Improving the Interbudgetary Equalization System of the Municipal Entities of Perm Krai

Over the past decade, significant changes have occurred in the regulation of interbudgetary relations in the Perm Krai. However, the situation in the municipalities is a critical. Municipal budgets are 65% dependent on subsidies. The scientific novelty of the work consists in evaluating and describing the effectiveness of the existing system of inter-budgetary alignment of municipalities in the Perm Krai. In our study, we came to the conclusion that the system of budget equalization is not sufficiently developed in the Perm Krai. According to the results of the analysis, we can say that the problem of differentiating the level of budgetary provision of municipalities is clearly traced. There is a deviation in the level of average budgetary provision in a number of municipalities from the minimum. The regional authorities prefer to finance projects of developed municipalities than developing ones. We have identified and outlined the following solutions: it is necessary to develop a direction for providing the authorities with a personnel reserve; eliminate the imperfection of law support; improve the quality of existing regulatory instruments; debug the mechanism of compliance of powers between different levels of government in the Perm territory; to increase the effectiveness of intergovernmental planning; increase the financial independence of territorial governing bodies.