PROMOTE DEVELOPMENT OF SMALL BUSINESS IN MUNICIPAL

Abstract

Russia is entering a nascent next global economic crisis with a tendency of low economic growth rates and insufficient export demand for raw energy sources. In such conditions, state authorities as the most important task to search for new sources of income for the country. One of them may be the development of small and medium-sized enterprises, forming in economically developed countries from 50 to 60% of GDP. Today, Russia has already adopted numerous regulatory documents governing the development and promotion of small business. However, at the municipal level, where small business is actually emerging, there is no incentive for government officials to support it. This is largely due to the basic principles of building a budget system for the distribution of powers between the center, regions, municipalities, as enshrined in the Budget Code of the Russian Federation, and the corresponding financial policy. The purpose of the study is to develop proposals to stimulate the interests of the local administration in the development of small businesses in the current legal field of intergovernmental relations regulated by the Ministry of Finance of the Russian Federation. The study was conducted on the basis of statistical materials from the Office of the Federal Tax Service for the Kursk region and the Finance Committee of the Kursk region. It is proved that the main indicator for identifying trends in the development of small business in municipalities may be the dynamics of a single tax levied on a simplified taxation system. Suggestions were made to the recommendations of the Ministry of Finance of the Russian Federation, contributing to an increase in the revenue base of budgets of municipalities in the Kursk region, depending on the dynamics of small business development.

Keywords

• local budgets
• tax revenues
• small business
• financial incentives