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INSTITUTIONALIZATION OF THE LOCAL SELF-GOVERNMENT: STATE AND PROSPECTS FOR DEVELOPMENT

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PDF: Author(s): Kosinsky P. D., Wolfson E. N.,
Number of journal: 3(52) Date: August 2020
Annotation:

The article explores the institutionalization of the local self-government and assesses its development. It has been revealed that the process of reforming the local self-government at all its stages did not take into account the financial and economic potential of municipalities. Subsequent institutional changes expressed in the legislation adopted did not change the current situation. They are aimed mainly at consolidating the institution of the local self-government, although a formal approach was allowed, which was based on the principle of population, without taking into account regional specificities. The issue of financial security of municipalities is not reflected in the adopted laws. Insufficient financial resources allocated to the local-level spending obligations are being compensated through higherlevel grants to eliminate conflicts between different levels of the budget system caused by the low statutory revenues of local budgets and grants, and counterbalanced by the counter-financial flows. The consequence of this is the stagnation of development of the local self-government expressed in formation of the economic and organizational nonconformance of municipalities, creates stagnant phenomena and forms the subject of performing superior installations. Legislation regulating the direct election of heads and appointing them as a representative body violates the principles of IAS organization enshrined in the European Charter, which carries risks of strengthening the vertical of state power and can contribute to processes affecting the political system and its degradation in general. In order to improve the financial basis of municipalities, it is proposed to develop productive forces in the territory through the support and participation of small and medium-sized enterprises; initiate reorganization procedures of the failed municipal entities with further formation of productive forces on their territory.

Keywords:

institutionalization, local self-government, reform, local budget, tax revenues, budgetary security, inter-budget transfers, municipal entities, reorganization procedures, productive forces.

For citation:

Kosinsky P. D., Wolfson E. N. Institutionalization of the local self-government: state and prospects for development. Business. Education. Law, 2020, no. 3, pp. 59–64. DOI: 10.25683/VOLBI.2020.52.332.