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On The Financial Foundations Of Local Self-Government In The Russian Federation

Original Language Title: О финансовых основах местного самоуправления в Российской Федерации

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spent power from January 1, 2009 -Federal Law of 06.10.2003 N 131-FZ RUSSIAN FEDERATION FEDERAL LAW On the financial basis of local self-government In the Russian Federation adopted by the State Duma on September 10 1997: (In the wording of federal laws of 09.07.99) N 159-FZ; dated 29.06.2004 N 58-FZ; of 28.12.2004 N 183-FZ) This Federal Law defines the basic principles of the organization of local finances, establishes the sources of formation and direction of the use of financial resources of local government, the foundations The budget process in municipalities and the relationship of local governments with financial institutions, as well as guarantees of the financial rights of local governments. G l in a I. GENERAL PROVISIONS C and I am 1.(Overtaken by Federal Law of 09.07.99) N 159-FZ) C t I am 2. Local finance 1. Local finances include local budgets, government and municipal securities owned by local governments, and other funds. 2. The formation and use of local finances is based on the principles of autonomy, public financial support and transparency. 3. The rights of the owner in respect of local finances shall be exercised on behalf of the inhabitants of the municipality by local authorities or by the public directly in the municipality, in accordance with the charter of municipal education. C but I am 3. The legislative framework for local finance 1. The formation and use of local finances are carried out in accordance with the Constitution of the Russian Federation and the federal law on general principles OF THE PRESIDENT OF THE RUSSIAN FEDERATION the local authorities. 2. The provisions of this Federal Act apply to all municipalities. With regard to the closed administrative-territorial entities, this Federal Act is in force in the form of not contrary to the Russian Federation Act "About Closed Administrative-Territorial Education". C is I am 4. Participation of the public authorities in the solution of the local finance organization 1. The State authorities of the Russian Federation and the authorities of the constituent entities of the Russian Federation contribute to the development of local finances in accordance with the procedure provided by the legislation of the Russian Federation and the legislation of the entities. of the Russian Federation. To this end, these bodies, respectively: 1) regulate relations between the budgets of the constituent entities of the Russian Federation and local budgets, as well as between the federal budget and local budgets, within the framework of federal targeted programmes; 2) participate in local matters through federal targeted programmes and regional programmes; 3) allocate funds for federal targeted programmes and regional programmes. programmes and other activities, between municipalities, control of effective and targeted use of these funds; 4) develop state minimum social standards, establish social norms; 5) provide methodological assistance to local governments In the work on the formation and execution of local budgets; 6) monitor the compliance of local governments with the tax and budget legislation of the Russian Federation and the legislation of the constituent entities of the Russian Federation; 7) perform other functions according to OF THE PRESIDENT OF THE RUSSIAN FEDERATION 2. When the local authorities are vested with separate State powers, the material and financial resources of the constituent entities of the Russian Federation are simultaneously transferred to the constituent entities of the Russian Federation. in order to be able to exercise these powers. 3. The increase or decrease in local budget revenues resulting from decisions taken by the State authorities of the Russian Federation or by the authorities of the constituent entities of the Russian Federation are compensated by the bodies, Action taken by the Committee The amount of compensation shall be determined at the same time as the appropriate decision. Local governments have the right to take up the decisions of the public authorities, which increase the costs or decrease the income of local budgets, within the limits of funds transferred to them as compensation. G l in a II. { \cs6\f1\cf6\lang1024 } { \cs6\f1\cf6\lang1024 } { \cs6\f1\cf6\lang1024 } { \cs6\f1\cf6\lang1024 } { \cs6\f1\cf6\lang1024 Local budgets 1. Each municipality has its own budget and the right to receive budgetary regulations from the federal budget and the federal budget of the constituent entity of the Russian Federation in accordance with this federal budget. OF THE PRESIDENT OF THE RUSSIAN FEDERATION 2. The formation and execution of the local budget is carried out by the local self-government bodies independently in accordance with the charter of municipal education. 