I. Metshin: "The powers of municipalities should be supported by revenue sources"

(Kazan City KZN.RU, December 15). The meeting of the District Advisory Council on Local Government Development, Association of legislators of the Federation and District Association of the Volga cities is held today under the chairmanship of presidential envoy in the Volga Federal District Mikhail Babich in Orenburg. It is devoted to the analysis of practices implemented in the regions of the Volga Federal District of changes in the federal law on local self-government adopted in 2014-2015, and to discussion of related problems and prospects.

On behalf of the Association of Cities of the Volga its chairman, Mayor Ilsur Metshin, spoke at the meeting. He recalled that the provision of minimum local budgets is one of the state guarantees, fixed at the legislative level. "Legislation in our mandate is constantly changing - said I. Metshin. - Since the adoption of our 131th law 118 federal laws on making changes in it passed! The structure of local budgets in recent years changes in the direction of reducing their own revenues and increasing of depending on the higher budgets. A wide range of powers is mounted for local authorities, but some of them are not supported by income sources or not provided at the appropriate level".

This painful situation is typical for all cities without exception, and does not allow them to solve many pressing issues relevant to residents. Ilsur Metshin noted that in Kazan the funds are still allocated through republican programs, but many other cities do not have such support.

"The situation with the underfunding of powers takes place in all municipalities; it becomes even more urgent in crisis phenomena in the economy. We have repeatedly discussed these issues and the Association of Cities of the Volga region and the District Advisory Council, and came to the conclusion that the solution to this problem is the long-term strengthening of regulations of tax deductions that will provide funding for all the powers of the municipality at the proper level, "- said Ilsur Metshin.

Than in his speech he talked about the consultations conducted by the Association and proposals of municipalities to change the situation.

"14 cities of the association talk in favor of the transfer of the vehicle tax, levied on vehicle owners, to municipal road funds to address urgent issues of the municipality in the construction and repair of city roads. 16 cities suggested consolidation of local budgets from tax payments under the simplified system of taxation and expansion of tax powers of local self-government, as it is envisaged by the Tax Code of the Russian Federation. In 6 regions such decisions have already been taken, particularly in Orenburg in 2015 these payments amounted to 100%, "- said the Mayor of Kazan.

Another problem today is that municipalities have no opportunity to influence the formation of the tax base of property taxes, which is determined on the basis of decisions taken at the regional level and the federal government. As an example Metshin cited the situation with cadastral valuation of land held on the level of the subject, which is sometimes controversial, significantly affecting the level of incomes of local budgets. Representatives of Nizhny Novgorod, Perm, Ufa and other cities made suggestions for consolidation at the legislative level the approval procedure decisions that affect the formation of the tax base with municipalities.

"The standards of minimum budgetary provision for the implementation of local issues and delegated state powers must be determined not at the federal level, but at the regional level, and on the basis of certain parameters they must regulate security in the framework of intergovernmental relations", - said the Mayor of Kazan.

"I sincerely believe that the results of our work that we are taking today will be heard and taken into account in the improvement of legislation and budget system. Further development of all Russian cities and regions depends on the balanced fiscal policy at all levels - from federal to municipal. And it affects the well-being and the future of our people, and then - well-being, stability and the future of Russia ", - Ilsur Metshin summed.