The prospects of municipal economy sector reforming (part 1)

The article deals with characteristics of the municipal economy sector, the prospects of its reforming and it also describes the experience of CIS countries as well as the foreign experience. The directions of municipal economy revival have been substantiated. The first part of the article is addressed to the importance of the economic development of municipalities in a view of local self-government reforming. The qualitative characteristics of the economic indicators of regions have been compared. The authors emphasize the impossibility to their full participation in regional economic policy, due to lacking the necessary resources and discretions in municipalities. The well-founded conclusion is done on the need for integrated planning system of socio-economic development of regions and municipalities, the inclusion of this development into the list of discretions of municipalities and the criteria of quality management evaluation. The need for the new budgetary system, which leaves the most part of taxes on individual income, on real estate, on profit of enterprises, on local mining operations, on excise tax, etc. is also discussed. Further, in the evidence forms, the authors of this article give a detailed characteristic of the municipal economy, starting with energy production which is the important sector.