In some countries, additional taxes are set to waste management, energy consumption, etc. Non-tax revenues take a modest place in the total revenues of local budgets.

Their weight varies in different countries, from 10 to 30% of total revenues.

An important source of revenue for local budgets are subsidy. Their share in the revenues of local budgets in many countries is 20-40%. Subsidies are a special form of communication - the financial and economic - between the individual links in the budget system and essentially determine the direction of the financial activities of local authorities, allowing for the control of central government to local governments. In its economic essence subsidies are close to sources of tax, as they are based on taxes received by the disposal of the central government and transferred to the order of income redistribution to local governments. Subsidies are caused by the constant scarcity of large budgets. Subsidies Subsidies are classified into general and special purpose.

Grants for general use (or subsidies) available to cover shortfalls in local budgets. They give local authorities some discretion in the use of funds, contain fewer facilities and limits the use of resources.

Subsidies purpose (subvention) is provided to local governments to finance specific programs or projects. In France and the UK is dominated by subsidies in the U.S., Italy, Germany, Japan - subventions. The constant lack of own revenues to finance current operations on the one hand, and the need for cash in the event of economic and social infrastructure, on the other hand, forcing local authorities make extensive use of such a mechanism and funding as loans. The most widely used local long-term loans - mortgage bonds and municipal bond issues. Term of mortgage bonds of 10-15 years. Payment of interest on them is provided by the sum total of taxes and revenues of local authorities. These loans are the most stable and most in demand. Municipal bond issues are available for a period of 10 to 16 years, but most of all - for 40-60 years. The main form of short-term loans are bonds. They are available for up to one year, and in some countries - up to 4 years.

Expenditures of local budgets depend largely on fiscal policies in the state, the degree of decentralization of the social sphere. All of this is the decisive factor in the amount of financial resources that pass through the local budgets, their share in the national budget expenditures.

Ratio of expenses that pass through the different types of budgets, in different countries varies. For example, in Finland, Germany, Norway, France, at the expense of territorial budgets spent more money than from the central. Differences in the size of funds flowing through the different types of budgets, due to certain levels of financial responsibility of the central and regional authorities for the implementation of social programs, mainly the financing of which is the largest part of budgetary expenditures.

From local budgets are carried out cost to the economic and social infrastructure: local transportation, water, gas, construction of schools (in Germany, these costs amount to one quarter of local budget expenditures in Japan and France - more than 1 / 3, and in the budgets of the UK and U.S. - over 40%), hospitals and other social institutions. The share attributable to local authorities in the financing of urban renewal, beautification of industrial zones in the appropriation for municipal and residential construction. By the cost of local budgets also include expenses of the local administration, police and judiciary, in transport and road construction. At the expense of local budgets and health care is financed. For example, in Norway, Sweden, Finland, these costs constitute more than 50% of budget expenditures.

One of the significant items of local budget expenses are the costs associated with repayment of loans and interest payments on them. For example, in France to pay interests on loans and loans have to allocate more than 10%, while the repayment of loans - about 20% of total expenditure budgets of municipalities.

The next link local finance other developed countries are special local funds that are usually targeted. For example, by using special credit funds local authorities spend overdraft transactions at the expense of social insurance fund targeted social programs. In some countries, special funds are covered by the temporary cash "gaps" that are produced in the performance of local budgets. The sources of formation of these funds are borrowed funds, special fees (insurance), the income of the central extra-budgetary funds (pension) and other special funds have a certain amount of autonomy, separate from the local budgets.

Independent link local finances are local government enterprises. These include municipal, traffic, transport enterprises, gas, electricity and water, as well as housing. Local businesses are engaged in service delivery, provide assistance to private capital in the construction of new facilities. Local businesses operate on the principles of sustainability, in the local budgets reflect only the losses from their business or profits. In some countries, local budget revenues include gross income of local businesses, and cost - the cost of their current activities. Capital expenditures for construction of local businesses, usually financed by loans that are placed by local governments.

Special funds act as a link national finances. The best known form of organization of financial resources on a national (territorial) level are the state and local budgets. However, limited resources and a number of factors determine the feasibility of using both, and other forms - special funds. Increase the number and size of these funds for several reasons. First, the public authorities have additional funds to intervene in economic processes and financial support for entrepreneurship, especially in conditions of instability of the economy. Second, the government gets the funds in to a large extent outside the effective financial control of the legislature, as These funds are generally autonomous from the budget. Third, by diverting part of certain expenses from the budget, extrabudgetary funds reduce its deficit.

Surplus funds may be used to cover the budget deficit through credit operations.

Thus, special government funds - a form of redistribution and use of financial resources attracted by the state to finance its activities. The procedure of formation and use of this section of the financial system is regulated by law. These include the various funds, special accounts and estimates. In other developed countries the number of large special funds ranges from 30 to 80.

Special funds are created in two ways:

• Budget allocation of certain expenses that are especially important;

• the formation of the special fund by special decision of the legislature for specific purpose.

