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The need for financial and administrative self-sufficiency of urban municipal entities

Subject. The article discusses the system of local government in urban districts of the Russian Federation, its distinctions and development impediments.
Objectives. The study determines whether it is reasonable to create internal municipal entities in cities of urban districts from perspectives of their fiscal and administrative self-sufficiency.
Methods. I used general methods of research, such as comparison, analysis, synthesis, analogy and systems approach.
Results. I analyzed financial and organizational conditions for urban districts and internal city districts in the Russian Federation before and after local government reforms. Nowadays, internal districts in cities are found to have ceased their financial and administrative independence, whether they have their own budget or not. Their operations do not improve the overall local government system. Therefore, I suggest setting the mechanism for the bottom-to-top authority assignment, rather than the top-to-bottom one. Thus, internal municipal entities will be allowed to determine powers, allocate funds, delegate them to urban district authorities. Local authorities will show better performance, since people will be directly involved in local decision-making processes and support their initiatives before municipal authorities.
Conclusions and Relevance. The analysis and recommendations will help municipal entities of the Russian Federation make decisions concerning their intentions to become an urban district with internal districts within a city. The findings are useful to outline development lines for local government in Russia.