Financial requirements for the local budget architecture

The formation and use of budgets of public-law entities is carried out under the conditions of certain financial requirements and restrictions. They arise as a result of the established basic principles of building a budget system and are projected onto financial plans at all levels. Thus, the principle of reliability provides for a realistic calculation basis for all income and expenditure indicators formed in the budget, as well as sources for covering a negative financial result - a deficit. Its violation inevitably leads to the formation of accounts payable, and ultimately, to an increase in the deficit. The principle of independence secures the rights of a public-law entity to independently implement the budget process, including the search for sources for the formation and strengthening of the financial base, optimization and rationalization of expenses. And the principle of a balanced budget, declared as the correspondence of budget expenditures to the total volume of its income and sources of deficit financing, implies the possibility of using attracted and borrowed resources of the financial and banking system in the event of an emerging or planned deficit of funds. At the same time, modern budget legislation provides for their maximum volumes for regional and local public-law entities. The purpose of the study is to summarize the financial requirements imposed on the architecture of the local budget in modern conditions, as well as to propose some ways to achieve its balance.