Budget system of the Russian Federation. Local budget (most important)

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Budget system of the Russian Federation. Local budget (most important)

Lecture notes, cheat sheets

Directory / Lecture notes, cheat sheets

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8. Local budget

Local budget - This is the third level of the budget system of the Russian Federation.

The local budget is a form of formation and expenditure of funds intended to ensure the tasks and functions assigned to the subjects of local government.

Local self-government is exercised by the people themselves through freely elected representative bodies. To perform the functions assigned to local representative and executive bodies, they are endowed with certain property and financial and budgetary rights.

Local budgets are one of the main channels for bringing the final results of production to the population. Through them, public consumption funds are distributed among individual groups of the population, from which the development of industries is financed.

Local budgets perform the following functions:

1) form monetary funds, which are financial support for the activities of local authorities;

2) distribute and use these funds between sectors of the economy;

3) control the financial and economic activities of enterprises, institutions that are subordinate to these authorities.

Local budgets in the implementation of national economic and social tasks are of great importance, since they distribute state funds for the maintenance and development of the social infrastructure of society.

The composition of own revenues of local budgets includes:

1) local taxes and fees:

a) land tax;

b) tax on property of individuals;

c) advertising tax;

d) inheritance or gift tax;

e) local license fees;

2) income from privatization, including:

a) income from the privatization of objects of state and municipal property;

b) income from the sale of land;

c) income from the sale of apartments to citizens;

3) funds of compulsory medical insurance, funds of extra-budgetary and sectoral funds.

The main regulatory revenues of local budgets include deductions:

1) from value added tax;

2) from excises;

3) from corporate income tax;

4) from personal income tax. The main direction of using the funds of local budgets is to cover the costs associated with the life support of a person.

Author: Natalia Burkhanova

<< Back: Regional budgets

>> Forward: Consolidated budget

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