3. State authorities guarantee: 1) the right of representative bodies of local self-government to independently determine the use of local budgets; (2) the right of representative bodies of local government Self-governance of the unencumbered balances of local budgets formed at the end of the fiscal year as a result of increased revenues or expenses; 3) compensation for increased costs, or the income of local budgets that have arisen as a result of The adoption of federal laws and the laws of the constituent entities of the Russian Federation, as well as other decisions of the public authorities. 4. The local budget is established through the application of a common methodology, state social standards, social norms established by the public authorities. 5. State authorities of the constituent entities of the Russian Federation in the process of implementing budgetary regulations and local authorities in the process of forming local budgets shall be guided by the State social floors. standards, social norms, minimum budget standards. 6. Estimates of income and expenditures of individual localities other than municipalities may be included as part of local budgets. The procedure for the development, approval and execution of these estimates is determined by the local self-government bodies independently in accordance with the charter of municipal education. 7. The head of municipal education, other local government officials are responsible for the execution of local budgets in accordance with federal laws, the laws of the constituent entities of the Russian Federation and the statutes of municipal entities. 8. Local governments report on the implementation of local budgets in due course. C t I am 6. The revenue part of local budgets The revenue part of the local budgets consists of its own revenues and income from the regulatory income, it may also include financial assistance in various forms (grants, subventions, funds financial support for municipalities), means of mutual settlement. C t I am 7. Own revenues of local budgets 1. Local budgets include local taxes and fees, other own revenues of local budgets, the share of federal taxes and the share of taxes of the constituent entities of the Russian Federation, which are fixed for local budgets on a permanent basis. These taxes and fees are transferred to local budgets by taxpayers. 2. Local taxes and duties include taxes and fees established by federal laws. 3. Other local budgets include: 1) revenues from privatization and municipal property; 2) at least 10 per cent of the proceeds from the privatization of state property in the territory Municipal education under the State Privatization Programme;(Paragraph 3, subparagraph 2) was suspended from 1 January to 31 December 2002 in terms of the proceeds from the privatization of federal property- Federal law dated 30.12.2001 N194-FZ) 3) revenues from rental of municipal property, including rent of non-residential premises and municipal lands; 4) royalties and natural resources established under of the Russian Federation; 5) revenues from municipal monetary lottery; 6) fines to be transferred to local budgets in accordance with federal laws and federal subjects of the Russian Federation THE RUSSIAN FEDERATION; 7) of the Russian Federation; 8) not less than 50 per cent of the property tax on enterprises (organizations); 9) income tax from individuals engaged in business without The education of a legal person.(Paragraph 3, paragraph 9, is suspended for 2001, Federal Act No. N 150-FZ 4. The local budgets also include the proportion of federal taxes distributed between budgets of different levels and assigned to municipal entities on an ongoing basis in the manner provided for in paragraph 5 of this article. The specified revenues include: 1) part of personal income tax from individuals up to at least 50% on an average of the constituent entity of the Russian Federation; 2) part of the income tax of the organizations within the bounds of 5 per cent on average of the constituent entity of the Russian Federation; 3) part of the value added tax on domestic goods (excluding precious metals and precious stones from the State Fund) of the precious metals and precious stones of the Russian Federation), not less than 10 % of the excise duties on alcohol, vodka and alcoholic drinks, within 5% of the federal subject of the Russian Federation; 5) part of the excise duties on other species Excise goods (except excise taxes on mineral commodities, petrol, cars, imported excisable goods) up to a maximum of 10 per cent on the subject of the Russian Federation. 5. The minimum percentages of federal taxes established for municipal entities on a permanent basis in accordance with paragraph 4 of this article shall be determined by legislative (representative) bodies of the constituent entity of the Russian Federation. THE RUSSIAN FEDERATION The calculation of the share of federal taxes to be reserved for municipal entities is based on the total amount transferred to the constituent entity of the Russian Federation for each of these taxes. Within these limits, the legislative (representative) body of the constituent entity of the Russian Federation establishes, in accordance with the fixed formula for each municipality, the proportion of the relevant federal taxes laid down on a permanent basis. OF THE PRESIDENT OF THE RUSSIAN FEDERATION The percentage of these taxes is calculated based on the actual base year data. The top of these shares the legislative (representative) body of the constituent entity of the Russian Federation may set the rules for the allocation (in per cent) of the local budgets of the regulatory income for the planned fiscal year, as well as on a long-term basis (not Less than three years). 