Improving financial incentives of investment activity and innovative development of the municipalities

Abstract

The article considers the main approaches to improving the financial incentives of investment activity in municipalities. Are summarized changes to the legislation on the formation ofthe revenue base the municipal budgets. Suggest ways to improve theformation of the expenditure part of local budgets, aimed at activation of investment and innovation at the municipal level.

Keywords

• financial incentives
• the budget process
• municipalities
• investment activities
• innovative development
• fiscal capacity
• budget equalization
• municipalfinancial control
• performance audit