State and municipal finance in a financial structure occupy a special position. This is due to their specific purpose, which is the provision of state power and territorial cash management. These funds are used to help ensure that these bodies fulfill their functions.
State and municipal finances are monetary relations that are formed as part of the distribution process, which is determined by the formation of state and municipal bodies corresponding to the means. These funds were allocated for meeting civilian needs, economic regulation, financing law enforcement and national security, management and other expenses.
State and municipal finances are involved in the regulation of social phenomena, the development of priority economic sectors. With their help, smoothing of differences in the level of social and economic development of certain territories of the country is ensured.
State and municipal finances are formed under the influence of a number of factors.
So, of great importance is the form of power in the country. Unitary states as a whole (in comparison with federal ones) are characterized by a higher degree of concentration of funds at the disposal of central state bodies. In these countries, the basis for the monetary resources of the administrative-territorial elements are payments from revenues of regulatory importance and means of assistance from central authorities.
Within the framework of a federal state, built in accordance with the principle of differentiation of powers and subjects of regulation of subject and central representations of power, the dominant value of their own income of the subjects. Along with this, there has been a decrease in the scale of inter-budget redistribution of funds.
State and municipal finances are also formed in accordance with the administrative-territorial structure of the country. This is expressed in the activities of some entities as part of others or in the formation of territorial entities of different levels.
In accordance with the Constitution, the territories (regions and other entities) and autonomous okrugs included in their composition are equal subjects of the country. In this regard, the organization of financial resources occurs as part of the delimitation of powers both with the federal center and between territorial units.
The formation of state and municipal finances is also influenced by the special status of a number of entities. In accordance with their status, territorial entities perform certain functions. Additional financing is also allocated to solve a number of problems, which allows individual entities to obtain financial independence.
In accordance with the principle of equality, enshrined in article 5 of the Constitution, there is no difference in the composition and scope of powers of state bodies of the territories, republics, autonomous okrugs, regions and other elements. According to federal law, for all entities there are unified standards for deductions from fees and taxes to the budgets and a unified method of calculating cash assistance.
It should be noted at the same time that for municipalities, the law provides for the possibility of applying a special functioning regime. The application of a special status relative to the territorial unit of a country has several reasons. Among them, there is a concentration of state security objects within the boundaries of the subject, for which a special regime applies, and specialization of city-forming organizations in innovative, scientific, technical, and scientific activities in the conditions of a scientific and production complex. The presence of a special status implies a greater amount of authority for local government agencies and additional sources of cash receipts (finances of state and municipal enterprises, for example).