Keyword: «municipal finance»

Municipalities in the Russian Federation are currently in most cases highly dependent on higher-level budgets. For the development of cities, regions and the country as a whole, existing problems should be identified and solved. The key task for the near future should be the modernization of the existing budget mechanism of municipal formations – thus, a more reliable algorithm should be developed for estimating planned revenues and expenses for a more accurate prediction of possible future problems. In addition, there is the problem of optimizing budget expenditures, which adversely affects the performance of social functions of the state. A possible solution may be a more efficient use of non-tax and tax revenues, a reduction in the staff of the bureaucratic apparatus while preserving its functions, and more.

The creation of an effective financial management system at the municipal level is one of the key tasks for each municipality in modern conditions. The assessment of the quality of municipal financial management by the financial authorities of the regions makes it possible to identify the financial capabilities of municipalities, strengths and weaknesses in the activities of local governments by determining the best and worst indicators of the quality of financial management. In this regard, the main purpose of the article is to study the system of monitoring and evaluating the quality of municipal finance management conducted annually by the Ministry of Finance of the Republic of Karelia, as well as to analyze the results of this monitoring based on the results of the last five-year plan. And after receiving the results of the analysis, formulate the main problems of assessing the quality of municipal financial management and submit proposals for their solution.