Decentralization of Budget System as the Organizational Basis of the System of Local Self-Government

Abstract

The article analyses the opportunities of budget decentralization in the light of forming and functioning of local self-government system. The author exposes factors, determining a correlation of centralization and decentralization. A great attention is paid to the principles of expenditures responsibilities demarcation, to the problem of taxes` revenues fixing and to variants of regulation of vertical and horizontal inequalities in state budget system. The article exposes the role of local selfovernment as basis of federal state system. As a result, the author proposes a revenues structure on local and regional level with variant of local taxation system.