6. Local budgets may also include other payments established by the legislation of the Russian Federation and the legislation of the constituent entities of the Russian Federation. 7. If there are other municipal education within the boundaries of the territory of the municipality (except the city), the sources of income of local budgets are drawn between them by the law of the constituent entity of the Russian Federation. At the same time, each municipality is established on a permanent basis (in whole or in part) its own taxes and duties, and other local revenues. In the case of inner-city municipalities, such consolidation of taxes and fees, other local income, is regulated by the charter of the city. C but I am 8. Powers of local governments on the formation of local budgets 1. Local authorities are entitled: (1) to impose local taxes and levies on their payment in accordance with federal laws; (2) in accordance with Russian law The Federation shall decide on the establishment or cancellation of a local tax and fee on the amendment of its payment. The decisions taken shall be published at least one month in advance of their entry into force. 2. Local governments have the right to receive taxes in the local budget, stipulated by the laws of the Russian Federation and the laws of the constituent entities of the Russian Federation, from branches and offices whose parent enterprises are located outside the territory of the Russian Federation. Municipal education. 3. The municipality can directly decide on a one-off voluntary charge of citizens in accordance with the charter of municipal education. Self-assessment tools collected according to these decisions are used exclusively for the purpose intended. Local governments shall inform the public of the municipal education about the use of the means of self-assessment. C t I am 9. The basic principles of inter-budget relations, means and order of budget regulation 1. The organization of the inter-budgetary relations of local self-government bodies and bodies of state power of the constituent entities of the Russian Federation is carried out on the basis of federal laws and the laws of the constituent entities of the Russian Federation. 2. Interbudgetary relations are based on the following principles: mutual responsibility; applying a single-specific methodology for all municipalities; income equalization municipal entities; maximum possible reduction of financial flows; compensation to local budgets in the event of loss of income or increased costs arising from decisions taken by bodies State power; Local governments ' interest in increasing their own revenues to local budgets; transparency of inter-budgetary relations. 3. Local budget funds include: 1) regulatory contributions from regulatory income; 2) grants and subventions to local budgets; 3) funds from the financial support fund of the federal budget and the budgets of the constituent entities of the Russian Federation. 4. The ratios (as a percentage) of the regulatory revenue, as well as the percentage (percentage) of the funds allocated from the municipal finance support fund, are established by applying a single methodology developed by the bodies OF THE PRESIDENT OF THE RUSSIAN FEDERATION 5. The procedure for the granting of subventions shall be established by the normative legal acts of the public authorities. Those authorities monitored the earmarked funds. 6. The actual increase in local budgets in the current fiscal year, as a result of financial and economic activities in the municipality, cannot be used as a basis for a reduction in the next financial year. by the State authorities of the constituent entity of the Russian Federation (as a percentage) of the regulatory income in the local budgets, as well as the proportion (in percentage) of municipal entities allocated from the financial support fund Municipal entities. 7. In resolving the issue of financial assistance to municipalities, the State authorities of the constituent entity of the Russian Federation are entitled to verify the validity of financial assistance and, after the adoption of a positive decision, Check the adequacy of measures to increase the incomes of local budgets, compliance with the legislation of the Russian Federation on spending the funds of local budgets, including their intended use. 8. The State authorities of the Russian Federation and the State authorities of the constituent entities of the Russian Federation are entitled to monitor the expenditure of the funds allocated to municipalities for the implementation of the federal targeted and regional programmes, as well as in the form of subventions. C t I am 10. Procedures for the formation and operation of the fund financial support for municipalities in the constituent entity of the Russian Federation 1. The Foundation for the Financial Support of Municipalities is established in the budget of the constituent entity of the Russian Federation. 