PERFECTION OF MUNICIPAL FINANCES MANAGEMENT SYSTEM

Local government based on the consideration of the population vital interests and active citizens' participation in the management process should become the basis of Russian statehood. The basic document of the recent reform is Federal Law. 131, accepted in October 2003 "On the principles of organization of local government in the Russian Federation". According to the Constitution of the Russian Federation it has established the general legal, territorial and economic principles of the local government organisation, defined the state guarantees of its realisation. But the main problem of local government's activity support - its financial base - is still unsolved. In the article the authors offer to change the present system of taxes splitting to the system, where each tax is rigidly attributed to the levels of the budgetary system, thus to aspire full autonomy of the authorities of different levels in establishing the size, structure and financing of certain kinds of expenses (according to the Constitution of the Russian Federation, Article 72). In our opinion, local budgets should be formed by the following taxes: the personal income tax, the tax to the maintenance of housing and objects of welfare sphere (the previously cancelled tax), the sales tax (the previously cancelled tax), the cumulative income tax, the real estate tax (combined land and property taxes). The suggested model of interbudgetary relations is reconstructed to self-support municipal formations. The attraction of finances of higher budgets is required only in case of tax potential insufficiency in subordinated territories for the objective reasons. It is impossible to provide the development of a territory and its economy without creating a stable and powerful tax base for the municipality. We offer to apply the Basic Score Card system in order to improve making administrative decisions both of strategic and operative character. The application of the mentioned recommendations will provide the equation of the financial resources generated with the help of taxes with the expanses, thus creating conditions for satisfaction of municipal formations needs, and, hence, to full realisation of their economic interests.