Policy Memo Essay
The cities are the centers of intellectual activity, trade, culture, science, productive work, social development and many others. Regarding positive development, the city allows people to evolve socially and economically. But parallel to management of municipal economy with the emphasis on creation of workplaces and prosperity without exhaustion of territories and resources arise a number of other companion problems. Overpopulation, a lack of means for ensuring basic services, shortage of adequate housing and degradation of infrastructure belong to common problems of the cities. The problems facing the cities can be solved on the course of forward development and growth due to more effective use of resources and reduction of level of environmental pollution and scales of poverty. The future which we want for all, assumes existence of the cities with opportunities, access to the main services, adequate power supply, housing, transport and many other. All of these purposes are closely connected with the city budget. Magicster has to develop by the principle of comprehensive balance — between the industry and ecology, safety and comfort, business and the social sphere. In such city there is a constant information exchange of the population and authorities thanks to what urban areas and infrastructure develop taking into account interests of inhabitants. One of key features of development of Magicster consists in necessity of providing an effective information exchange between citizens and city services and providing the fullest information to the city authorities for decision-making. By means of our analytical platform it is possible to process huge arrays of information from different sources. For example, in real time to trace electricity consumption in each of numerous town houses, comparing consumption at different times of days, in week and holidays. Such concept which is named "Manhattan", is created by the SAP company for one of the largest megalopolises in the world — New York: each 5 minutes data from the counters is installed in houses and transferred automatically to uniform system, thus, it gives the chance to analyze dependence of energy consumption on time of day, a day of the week and even weather conditions. The received information gives the chance to municipal services more precisely to count need for the electric power and to plan the resources. “But clever cities will not necessarily be better ones. Rather than becoming paragons of democracy, they could turn into electronic panopticons in which everybody is constantly watched” (The multiplexed metropolis, The Economist). Key element of the concept of "smart city" consists in the maximum knowledge of bodies of a municipal government of the current requirements of the population and business, and also how these requirements change in short-term and long-term prospects. According to Alex Mestre, who is the marketing director of Spain's Abertis Telecom, the main challenge is not technological, but it consists in the political domain (Smedley, The Guardian). The main directions of the budgetary and tax policy for 2014 and planning period 2015 and 2016 are set by priorities of social economic development of the country. Strategic objectives and problems of management of city finance of Magicster are concretized and presented in the program of development of the capital "Magicster – the city there is convenient for life". Results of implementation of this program directly depend on continuity of a course of the budgetary policy (Sassen, 2000). The government of Magicster aimed at providing the long-term balances and stability of city budget of Magicster, and also on increase of efficiency of the budgetary expenses. Realization of program actions during 2014 - 2016 in conditions of application of program and target approach to the solution of tasks social and economic development of the Magicster will provide the priority development of the human capital, modernization of the social sphere and housing municipal services, development transport and engineering infrastructures of the city of Magicster, and also rendering improvement of quality state services.
Main objectives and problems of the budgetary policy for 2014 and planning period 2015 and 2016
Main objectives of the budgetary policy for 2014 and medium-term prospect, as well as in previous years, are:
- ensuring the budgetary stability and stability;
- unconditional implementation of the accepted social obligations;
- providing a high share of the budget of the development directed on implementation of priority projects of development of infrastructure of the city;
- creation of conditions for improvement of quality of rendering the state services;
- improvement of the budgetary relations with bodies of the local self-government of intercity municipalities in Magicster;
- ensuring transparency and openness of the budgetary process.