2. The funds of the fund of financial support of municipal entities are formed by deductions from federal and regional taxes received in the budget of the subject of the Russian Federation. 3. The allocation of funds to the municipal education fund is in accordance with the fixed formula, which takes into account the population of the municipality, the proportion of children of pre-school and school age in general The population of the municipal education, the proportion of the population of retirement age in the total population of municipal education, the area of the municipal education, the level of per capita in the municipal budget education, as well as other factors determining the characteristics of the of the Russian Federation 4. The share of each municipal entity in the total amount of the fund of financial support of municipal entities is fixed in% and is approved by the law of the subject of the Russian Federation on the budget of the subject of the Russian Federation. 5. The transfer of funds to local budgets from the municipal finance support fund is carried out on a monthly basis by all municipalities eligible for financial assistance. 6. Information on the actual level of funds for municipal education funds is published monthly in the mass media. C t I am 11. The basis of the budget process in the municipal education 1. Local self-governance bodies are responsible for drafting the budgetary process in this municipality, in accordance with the general principles of the budgetary process established by federal laws and laws of the Russian Federation 2. The preparation of local budgets, approval and execution of local budgets are carried out in accordance with the Russian Federation's budget classification and the budget classification of the constituent entity of the Russian Federation. 3. The decision on the goals, forms and amounts of long-term (over one year) borrowings shall be made by a representative body of local government in accordance with the procedure established by the charter of municipal education. 4. In case the local budget is not approved before January 1 of the planned financial year, the local budget shall be spent on the appropriate articles of the local budget until the local budget is approved. The financial year is monthly in the amount of one twelfth of the actual expenditure, taking into account the consumer price index. 5. The monitoring of local budgets is carried out by representative bodies of local self-government. Local governments have the right to draw on auditors for this purpose. Local authorities publish information on the performance of the local budget for the last fiscal year. 6. Municipalities shall provide, in due course, information on the performance of local budgets in the Federal Service for State Statistics. (In the wording of Federal Law dated 29.06.2004 N 58-FZ C t I am 12. A part of the local budgets 1. The local budgets include: (1) the costs of resolving questions of local importance established by the legislation of the Russian Federation and the legislation of the subject of the Russian Federation; (2) costs, related to the exercise of individual public powers transferred to local governments; 3) costs related to the servicing and repayment of municipal loans; 4) service and repayment of municipal loan debt; 5) Provision for municipal employees ' insurance, municipal property and civil liability and business risk; 6) other expenses provided for in the charter of municipal education. The order of performance of the expenditure part of the local budget is established by the charter of municipal education or other legal act of the local government. 2. The placement of a municipal order for the work (provision of services) financed from the local budget shall be carried out on the basis of an open competition, the rules of which shall be established by a representative body of local self-government. The employer on the municipal order for the execution of the works (provision of services) financed from the local budget is performed by the local government bodies or officials. G l in a III. PARTICIPATION OF LOCAL AUTHORITIES SELF-GOVERNMENT IN THE FINANCIAL-CREDITATION RELATIONSHIP C The legal basis for the relationship of local self-government to financial-credit organizations 1. Local governments perform the functions of organizing local finances in cooperation with financial and credit organizations operating both within and outside the respective municipal education. 2. Local governments promote the development of the local finance market and local finance and credit institutions. 3. Local authorities in accordance with the procedure provided by the legislation of the Russian Federation and the legislation of the constituent entities of the Russian Federation have the right: 1) to choose from among the banks the authorized bank by means of an open bank Competition; 2) to issue municipal bonds and housing certificates. 4. Local governments are not entitled to transfer funds to local budgets and land plots in municipal property to the authorized capital (capital) of banks and other credit institutions. C and I am 14. Local Government Relations with Tax Authorities and Territorial Federal Treasury dated 29.06.2004 N 58F) 1. The interaction of local governments with tax authorities is based on: (In the wording of Federal Law 29.06.2004 N58-FZ) (1) coordinate and join efforts to control the timely and full revenue of all types of tax payments, including local taxes and fees; 2) providing the necessary information. 