Fiscal Revenue of Municipal Districts: the Ways to Increase

A common thing today is to see how small municipal formations fade, which is reflected in decrease in the life quality of local population, in a loss of investment attractiveness and a lack of development prospects. The problem is that most of the municipalities are highly subsidized, that is, to maintain the development of the municipality's territory, a large amount of subsidies and other gratuitous revenues are allocated there. As a result, an extremely low revenue base of the municipality itself, that includes tax and non-tax budget inflows. To solve the problem of low municipal revenues, there are mainly two ways: increasing tax and non-tax revenues and attracting more donations. In this paper, three really feasible and applicable methods that have been successfully applied by the authorities of some municipalities are presented: self-taxation of citizens, commissioning of unrecorded land and property objects, and the use of the patent system, as well as reasonable tax legislation related adjustments: split of some federal and regional taxes. Thus, the results of the presented analysis can be of high use for decision-making of local authorities, connected with an increase of their own revenue base.