators. The method was tested for the regions of the Northwestern Federal District (NWFD) for the period 2010 - 2019 to classify the regions according to three levels of debt sustainability. Data collection from the 1 st January to 30 th April 2022 included statistical data from government open internet sources, sectors studied relate to government, and municipal budgets in the NWFD. Authors analyzed regional debt sustainability indicators and identified themes in the field of sustainability studies for the NWFD. Results: An increased level of financial system sustainability was observed among the NWFD regions in the corporative and personal finance sectors, indicating a significant contribution of businesses and households to maintaining the balance and sustainability of the financial system in Russia as a whole. The results of the study also identified that the NWFD regions belong to three clusters: cluster 1 - high debt sustainability; cluster 2 - medium debt sustainability; and cluster 3 - low debt sustainability. Conclusions: The study results allowed the identification of regions with a constantly high level of debt, financial, and corporative sustainability.

Enhancement of Composting Methods in Solid Waste Management

The most pressing problem faced by any city center in India nowadays is Municipal Solid Waste Management (MSWM). Rapid urbanization and converting life have caused the era of massive amounts of garbage and waste within the city regions, so much so, over the last few years, just the managing this Municipal Solid Waste (MSW) has assumed the share of a primary organizational, economic and environmental task. Despite MSWM being a chief task of the local governments, normally accounting for a massive part of the municipal budget - about 20% to 50%, the Urban Local Bodies (ULBS) are not able to offer effective services. Most of the ULBs do now not even have dependable MSW generation estimates. Unfortunate fallout of rapid urbanization without good enough infrastructure backup is that during all Indian cities/cities, disposal of waste is carried out indiscriminately, main to stray animal menace, clogged drains and unfold of diseases. The procedure of collection, transportation, and disposal of MSW is not complete in a maximum of the towns/cities with rubbish thousands final unattended till the severity reaches unmanageable proportions. Also, the high organic content material of Indian MSW, compounded through the recent, and humid tropical weather results in the rapid decomposition of the uncollected waste and is an ever-present health risk. Municipal waste that is improperly disposed of has a severe and dangerous effect on a wide range of areas. Along with waste discarded close to rivers, lakes, and streams, trash dumped in the street or in open areas poses a threat to public health. Delivers contaminated water. When the trash is burned outside instead of being properly disposed of, pollutants are produced and hazardous gases are released into the atmosphere. Throwing no biodegradable items down open drains causes them to enter the sewer system, blocking pipes and harming the infrastructure. The risks associated with the disposal of untreated medical and commercial waste are increased by the release of pathogens and poisonous substances, which represent a serious threat not only to human life but also to that of plants and animals. The effects of trash thrown in the area go beyond just being an eyesore; entire landscapes are destroyed, and certain habitats for flora and fauna are lost. All of these issues are commonplace in India, where tremendous portions of strong waste remain uncollected within the streets, along side primary roads, in empty plots of land, on downhill slopes, and in illegal dumps.

Организация местных сообществ как способ повышения гражданской активности и развития территорий муниципальных образований (на примере Челябинской области)

Introduction. Local communities as a social institu- tion are not only a form of population’s self-organ- izing, but also an important element of the local government system. The role of local communities’ activism is currently particularly relevant due to providing a legislative framework for the possibility of residents’ participation in distributing part of the municipality budget — initiative budgeting (Article 26.1 of Federal Law No. 131-FZ). A new impetus to the development of civic participation in solving local problems was also given at a meeting of the Council for the Development of Local Self- Government under the President of the Russian Federation in 2020—2021. It became obvious that in modern Russia it is necessary to strengthen educational activities among citizens in order to increase their legal literacy, disseminate relevant knowledge in the field of social design, and explain the available forms. The purpose of the article is to study the prob- lem of organizing local communities in order to increase citizens’ social activity and municipal ter- ritories development. Methods. The authors summarize the current theo- retical and practical experience of the local com- munities’ development in the Chelyabinsk region. The basis of the study is a structural and functional approach, as well as such a qualitative method as included observation, used when the authors of the article performed the functions of moderators and trainers-consultants of initiative groups of citizens in the Chelyabinsk region. Scientific novelty of the study. The article shows the role of local communities as a self-organizing entity and an equal partner in the system of local self-government, actively involved in solving issues of local importance, and also presents the results of the project “Local communities — a driver of ter- ritorial development”. The purpose of the project is to promote the activ- ity of civil society, the development of municipal democracy, and the dissemination of relevant knowledge about public self-government. Results. The authors prove that the development of citizens’ knowledge, skills and abilities in the areas of solving local issues, the basics of social design, initiative budgeting, attracting additional funding by participating in competitions for grants and subsidies, voluntary donations is not only an effective way to involve citizens in territorial and local self-government, but also a “driver” of territo- rial development. The materials prepared during implementing the project “Local communities — the driver of territorial development” can be used as a sample and a guide for novice managers of local communities. Conclusions. The implementation of the project “Lo- cal Communities — the driver of territorial develop- ment” contributes to stimulating public activity, creating conditions for improving the effectiveness of interaction between citizens and public authori- ties, creating associations of residents, establishing partnerships for the implementation of joint pro- jects, strengthens the potential social base of CBT.

Sustainability of the regional financial system: a case study of the Northwestern Federal District.

