The municipal authorities of Eastern European countries: Financial and economic aspects

Abstract

The purpose of the article is to study theoretical and practical aspects of local government organization and activities in Eastern Europe. The subject of the article is the issues of legislative support of the financial and economic bases of functioning of the municipal authorities of the Eastern Europe Statesю Methodology. In the course of study general scientific and special methods were used, which are the means of scientific research. In particular, comparative legal method was used for the analysis of the norms of substantive law of Eastern European countries, scientific categories, definitions and approaches. Historical and legal method gave an opportunity to reveal the meaning of the concepts of «local budget», «local self-government», to highlight the development of scientific views on specific issues. System analysis method was applied for an integrated generalization of the features of each country under consideration. The system-structural method made it possible to determine the state and government objective factors in the financial and economic spheres. The results of the study. It is recognized that due to the relatively low share of income, the entire financial system of municipalities is unstable, as well as the economic conditions in which local self-government operates. Although the analysis showed that the size of municipal budgets gradually increased, in the end they do not correspond to the level of inflation in these countries Practical implications. To ensure the autonomy of local government, it is especially important to manage the own revenue base of the territories and reduce their dependence on subsidies from higher-level budgets. In our opinion, subsidies should cover only certain types of expenditures of either national or regional importance and ensure equalization of the financial situation of the territories. Value / originality. The analysis of the relevant legislation and legal literature of the countries in question allows us to conclude that the expenditure part of the minimum budget determined by the legislator is calculated according to the norms and standards established by representative higher authorities on the basis of the law and the available funds, while the revenues of the minimum budget should cover the minimum necessary expenses guaranteed by higher authorities. Key words: Local government, decentralization, material and financial resources, tax system, municipal loans, own incomes.