Instruments for financing and managing local budget deficits

This article analyzes the instruments for financing and managing deficits of local budgets in the Russian Federation. The study aims to identify the most effective mechanisms for influencing the deficit, considering the potential for adapting foreign experience. The methodological framework is based on comparative analysis, systematization, and synthesis of statistical data for the period 2017–2025. The authors systematizes direct and indirect forms of deficit management. An analysis of best municipal practices demonstrates that the greatest efficiency is achieved by combining budget loans with measures to expand the revenue base and optimize expenditures. Alternative mechanisms are examined: public-private partnerships, which attract investment without increasing debt burden, and digital financial assets as a promising borrowing instrument. An examination of foreign experience highlights the importance of fiscal autonomy and quantitative borrowing limits. The conclusion substantiates the need for a balanced management model combining debt instruments, revenue base development, and partnership mechanisms to ensure the financial sustainability of municipalities.