In the financial system, foreign special funds occupy an important place. Be concentrated in the volume of these funds is significant. In France, special funds are approaching the size of the state budget of the country, in Japan, are funded by more than half of government spending in the UK - 1 / 3. To special funds assigned primarily functions such as economic and social. With their help, you can:

• to influence the process of production through financing, subsidies, loans of domestic enterprises;

• to ensure environmental protection measures, financing them by specifically identified sources and fines for environmental pollution;

• provide social services to the public by the payment of allowances, pensions, subsidies and financing of social infrastructure in general;

• provide loans, including foreign partners, including foreign nations.

Sources of the formation of special funds is largely predetermined by the nature and scope of tasks for the implementation of which they are created. On a variety of sources and their size affect the economic and financial situation of the country at any given stage of development.

Consequently, the sources of the special fund has a relatively permanent and temporary. They may be different in the state, differing in the administrative-territorial units.

The main methods of raising funds for education are the special taxes and fees established by the legislature. A significant amount of funds generated from state and local budgets, the resources of which come in the form of grants or certain deductions from income tax. Proceeds of special funds may also make voluntary contributions and borrowings.

The direction of expenditure of funds received extra-budgetary funds, the appointment is due to funds, the specific economic conditions and the content developed and implemented programs. Some of the money goes to the founder's activities, as well as embedded in securities. Special funds can serve investors and financial market participants in connection with the fact that, first, often the use of funds does not coincide with the time of their formation, and, secondly, investment income are additional sources of financing costs of the respective fund.

The management of each Fund is administered by the administrative apparatus, which has certain rights and obligations stipulated by the charter or by law.

Western governments tend to increase the number of funds to get at their disposal large funds. But the lack of financial resources and the complexity of managing force from time to time to unite funds or liquidate some of them.

The financial system of foreign countries important place belongs to the state enterprises. At the present stage of development, although carried out in the 80s. privatization, state ownership in these countries remains strong position in the economy. State-owned enterprises receive numerous orders, providing a comprehensive private enterprise and guaranteed market for a number of products, stimulate the process of capital accumulation by redistributing national income in favor of other parts of the financial system (through lower prices and tariffs on products of state and high prices for the products of private enterprises, consumption state) and investing its own funds in low-profit industries.

You can select multiple reasons for the formation of public enterprises, which often overlap and occur simultaneously.

1.Ekonomicheskie reasons due to the need of state intervention in economic processes. Operation of state-owned enterprises affect the relationship between the different branches of material production, contributes to a change in its structure, stimulates the growth of innovative industries.

The widespread introduction of new technology and scientific advances, automation of manufacturing processes require large financial resources, a highly energy base. In this regard, particular importance is the development within the state industries such as gas, electricity, oil, coal. In addition, a state-owned research centers and experienced company, is redevelopment of monopolistic enterprises which have appeared on the verge of bankruptcy, construction of new enterprises in capital-intensive industries. State-owned enterprises are widely used as a tool of counter-cyclical and anti-inflationary adjustment.

2. The development of the above-mentioned industries, research papers require large initial investment. Private enterprises are reluctant to risk associated with the development of new industries. Therefore, these costs are financed by the state. This is financial reasons.

3.Politicheskie reasons due to the development of internationalization, which led to the participation of state-owned enterprises in the integration processes of production and capital. In modern conditions, state and mixed enterprises created with foreign branches of foreign capital, enter into licensing and other agreements on scientific cooperation, and thus become direct participants in international economic relations. Many state enterprises realize a significant portion of foreign products (this is particularly true for France, which sells abroad 50-60% of the products of a number of public companies). State-owned enterprises in foreign countries differ in their legal position, the control system, the organization of economy and finance, the nature of the relationship with the budget. They can be divided into three main groups: public corporations, mixed enterprises, companies located in the budget financing.

Are essential public corporations, which are large industrial complexes, covering all enterprises in the industry or a substantial part of them. Each corporation is approved by special Act of Parliament, it has the operational and financial autonomy, the right to enter into contractual relationships with other companies.

A distinctive feature of public corporations is their "autonomy", ie their daily production activities located outside of parliamentary control, finances are separate from the state budget. Mixed Company - is the company, part of which belongs to the state capital. They are created by the acquisition of shares in state enterprises or state-building enterprises involving its participation of private capital. The management of such companies like management of joint stock companies.

Businesses located on budgetary financing, part of the departments of relevant ministries or municipalities. All of their economic activity is regulated by the state. Profit wholly or in part goes to the respective budgets, capital investments are funded mainly through budgetary allocations. These companies each year are estimated to be approved simultaneously with the state or local budgets. They are fully exempted from serving on state and local budgets. Finance state-owned enterprises are a set of economic monetary relations associated with the formation and use of funds of funds and savings companies, as well as to control the formation, distribution and use of these funds and savings.

The relationship of public corporations with the budget system is facilitated through the payment of taxes in the state and local budgets, interest for loans and receive grants from central government, mainly to finance capital investments, grants and loans at high interest rates. The relationship of joint ventures with the state budget through the taxes are added in the same way as ordinary corporations. Relations between companies located in government funding to the budget are based on the so-called principle of gross or net. In the first case, the budget includes gross revenues and expenses of the enterprises in the second - reflects only the positive or negative balance. These companies are independent, autonomous budget, and in a state or local budgets, taking into account only the financial results of their activities. As a rule, is now in most countries, the principle of net.

Chapter II. The financial system of the RK