Background: This article provides an assessment of the sustainability of Russian regions' financial systems. The study is based on the methods of generalization and synthesis, correlation-regression analysis, and multivariate classification. Since the structure of the regional financial system is complex, several works are devoted to studying its sustainability issues. The relevance of the study topic is confirmed by the lack of a systematic approach to assessing the integral index of sustainability and the possibility of using various tools in determining the complex indicator. Methods: This methodology with application of mathematical statistics methods makes it possible to assess the financial system sustainability in four sectors, to include the leading indicators in the assessment, and to identify regions with extreme values of debt burden indicators. The method was tested for the regions of the Northwestern Federal District (NWFD) for the period 2010 - 2019 to classify the regions according to three levels of debt sustainability. Data collection from the 1 st January to 30 th April 2022 included statistical data from government open internet sources, sectors studied relate to government, and municipal budgets in the NWFD. Authors analyzed regional debt sustainability indicators and identified themes in the field of sustainability studies for the NWFD. Results: An increased level of financial system sustainability was observed among the NWFD regions in the corporative and personal finance sectors, indicating a significant contribution of businesses and households to maintaining the balance and sustainability of the financial system in Russia as a whole. The results of the study also identified that the NWFD regions belong to three clusters: cluster 1 - high debt sustainability; cluster 2 - medium debt sustainability; and cluster 3 - low debt sustainability. Conclusions: The study results allowed the identification of regions with a constantly high level of debt, financial, and corporative sustainability.

PROBLEMS OF FORMATION OF TAX REVENUES OF THE BUDGET OF TERRITORIAL UNITS AND WAYS OF IT OVERCOMING

PROBLEMS OF FORMATION OF TAX REVENUES OF THE BUDGET OF TERRITORIAL UNITS AND WAYS OF IT OVERCOMING

Perceptions of the Exemption Policy on Maternal Mothers Healthcare Service Delivery in Iringa Municipality, Tanzania

This article presents perceptions on the effect of the user-fees exemption policy on maternal mothers in Iringa Municipality, in Iringa, Tanzania. It specifically presents outcomes of the policy on healthcare services offered to maternal mothers. The study employed a cross-sectional research design, with a purposively selected sample of 74 respondents. Data was collected through questionnaires, in-depth interviews, and documentary review; and analysed descriptively and thematically. The results indicated that, on the one hand, the policy increased equal chances in accessing health services among maternal mothers; increased the number of deliveries in health facilities; reduced the number of maternal deaths and uncertainty of delivery for maternal mothers; and improved chances of survival and the overall health of maternal mothers and their babies. On the other hand, the policy tempted unlawful payments; increased household’s dependency on the government; increased municipal expenditure; led to the shortage of beds, drugs as well as skilled health workers; and invited indirect costs. Despite all these challenges, the exemption policy was important as access to health services for maternal mothers improved greatly. Based on the study results, it is recommended that unlawful payments should be controlled; municipal expenditure budget, hospital beds, drugs, and skilled health workers be increased; and indirect costs be minimized.

The Effectivity of Local Fee Collection: Case Study in Selected Municipalities of the South Bohemian District, Czech Republic

Local fees and tax income are one of the income sources of a municipality budget. Their size and collection is regulated by the municipality and a particular state. 12 municipalities of the South Bohemian District were chosen according to their size to find out the efficiency of the collection of the higher mentioned income. Next, a relationship between individual shares and size of selected municipalities in number of inhabitants was calculated based on shares among city fees, tax income and total income. The size of yields in local fees differs and the size of municipality (based on the number of inhabitants) is not the main factor of the difference. Yields of municipalities are also influenced by geographical and economic factors (e.g.: growth of tourism, Český Krumlov). Furthermore, absence of any relationship among local fees, tax income and total income was found within selected municipalities.

Assessing the Microclimate Effects and Irrigation Water Requirements of Mesic, Oasis, and Xeric Landscapes

Urban irrigation is an essential process in land–atmosphere interactions. It is one of the uncertain parameters of urban hydrology due to various microclimates. This study investigated the microclimate effects and irrigation water requirements of three landscape types in an arid region of Phoenix, AZ. The microclimate effect encompassed surface temperature, air temperature, and wind speed. The simulations of the three landscapes were conducted using ENVI-met software for the hottest day of the year (23 June 2011). The simulated model was validated using ground data. Results show that the mesic landscape induced cooling effects, both in the daytime and nighttime, by reducing surface and air temperatures. However, the mesic landscape showed high-water consumption because of a high leaf area density. The oasis landscape showed 2 °C more daytime cooling than the mesic landscape, but the nighttime warming (surface temperature) was comparable to the xeric landscape. The potential irrigation water requirement was 1 mm/day lower than the mesic landscape. Moreover, microclimate conditions varied spatially in each neighborhood. The xeric landscape showed lower wind speeds and air temperatures between the buildings. The wind speed variations in the three landscapes were inconclusive due to differences in building orientations and discrepancies in trees’ heights. The findings can have implications for restricting the municipal irrigation budget. In addition, they can help water managers in choosing a landscape in urban areas. Urban scientists can adapt the methodology to quantify urban ET in arid regions.

Municipal Budget Expenditures and Per Capita Incomes in the Russian Arctic

ABSTRACT This study assesses the financial capacity of Russia’s Arctic municipalities and evaluates the wages of Arctic employees working in the education and health care sectors. Research was conducted in three areas: the budget capacity of the social spheres; the standard of living and incomes of employees working in socially significant areas; and the social orientation of municipal budgets in the Russian Arctic. The author’s method of assessing the participation of the state in the life of the population made it possible to formulate a number of proposals for improving the social spheres of the urban districts of the Russian Arctic. The study shows that education and health care have declined in the urban districts of the Russian Arctic, due to lower budgetary spending and a slowdown in the growth of wages. It is concluded that socially significant industries must be further developed using both budgetary and extrabudgetary resources, which could be procured through public–private partnerships.