State and municipal finances. Local transfers (most important)

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State and municipal finances. Local transfers (most important)

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32. Local transfers

There is a consideration of such forms of interbudgetary transfers provided from local budgets as:

1) financial assistance from the budgets of municipal districts to the budgets of settlements;

2) subventions transferred to regional funds for financial support of settlements and regional funds for financial support of municipal districts (urban districts);

3) subventions transferred from the budgets of settlements to the budgets of municipal districts for resolving issues of local importance of an inter-municipal nature;

4) funds transferred to the federal budget or to the budget of a constituent entity of the Russian Federation in connection with the repayment of municipal debt to federal state authorities or state authorities;

5) other gratuitous and irrevocable transfers.

The procedure for providing financial assistance from the budgets of municipal districts to the budgets of settlements

Financial assistance from the budget of a municipal district to the budgets of settlements that are part of a given municipal district may be provided in the form of grants from the district fund for financial support of settlements and other grants and subsidies.

In order to further equalize the financial capabilities of local self-government bodies of settlements in relation to subsidies from the regional fund for financial support of settlements in exercising their powers on issues of local importance, regional funds for financial support of settlements may be formed as part of the budgets of municipal districts.

Subsidies from the regional fund for financial support of settlements are provided to settlements, the estimated budgetary security of which does not exceed the level established as a criterion for equalizing the estimated budgetary security of settlements.

The estimated budgetary security of settlements is determined by the ratio of tax revenues per inhabitant that can be received by the budget of the settlement based on the tax base (tax potential), and a similar indicator on average for the settlements of a given municipal district, taking into account differences in the structure of the population, socio-economic, climatic, geographic and other objective factors and conditions affecting the cost of providing municipal services per capita.

The procedure for providing subventions from local budgets to the budget of a constituent entity of the Russian Federation

It may be envisaged to transfer subventions to the budget of a constituent entity of the Russian Federation from the budgets of settlements or municipal districts (urban districts) in which, in the reporting year, the estimated tax revenues of local budgets exceeded the level established by the law of the constituent entity of the Russian Federation.

Subventions from the budgets of settlements, transferred to the budget of the subject, are credited to the regional fund for financial support of settlements.

Author: Novikova M.V.

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