Problems and prospects of development and rational use of the local budget of a rural territory

Abstract

The purpose of the article is to study the issues of development and rational use of local budgets of agro-industrial territories. The authors have analyzed specific indicators of the local budget typical for the Ryazan region for 2014- 2016 - the Kaninsky rural settlement of the Sapozhkovsky District. Due to the economic-statistical and SWOT-analysis, some problem aspects have been revealed. In particular, local authorities do not have an opportunity to independently draw up their own full budgets. As a rule, they are pumped up at the expense of financial sources not controlled by the rural administrations. This has a number of negative consequences: It does not contribute to revitalizing and rationalizing actions of the local authorities to replenish the tax potential of the territory; it reduces the administration's responsibility for the budget execution and meeting commitments to the public; it causes dependency of local rural administrations while developing the revenue part of the budget; it does not contribute to the development of economic initiatives. The authors conclude that to improve the development and rational use of local budgets of rural settlements, it makes sense: To consolidate the results-oriented principles of medium-term planning and budgeting; to accept the requirement for further decentralization of the budget system and to provide real budget independence; to provide effective control over budgets of all levels and their real transparency.