Local budgets: problems of formation at the present stage

In modern conditions, the management of socio-economic processes is increasingly shifting to the territorial level, which presupposes the availability of the necessary financial and material resources for this. Any region is a combination of urban districts, municipal areas and settlements. Therefore, municipalities play an important role in regional development. It is in municipalities that the economic, including tax, potential is concentrated, and at the municipal level, which is part of a larger formation, the basis for regional development is created. In this regard, the role and importance of local budgets is increasing, which makes it relevant to improve the mechanism for their formation. A significant part of budget revenues is tax revenues. The objective of the study is to examine the role and importance of local taxes assigned to local budgets, as well as federal and regional taxes transferred to these budgets. The objectives of the study are to identify the effectiveness of the current mechanism for calculating taxes, forming the revenue side of local budgets, and to propose measures to improve them. The study used the following methods: analysis and synthesis, generalization, grouping, dialectical, tabular, etc. The information base for the study was the tax and budget legislation, official statistical data of Rosstat, and reports of the Federal Tax Service of Russia on taxes. In order to ensure the validity of the conclusions, the study was conducted not only on the basis of data for the Russian Federation as a whole, but also in the context of federal districts. The study has established an increasing dependence of local budgets on federal taxes. The role of local taxes is insignificant, as is the role of small and medium-sized businesses in the tax revenues of local budgets. The share of local budget revenues in the amount of revenues of budgets of constituent entities of the Russian Federation is also decreasing. The results of the study can be used in practical activities in matters of tax administration, as well as in further research in the areas proposed in the conclusion of the study.