Consequence Evaluation of the Local Government Reform

Abstract

Changes to the Budget Code of the Russian Federation that accompanied the Federal law dd. 27 May 2014, which states that a considerable part of rural settlements' powers is redistributed in favor of municipal areas, assigned some budget sources of revenue to municipal areas. Earlier, these sources were transferred into the budgets of rural settlements. Taking into account the changes in the federal legislation, the author contemplates if it makes sense to preserve the existing form of local self-government in rural areas. The article analyzes the factors preceding the latest stage of the reformation of rural local self-government and evaluates possible consequences for the economy of rural settlements. Studying the case of Moscow Oblast, we consider how spatial factors influence the possibility that rural settlements may exercise their vested powers. It is shown that changes in the federal legislation practically liquidate the two-level system of local self-government, leaving the most insignificant powers within the competence of rural self-government institutions. The article proves that the carried out reforms are generally dictated by an objective inability of the majority of rural settlements to render high-quality municipal services. Due to the economic and social situation of rural settlements, regional authorities will pursue selective policy of reauthorization either by assigning additional powers to the richest municipalities or by delegating more powers to regional and district levels