financial basis of local government is the regional budget.The economic and financial rights granted to these bodies, allow to make, to consider, approve and, of course, fulfill your budget.
Regional budget - this is the main channel of communication to the citizens of the final result of production.It is from this source are redistributed social product between the layers of the population and administrative-territorial units.In addition to the above, with this kind of budget takes significant funding for such industries as food processing, engineering and other budget organizations.This kind of tool is the process of improving the welfare of citizens.
From an economic point of view, the regional budget shall perform such functions:
- generate cash assets involved in the financial support of local authorities;
- distribute these funds among the major sectors of the economy;
- to control financial and economic activities of subordinate organizations, institutions and enterprises.
formation of the regional budget by the relevant authorities and consists of performing certain steps related to the preparation of his approval and execution.The main components of the budget, like any other, are the revenues and expenses.
income base includes various revenue.The tax revenues the largest share of land tax.This type of tax is an economic instrument to achieve a high efficiency of land use.Also, the land tax is a source of cost-reimbursement of the local budget for the construction and development of new territories.
regional budget must be supported by a fixed source of income.It is these sources should contribute to an increase in payments as budgetary expenditure is a tendency to a permanent increase.Therefore, in the budget of any region should play an important role regulating the sources, represents funds received from the budgets of higher level.
Among regulating income includes:
- interest payments from tax revenues of budgets of higher level;
- subsidies and subventions from higher budgets.
role of regulators is to ensure that revenue financial resources of regional authorities, as well as the source of income is the increased interest of local authorities in the collection of funds in the budget of higher level.
often regional budget expenditures exceed revenues.In this case, the budget deficit could save only subsidies or subventions from the budget of the higher level.However, these sources do not have the skills and incentives favor the development of a sense of dependency among regions.
Regional budget can not exist without its expenditure part, the main focus of which is the financing of social and cultural institutions, such as health care and public education, as well as other budgetary institutions.The structure of the budgets of the various regions differ from each other.If the regional, city and regional budget expenditures on social and cultural activities account for almost half of all costs, in the township, village and district budgets - up to 86%.
With the growth of the major cities and towns increased spending per capita.And this is one of the important indicators of regional budget expenditures.Also, do not forget about the growth needs of the residents of small towns and villages in the part of municipal services.