DECENTRALIZATION OF MUNICIPAL FINANCES AS A WAY TO INCREASE THE SUSTAINABILITY OF MUNICIPALITIES

Financial independence is one of the "pillars" on which local self–government rests. Without adequate funding, it is impossible to fully resolve issues of local importance. In Kyrgyzstan, the issue of financial decentralization has always been in the spotlight, but the view on it has constantly changed. Until the 2000s, the number of local taxes and fees in the arsenal of local government included sixteen items, then this number was reduced to eight. The Tax Code in its modern version contains only one type of local tax – on property (movable and immovable). Although funds from some republican taxes go to local budgets. In 2006, a two-tier budgeting system was introduced with the abolition of the budgets of regions and districts, and standards for the formation of local budgets began to be calculated according to the Government formula. The author of the article has his own opinion, believing that it is necessary to increase the number of local taxes and fees, thereby stimulating interest in their collection, and not depend on the formula and transfers. At least half of the local budget and more should be formed at the expense of local taxes.