The local budget is a centrally formed financial fund of the municipality, as well as the process of its formation, formation, approval and execution. Control over its implementation is carried out by local authorities independently. The estimate may include expenses of certain territories and settlements that are not municipalities.
The local budget is formed from sources fixed by law for each level. The budget funds receive local taxes, deductions transferred by state authorities for the exercise of certain powers, income from privatized property, leasing of municipal property, subventions, subsidies, transfer payments, etc.
Relations between budgets are carried out by transferring funds from the funds of some to the funds of others: higher ones allocate targeted funds to lower ones, etc. The purpose of such regulation is the distribution of sources between budgets of different levels.
The local budget may include trust and reserve funds, the funds of which can be transferred for the implementation of various social, environmental, economic programs, etc. Relations between budgets are regulated either by fixing them in normative acts, or by signing agreements on the separation of powers of the state and regions.
The revenue and expenditures provided by the local budget separately reflect the financing of local events and the exercise of federal powers as subjects of the Russian Federation.
Local taxes and benefits on them are set by local authorities independently. Replenishment of local funds is possible during referenda taking into account the opinion of the local population in the form of one-time voluntary contributions by residents of the district. Payment for the use of natural resources extracted in the municipal territory also goes to local budgets. Extra-budgetary funds may be formed on the terms and in the manner prescribed by the laws of the Russian Federation.
If these sources are not enough, the state federal bodies and authorities of the constituent entities of the Russian Federation can transfer to other local governments other revenue sources of higher-level budgets. When assessing the minimum level of the local budget, the carry-over balances of previous years are not taken into account.
The costs of local budgets are determined directly by local authorities. They must ensure that the basic needs of the population are satisfied at the level of social standards. The funds that should be used to fulfill state powers are provided annually in all budgets of constituent entities of the Russian Federation. Changes in these costs are controlled by the federal authorities. If the decision of the top-level authorities leads to an increase in local budget expenditures, then these funds are compensated by the bodies that made this decision.
The state guarantees that the local budget is determined independently by local governments, which also have the right to freely determine the directions for using these funds. The same applies to the disposal of fund balances formed at the end of the year. Budget regulation is carried out in accordance with the minimum social standards, norms and standards of budgetary provision.
The local budget in the expenditure side is divided into the budgets of the current period and development. The first group includes financing of capital construction, investments in large projects, expenses for the maintenance of housing and communal services, environmental protection, ensuring the educational process, healthcare, science, culture, sports, etc. The second is the allocation of funds to finance the costs that are necessary for expanded reproduction: investments in the authorized capital of enterprises, loans to support small businesses, socio-economic development of the territory, environmental programs , etc.