2. The local government representative body has the right to create a municipal tax service to collect local taxes at the expense of the local budget. The activities of the municipal tax authorities are carried out in accordance with the Law of the Russian Federation " On taxation authorities of the Russian Federation in the part relating to the conduct of local self-government. The Municipal Tax Service unites and coordinates efforts with the tax authorities to monitor compliance with the tax legislation of the Russian Federation. The municipal tax office is obliged to provide the Federal Tax Service with all the necessary information. (In the wording of Federal Law of 29.06.2004) N 58F) 3. Local authorities cooperate with the territorial bodies of the Federal Treasury on the basis of State interests and mutual provision of information. (In the wording of Federal Law of 29.06.2004) N 58-FZ) 4. Local governments have the right to conclude agreements with the territorial bodies of the Federal Treasury for servicing the local budgets. In this case, the powers of the territorial bodies of the Federal Treasury are extended to organizations carrying out operations with local budget funds. The territorial bodies of the Federal Treasury have no right to refuse local governments to conclude such agreements. (In the wording of Federal Law No. N 58F) 5. In order to administer local treasury and service the local budget, a representative body of local government has the right to create a municipal treasury at the expense of the local budget. C t I am 15. The relationship of local governments with financial-credit organizations 1. The local governments, through the territorial bodies of the Federal Treasury and in accordance with the concluded agreement, are entitled to entrust the authorized bank with the following functions: Law of 28.12.2004 N 183-FZ) 1) cash execution of local budget; 2) cash services of local governments; 3) location (investment) of surplus local budget funds by purchase State and municipal bonds, with mandatory deposit of income in the local budget; 4) the placement of municipal bonds and municipal lottery tickets. The parties are liable under the law of the Russian Federation and under the terms of the contract for failure or improper performance of the obligations under the contract. 2. In accordance with the legislation of the Russian Federation, local governments have the right: 1) to grant the loans provided for in the local budget to legal entities and individuals, provided that the expenditure of local resources is secured (b) To obtain short-term and long-term loans from banks and other credit organizations under conditions agreed upon with representative bodies of local government. C t I am 16. Municipal loans 1. The municipal loan contract is concluded by the acquisition by a citizen or legal person of municipal bonds issued by the local government. 2. The municipal bonds are issued solely for the purpose of implementing programmes and projects for the development of municipal education approved in accordance with the procedure established by the charter of municipal education. 3. Municipal bonds are issued with municipal property and local budgets. 4. The procedure for issuing municipal bonds is determined by the legislation of the Russian Federation. 5. The State is not responsible for the obligations of municipal education, and municipal education is not responsible for the obligations of the State. 6. The performance of municipal bond obligations is carried out at the expense of the local treasury in accordance with the local government's legal act on the local budget for the current fiscal year. 7. The maximum allowable amount of debt obligations of local governments should not exceed 15 per cent of the local budget expenditure. Short-term borrowing in any form cannot be carried out prior to approval of the local budget for the current fiscal year. 8. The placement, circulation, distribution (sale and purchase) of municipal bonds are carried out in accordance with the legislation of the Russian Federation. G l in a IV. CONCLUDING STATEMENTS C, I am 17. To bring regulatory legal acts into compliance with this Federal Law 1. Invite the President of the Russian Federation, the Government of the Russian Federation and the legislative (representative) bodies of the constituent entities of the Russian Federation to bring their normative legal acts into conformity with this Federal Act in the course of the year. Three months from the date of its entry into force. 2. The normative legal acts of the Russian Federation and the normative legal acts of the constituent entities of the Russian Federation shall be applied in accordance with this Federal Law in a way that is not contrary to this Federal Act. C but I am 18. Entry into force of this Federal Law This Federal Law shall enter into force on the date of its official publication. President of the Russian Federation B. Yeltsin Moscow, Kremlin 25 September 1997 N 126-FZ