A study of the financial potential of the municipality of the Arctic zone: the case of Zhigansky district of the Republic of Sakha (Yakutia))

Abstract

Municipalities of the Arctic zone are unique territories, the development of which requires special attention and provision of financial resources. Prospects for socio-economic development and the financial potential of the territory are determined by both the federal, regional and local budgets, and the level of income of economic entities and households. However, at the municipal level, it is the budget that provides the basis for ensuring sustainable socio-economic development, which is especially characteristic of the North and the Arctic. The aim of this work is to study the sources of formation of the financial potential of a municipal district belonging to the Arctic zone. In the course of the work, statistical and analytical materials, as well as budget reporting of the municipality, were studied, an analysis of the strengths and weaknesses of the district economy was performed, the degree of balance and independence of the local budget was determined. According to the results of the study, it was revealed that if a municipal district does not have a developed infrastructure and industrial potential, then it does not have a full-fledged alternative to budget financing. Despite the fact that at the present stage, municipalities have new opportunities to attract financial resources, not all are ready to use them, so the problem of providing territorial development with the necessary resources remains relevant. Studying the financial position of municipalities contributes to an objective assessment of the budget strategy implemented by local governments, taking into account its impact on solving the tasks set, so research must be continued.