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Economic strength of territorial units is one of the most important factors for the economic development of the government. And for the economic stability of the territorial units it is crucial to have high level of financial decentralization and the ability to provide their budget revenues with their own tax sources, which is guaranteed by effective fiscal politics from the government. Some reforms have been going on in Georgia for decades in order to have financial decentralization and to improve the quality of budget independence, but in order to improve modern situation in this field it is necessary to develop a system of specific actions. Therefore, the problem of tax revenue optimization of territorial units is gaining more urgency and we believe that identifying the factors hindering the improvement of the tax revenues of the budget of the territorial units and taking certain actions and measures to solve them will significantly contribute to the socio-economic development of the territorial units. While working on these issues, the study of the problem was done mainly using characteristic and quantitative research methods. In terms of characteristic research we managed to get information in-depth about the main topic and then we managed to process and analyze this information. In terms of quantitative research, we were mainly guided by statistical information of the revenues of the budgets of the territorial units. Quantitative data were processed in accordance with the objectives, on the basis of which specific trends of the problem were identified. Based on the analysis of the information collected through the mentioned methods, the relevant conclusion-recommendations were formed. The issue of ownership of natural resources is important for the economic development of territorial units. Natural resources should be used in such a way to maximize the growth rate of economic development of territorial units. Part of the value added that is created as a result of industrial-economic relations using natural resources should be transferred by using the budget-tax mechanism to the budget of the municipality and/or, as it is in our case, the budget of the Autonomous Republic. Clearly, the same principle must be maintained in terms of the use of other industrial resources. Effective use of fiscal policy instruments can create a structure of tax revenues for the budgets of territorial units, the volume of which will depend on the efficient use of resources in the territorial unit. Public policy in the field of regional finance should reflect the economic activity of the region, which can provide increased productivity in the region, increased value added measures in the region, job growth and, ultimately, the well-being of the region's population. In modern conditions, budget relations in Georgia are based on the principle of independence (autonomy), however, the dependence of different levels of budgets on central budgets is very high. The share of tax revenues in the budget revenue structure of the Autonomous Republic of Adjara is more than 95% of the total revenues. This proportion is acceptable at first glance, but it is formed to the budget of the Autonomous Republic by income taxes of individual entities and it is effective, for the most part, from a fiscal point of view. It has less regulatory-stimulating character. In the long term perspective, the regulatory-stimulating role in tax-budgetary policy is crucial to achieve the tax revenue growth. Therefore, in our opinion, the use of profit and income tax as a source of tax revenue for the budget of the Autonomous Republic will ensure a more efficient result of both fiscal and stimulus-regulatory functions. Actions and measures that are aimed to increase the tax base of profit tax are possible through the use of economic mechanisms and tools, as we are talking about increasing the number of economic entities and expanding their activities. This mechanism, at the same time, will directly affect the growth of the taxable tax base. The situation in Georgia is also unfavorable in terms of the formation of tax revenues of municipal budgets because all taxes, except property taxes, belong to the central budget. The taxable base of property tax is very small, which is further reduced by the system of benefits provided by the Tax Code of Georgia. Distributed VAT is the main tax source for filling the budgets of municipalities. The existing mechanism of its distribution is ineffective. By using this mechanism, each municipality receives an almost fixed amount of money each year for the formation of the revenue portion of their budgets. It does not matter if the municipality is economically active or passive; it still receives almost the same amount of distributed VAT as it received in previous periods. This mechanism has lack of the role of stimulating economic development. Therefore, we believe it is necessary to develop mechanisms of geographical area for determining the value-added value created in a particular municipality. The amount of VAT paid by a VAT payer registered in the territory of this municipality should become the main criteria of the VAT distribution mechanism. In addition, in order for municipalities to be able to actually finance their functions, it is necessary to increase the percentage of VAT that is distributed

The article considers the problematic issues of the development of the tourism industry in the Russian Federation. In the context of global challenges, the tourism sector of the Russian Federation retains significant potential to accelerate growth and strengthen its role in the development of the economy. On the example of individual tourist projects, the author summarizes and identifies possible areas of activity of public authorities. The study makes comprehensive proposals for the development of the tourist destination at the territorial level, including in the preparation of strategic documents, the adoption of regulatory measures on the business activities of the self-employed in the tourism sector, increasing the revenue base of local budgets through the development of tourism through the introduction of an additional fee.

