The article is devoted to the study of institutional reasons for economic problems of local selfgovernment in Russia. The results proving the inconsistency between the actual incentives of regional authorities and goals of territorial development have been obtained upon analyzing the execution of consolidated budgets of RF subjects. The article defines the principal trends of formal state institutions’ modernization; the implementation of these directions will raise the interest of RF subjects’ administration in the development of local self-government’s economic base
Keywords
local self-government, state institutions, municipal budgets