On organizational and legal issues of financial security in state powers realization by local governments

The current legislation on budget and on local government presumes that means of local budgets should first be directed on the local issues. In the conditions when practically all municipalities became subsidized, it is obvious that additional financial means are necessary for realization of the state powers transferred to local governments. Otherwise, spending municipal money on solving the questions that are not local can result in ignoring the problems of local population, and, as a result, a negative social situation in municipality, growth of municipal debt. Today one of the fundamental principles of giving certain state powers to local governments in the legislation of the Russian Federation is the principle of economic and financial security. It means that endowing local governments with state powers should be made with obligatory transfer of economic resources and financial means necessary for their implementation. Public authorities guarantee economic and financial security of the realised state powers to local governments. Endowment of local governments with certain state powers without transfer of necessary and sufficient economic resources and financial means is not allowed. Local governments use the delegated state and municipal powers in the degree provided for economically and financially. The author of the article considers each component of this principle and their application using the court practice experience. For example, in transfers to local governments of the financial means necessary for implementation of certain state powers, the question of calculation of the financial means necessary for local governments to realise them is one of the key problems. The author of article offers his view of this problem.

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