Author: Natalya V. Novikova, Olga G. Pozdeeva and Yulia A. Vaskina

Abstract: To develop local government it is necessary to introduce measures targeted at specification of the scope of the authority of local government and their synchronization with financial support of fulfilling duties associated with this authority as well as at creation of effective mechanisms ensuring development of cooperation between municipalities. It is only possible within the state’s regional policy. Development of а socio-economic sphere of society’s life is the most important direction in the state’s regional policy, and presently federal and regional authorities pay considerable attention to this problem. Legislation on budget process has significantly undermined independence and possibilities of local government. The analysis of structure and volume of grants from Sverdlovsk oblast’s budget to municipalities allows authors to conclude about inadequacy of methodological approaches to funding activities at the expense of higher-level authorities. Unified methodological approaches to financing projects together with the federal budget if a municipality is not able to implement them on their own are required.

Keywords: state regional policy; municipality; strategic planning.