The problem of municipal finance's reform during Russian revolution of 1917: discussions and practical steps

In pre-revolutionary Russia question of creating a strong financial base for institute of city selfIn pre-revolutionary Russia question of creating a strong financial base for institute of city self-government was connected with the choice of the way for further development of Russia and the major problems associated with accelerated modernization - towards decentralization, interests of local communities or the strengthening of power vertical. Under the conditions of 1917, the institute of self-government was to become the basis of the new system, which determines importance of studying of attempts to strengthen its finances. This article explores debates about desirable transformation of the system of municipal finance in Russia to 1917, discussions and practical steps to improve city finance in the revolutionary period from March to October, 1917. The author concludes that disagreements between economists mainly concerned issue of providing cities with a partial income tax, subsidies, transfer of «real» taxes, creating a system of fair distribution of funds collected for municipalities. The steps taken in practice were much more limited, belated and did not correspond to the scale of the problems. As a result, it was failed to create a solid financial base and strengthen transformed institute of city self-government.