The article examines current issues in initiative budgeting (IB) development in the Russian Federation on the basis of empirical data accumulated during the monitoring of IB development since 2015. The methodology for organizing monitoring and analysis of the received data, developed at the Initiative Budgeting Center of the Financial Research Institute of the Ministry of Finance of the Russian Federation, makes it possible to assess the development dynamics by key indicators, to identify trends, and to formulate current problems in IB development in the Russian Federation. The accumulated information on initiative budgeting provides ample opportunities for constructing analytical variables calculated through aggregation of the data from the primary mass of information. The article outlines approaches to examining various forms of initiative budgeting, and provides some results of a comparative analysis of various types of practices used in the Russian Federation’s regions to involve citizens in budgetary decisions. One of the challenges in the monitoring organization is the need for regular adjustments of the measurement procedure considering current changes in legislative regulations and the practices of initiative budgeting implementation. As part of the monitoring, a separate study area of municipal IB practices is beginning to take shape. The authors review documents that legitimize IB issues in the Russian Federation and in the Russian regions, in particular, presenting the results of an analysis of state programs in the Russian regions. The article summarizes the current agenda and outlines the development of institutional support for initiative budgeting. The conclusions formulated by the authors include a wide range of proposals for improving the initiative budgeting programs and practices in the Russian regions and the Russian Federation as a whole.

The article considers the system of rationing budgetfunds at the municipal level, aimed at increasing the budget provision. The authors substantiate the options for economic modeling of the cost of municipal services provided at the expense of the budgets of municipalities by the example of the Moscow region.

The main objectives of the interbudgetary process in the Russian Federation are need ofincrease oftax capacity of regions of the Russian Federation, making essentialpart ofthe income ofthe budget of subnational level; increase ofprogressiveness of financial alignment of various regional budgets taking into account high asymmetry in development; need of providing a financial autonomy of municipalities within development ofthe decentralized form ofthe interbudgetary relations. All this complex of tasks is to some extent connected with research of questions of efficiency offormation and management of the budget income at subnational level.

The paper presents the essence, premises of application and sentencing guidelines regarding penalty payments for placement of advertising boards or structures in the public space in violation of regulations and conditions for placement thereof stipulated in the Commune Council resolution (ordinance). Structural elements constituting penalty payments are specified in the Planning and Development Act. The amount of penalty is determined by a decision taken by commune administrator (town mayor, city mayor). The ordinance specifies criteria for establishing the amount of penalty payments, taking into consideration the size of the advertising board or structure and the multiple of applicable advertising fees specified by the Commune Council for a given area or maximum fee recognized in the ordinance. Proceeds from penalty payments constitute a source of municipality’s own revenue, and are included among the so-called non-tax budget receivables.

A municipality’s budget is a tool that significantly affects the long-term economic potential of the area. In addition, it is an important tool for the management of the municipality, in relation to the effective provision of public services for inhabitants. To ensure them, it uses the revenues that the local self-government receives from various sources. The aim of the paper is to characterize and to compare the mechanism of creating revenues of the local self-government in the Slovak and Czech Republic and, at the same time, to analyze the relationships between individual groups of local revenues in the time period 2009–2018. We analyzed the basic groups of municipal revenues: total revenues, current revenues, and capital revenues. For the analysis, we used selected mathematical–statistical methods (trend lines, correlation coefficient). Although both countries were part of one country, both have a dual model of public administration and have undergone fiscal decentralization; the structure and sources of local self-government revenues are different. However, a common attribute is the dependence of local self-government on state revenues. Tax revenues are the most important part of current budget revenues. Despite fiscal decentralization, local budget revenues are dependent on the state. In the Slovak Republic, share taxes from the state represent 74% of the total tax revenues of municipalities, and in the Czech Republic, 85% of the total tax revenues of municipalities.

