Financial management in municipalities

Abstract

The purpose of the study is to identify current issues in the process of financial management in municipalities and propose ways to solve them based on the study of theoretical and practical aspects of financial management in municipalities. The subject of the study is the financial relations of municipalities. The research methods used were general scientific (sources research, analysis, abstraction, formalization, thought experiment, deduction, synthesis, and classification) and empirical (coefficient method, absolute indicators method, balance method, and vertical and horizontal analysis) ones. The issue of the discrepancy between positive cash flows to municipal budgets from internal sources and their expenditure side has been studied. It has been proposed to pay attention to measures to expand the potential for forming the revenue side of the budget of the Adyge-Khablsky municipality in Karachay-Cherkessia or to make better use of existing reserves. The application sphere is the budget system of the Russian Federation, namely the finances of municipalities. Further research should be aimed at substantiating the methodology for using reserves to strengthen the revenue side of municipalities, an algorithm for identifying issues and opportunities to strengthen the financial management system of municipalities, and making proposals to improve certain standards regarding municipal finances.