Economic independence of municipal budgets

This paper describes the main principles of the budget system of the Russian Federation, conducted the analysis of compliance with the volume of necessary expenses own revenues of municipalities, studied the relationship between a stable source of income in the territory of the municipality and the implementation of assigned authority to the municipal level. The existing system of the intel budget transfers puts municipalities into certain dependence on decisions of federal bodies of the power and authorities of subjects of the Russian Federation and deprives of financial independence. Authors come to the conclusion that building-up to the tax potential and growth of tax revenues will allow creating to municipalities reliable financial base for development of the territories and economic independence of local budgets.