Growing municipal borrowing is not surprising today because not only municipalities but also the state itself borrows actively. We live in a period when the funds of EU are actively being absorbed, and according to regulations, in order to use these funds, it is necessary, albeit a small part, to add own funds. The borrowing requirement which exists at all levels of government is aggregated, and borrowed funds represent the total public debt. When the need arises, municipalities, like the state, can borrow financial resources, but their borrowing is more regulated than the state. The research problem. The annual public resources generated by municipalities represent only a small fraction of public finance flows circulating in state jurisdiction. The financial situation of municipalities is complicated due to the fact that insufficient funds are allocated from the state budget to ensure the performance of state-delegated functions. This article looks at the answers to questions of what are the reasons for municipal borrowing and what are the opportunities of growing borrowing to continue borrowing? The object of the research is municipal debt. The purpose of the research is to analyze municipal debt and borrowing as a phenomenon and to reveal the borrowing situation of Lithuanian municipalities. The statistical data of the Department of Statistics to the Government of the Republic of Lithuania, the Ministry of Finance of the Republic of Lithuania and the Association of Lithuanian Municipalities were used for the analysis. For the analysis of the municipal debt situation the budget income and expenditures of all sixty municipalities and municipal net annual borrowing were analyzed. Research period is 2005–2014. This choice of the research period allows to partially eliminate the influence of economic cyclicality, because this period covered rapid economic growth after Lithuania’s accession to the European Union, a period of economic recession since 2008, and the last economic recovery period. Based on the analysis, municipal borrowing in Lithuania and other countries is strictly regulated with established borrowing limits and borrowing objectives, usually borrowing is in the domestic banking market for a long or short period. The reasons for borrowing are varied, but usually they are aimed at attracting additional investment by contributing to the borrowed funds of the municipality. In most cases, municipalities pay off in the implementation of EU structural funds projects, to which they themselves have to contribute. In 2013–2014, the debt for these projects amounted to about 50% of all municipal debts. Due to EU projects, debt grows in all municipalities. Another reason for borrowing is related to the increasing trend of municipal functions in Lithuania, although self-generated municipal income is decreasing. All this also becomes the reason for borrowing. The total debt of all municipalities in Lithuania, per capita, is increasing every year. During the analyzed period, this debt increased by 4.68 times. However, the municipal debt of Lithuania compared with the debt of municipalities of other EU countries shows that this debt is not high and has a potential for future growth. However, since 2014, the debt of Lithuanian municipalities, albeit insignificant, has been decreasing. Very similar debt is also in Estonia, slightly more in Latvia. The most indebted are the municipalities of France, Germany, Italy, and the United Kingdom. The growing responsibilities of municipalities in Lithuania reflect the development of active regions, which invest heavily in infrastructure, community projects and economics, and therefore EU funds provide funding to municipalities in implementing targeted projects. On the basis of rules in Lithuania, in order to receive EU funds, the municipality must itself contribute with its own funds to the ongoing project. In such cases, the state gives the municipalities the right to increase their obligations. During the analyzed period, in comparison with the Lithuanian metropolitan municipalities, Vilnius city, Klaipeda City, and Kaunas City municipalities borrowed the most. It is considered that the high level of indebtedness of major cities of Lithuania is determined by both the desire to create an attractive and balanced environment for a large flow of people and business entities to live and work as well as implementation of a large and strategic state infrastructure projects. Borrowing is an inevitable macroeconomic process that can spur economic growth. If borrowed funds are diverted to productive investments and the level of debt does not endanger economic stability, municipalities could increase their debts, of course guaranteeing the repayment of debt in a timely manner. The problem arises when borrowed funds are used only for consumption or short-term projects, thus these funds do not generate the necessary income in order to timely repay the debt, therefore the situation becomes difficult without the additional state financial support. This scientific article is funded by the Research Council of Lithuania according to the project “The evaluation of municipalities’ fiscal competitiveness in the context of economic growth” (2015–2018), registration No. MIP-013/2015.

Objective: to develop the theoretical bases of forming the rent fees for non-residential funds, which constitute the fisc of Ufa municipality, and to identify the opportunities of revenues increase from its use.Methods: abstract-logical, dialectical, comparative, systematic and structural, economic analysis and synthesis.Results: the content is disclosed of the rental fees of non-residential funds constituting the municipal fisc as a cash payment, of compensatory and equivalent character, for the use of the municipality fisc;the necessity is grounded of increasing the budget effectiveness of the municipal non-residential facilities rent, which consists in the proper use of rental fees for maintenance, investments in the renovation and construction of non-residential facilities, the availability of funds for their financing, and the lack of growth in rents above the economically viable threshold;186Экономика и управление народным хозяйствомEconomics and economic managementАктуальные проблемы экономики и права. 2015. № 4Actual Problems of Economics and Law. 2015. No. 4the factors are analyzed which determine the budget revenues from rent, affecting the fiscal efficiency of non-residential facilities rent in Ufa city;a number of problematic issues were identified, of systemic character: reduction of the number of rent contracts; reduction of the rented space;an excessive amount of the reduced rent; arrears of tenants on rents; insufficient quality of the information management system;ways are propose to improve the budget efficiency and profitability of the non-residential rent, consisting in the transition of non-residential buildings and premises, which are in economic conducting or in operational administration or are unused (unregistered), into the rent regime with the establish- ment of feasible rental fees; expanding the number of premises, the rental fee for the use of which is determined by bidding; reduction of benefits to commercial organizations for the rent payment; providing full and timely transfer of the arrears from tenants to the budget; acceleration of the formation of the automated system for mass valuation of real estate, allowing to automate the forecast of budget revenues from non-residential funds renting.Scientific novelty: the necessity is grounded to increase the budget effectiveness of the municipal non-residential facilities rent, the definition is formulated of the non-residential facilities rent of the municipal fisc and factors of its growth.Practical significance: the findings and conclusions of the article can be used in the budget efficiency management of the non-residential facilities rent, as well as in research and teaching activities.

Participatory budgeting as a tool of deliberative democracy is more and more popular in Polish cities. Literature review shows that there is no one the best procedure. Comparing with the typology of participatory budgeting based on European perspectives, the most of Polish cities has chosen model similar to "Porto Alegre adapted for Europe". The weakest link of the Polish approach is to put too much efforts on the projects contest and much less on good-quality deliberation. The case study presented in the last part of the paper shows that each next edition of participatory budgeting contributes to raising awareness and better understanding of the urban development challenges and it should lead to changes the procedures from voting approach to participatory governance approach.

The paper investigates the problems of the financial security of local government activity. With the example of municipal rural settlements of Kemerovo Region’s Belovo District, the author demonstrates the possibility of solving thess problems by amalgamating. Conclusion is drawn that under existing legislation it is one of the ways of improving the financial security of local governments.