Municipal Entities Stimulation: The Concept and Essence

The paper draws attention to the lack of a holistic theory of encouraging municipal entities, which makes it difficult to develop an effective incentive policy in relation to them. The paper examines doctrinal approaches to understanding legal stimulation, and expresses the author’s position on this issue. The difficulty of creating a unified theory of legal encouragement is noted due to the presence of incentive norms in legislation with different industry affiliation. Attention is paid to incentive legal relations, which made it possible to consider municipalities as their participants. The paper describes the features of the public-incentive relationship, gives the characteristic of municipalities as a subject of public-incentive legal relations. It is noted that the object of incentive relations with the participation of municipalities is based on public relations aimed to stimulate municipalities, represented by their bodies, and the local community to effective managerial activities. For this purpose, funds are to be allocated through inter-budgetary transfers and grants. The basis for encouraging municipalities is formed by the performance indicators of their activities, expressed in quantitative and qualitative characteristics. The content of the legal structure "municipal entities stimulation" is defined as the activity of authorized entities aimed at establishing conditions and criteria for encouraging municipalities and stimulating them to effective management activities through the use of incentive measures.