The Distribution of Financial Resources and Powers in Saint Petersburg as a Federal City

Saint Petersburg, having the status of a federal city, has unique characteristics of interaction between the regional and local levels of government, expressed, among other things, in the distribution of financial resources and powers between them. In this regard, the purpose of this final qualifying work is to develop a system of recommendations for improving the system of providing intergovernmental transfers and for the distribution of main income sources and powers in Saint Petersburg. The objectives of this work are related to the study of fiscal federalism, intergovernmental relations, the system of intergovernmental transfers, and federal legislation, to consideration of the economic and administrative features of Saint Petersburg, to analysis of statistical data and legal acts in the areas of distribution of revenue sources and the formation of the system of intergovernmental transfers, and also to formulating relevant recommendations. The work uses such research methods as statistical analysis using the analysis of structural shifts, spatial analysis using the method of spatial autocorrelation in the GeoDa program, modeling based on statistical data, reports and assessments of authorities’ activities, as well as analysis of legal and scientific sources. Based on the analysis carried out in the work, problems are identified related to excessive centralization of management at the regional level of government, expressed in the assignment of main financial resources and powers to state authorities, excessive control over local governments, burdening of their activities, as well as to the imperfection of the existing system of providing intergovernmental transfers. As a result of the study, recommendations are proposed for decentralization, expressed in increasing powers, the volume and stability of financial resources of local government, as well as recommendations for improving the system of providing intergovernmental transfers to local budgets in the form of untied grants, tied grants, and payments. Key words: public finances, intergovernmental transfers, local budgets, local government, federal city, Saint Petersburg.