For ensuring the budgetary stability and stability of the profitable of the part of the budget it is created on the basis of the moderately optimistic forecast of a social and economic development of Magicster. Prime measure of ensuring the budgetary stability is restriction of growth of the expenses of the budget which are not provided with the reliable sources of the income in the long-term period, at unconditional realization of the existing obligations. In this regard budget expenses for 2014 - 2016 are defined at the level of the specified indicators of 2013 that are corrected with consideration of the expected values of macroeconomic indicators for 2014 - 2016, change contingent of recipients of budget funds, volumes of budgetary appropriations on execution of the decisions having single or long character (Florida, 2008). Share of the budget of development, including investment expenses and actions developments, in a total amount of expenses of the budget is provided at the level of 30% that will allow to continue the solution of problems of the city of Magicster and to support objects of the social sphere and municipal economy in technically working order. The necessity of ensuring of the budgetary stability dictates conservative policy in the sphere of management of a public debt of the city. Unconditional priorities of debt policy are minimization of the state loans according to requirements of city and environment of stock market, and also reduction budget deficit. Debt load of city budget of Magicster remains on safe level in the limits allowing to carry out accepted obligations in due time (Sassen, 2000). In 2014 - 2016 for unconditional performance of the accepted social obligations it is planned to keep in full the social payments established by the legislation of Magicster, privileges and the guarantees provided to citizens. Along with carrying out policy social justice and increase of efficiency of the budgetary expenses, the government of Magicster will create conditions for increase of addressing of measures of social support and exception of the leveling principle in providing financial aid. In 2014 - 2016 implementation of actions will be continued, the separate categories directed on finishing the average level of compensation the workers rendering the state and municipal services and carrying out work in education, sciences, health care, social service and culture. For improvement of quality of the state services will be actions for improvement of a network of the state are continued city institutions of Magicster and lists of the services rendered by them. Thus the received results of monitoring of implementation of the specified actions will allow simplifying further stages of improvement of network considerably public institutions of the city of Magicster (O'Flaherty, 2005). According to the resolution of the government of Magicster, since 2014 state tasks for public institutions will be established according to the departmental the lists of the state services (works) created by a set services from industry (basic) lists of the state services that will allow to provide higher level of transparency of an expenditure of means the budget as opportunity differently is excluded to estimate identical in fact services (work) and also to separate free for the service population from rendered on a paid basis. The saved-up practical experience will allow showing higher requirements at control of performance of the established state tasks. For further improvement of approaches to definition standards for calculation of volume of a subsidy for performance of the state tasks it is planned to develop rules of transition from individual to uniform (group) standards and the correcting coefficients financial security of the state task that will create conditions for developments of the competition and improvement of quality of the rendered services to the population. In 2014 - 2016 it is necessary to improve information support of reform of public institutions of the city and increase of transparency of their activity. The budgetary policy in the sphere of the budgetary relations with bodies local government of intercity municipalities in the city in 2014 - 2016 it is directed on the solution of the following tasks: ensuring balance of budgets intercity municipalities, including by granting the budgetary transfers to local budgets, and also stimulation of accumulation of profitable base of local budgets; financial security of the delegated state powers and joint financing of powers of intercity municipalities. For increase of the budgetary security of local budgets it is necessary to differentiate powers between public authorities of the city and local governments, proceeding from economic feasibility of their implementation by public authorities of the city of Moscow, and also powers which public authorities of the city of Moscow have the right to delegate on municipal level. The budgetary policy in the sphere of the budgetary relations will promote an increase of financial independence, providing a sustainable development of intercity municipalities, and, respectively, to a social and economic development of the city of Magicster, to improvement of living conditions of the population. In order to ensure transparency and openness of the budgetary process it is necessary to continue development of system of the centralized portals containing information on activity of executive authorities of the city. Work on improvement, filling and building will be continued functionality of the Open Budget portal which is directed on informing citizens on the course of the budgetary process in the city, increase of transparency of formation and expenditure of budgetary funds, that increases the responsibility of executive authorities of the city at decision-making in the sphere of the budgetary policy. These resources provide access for residents to the systematized actual information on planning and realization budgetary policy, and also participation in updating of plans and programs development of the city by means of the mechanism of "feedback".
Main objectives and problems of a tax policy for 2014 and planning period of 2015 and 2016 years
In previous years in Magicster was laid the foundation of the effective tax system. The main objective of a tax policy in 2014 - 2016 consists in further improvement of the tax system that providing the budgetary stability in the medium-term and long term, definiteness of conditions of conducting economic activity, and also realization of the stimulating potential of tax privileges and rates of taxes. The main directions of a tax policy will become:
- Optimization of system of tax incentives on a basis of results of annually carried out monitoring of efficiency of the tax privileges and rates of the taxes established by legal acts of Magicster. The purpose of system of tax incentives in Magicster is updating of productions and technologies, increase in outputs, release of competitive production and creation of new workplaces. One of tools of tax incentives consists in realization of the principle of "tax privileges in exchange for investments". This principle is already realized for the organizations which are carrying out production of cars on territories of Magicster. Thus, since 2013 on territories of the city work the provisions establishing the lowered rates on income tax and privileges on the property tax for the organizations which are carrying out production of cars in the territory of the city, after documentary confirmation of volume of the capital investments in the established sizes.
- Carrying out of work on improvement of patent system of the taxation and its efficiency directed on increase and demands in the enterprise environment. Actions for improvement of patent system of the taxation are carried out on the basis of results of studying of practice of application patent system of the taxation and taking into account offers on increase efficiency and the availability of this system of the taxation arriving from individual entrepreneurs, executive authorities of Magicster.
Main approaches to formation of expenses
While forming expenses of city budget for 2014 - 2016 it is necessary to take into account the directions of their use to main objectives and problems of a social and economic development of Magicster. Moreover, it is vital to consider: volumes of budgetary appropriations on execution of the operating account obligations; an assessment of volumes of budgetary appropriations on execution of the accepted account obligations; account obligations of limited validity period. The main approaches used when forming volumes budgetary appropriations of city budget for 2014 - 2016:
- volumes of expenses on execution of single actions are excluded;
- the contingent of recipients of budget funds of is specified;
- change of tariffs for housing-and-municipal services is considered for population;
- expenses on payment accepted and unpaid in 2012 are excluded the budgetary obligations, allocated in 2013 at the expense of the remains budgetary allocations, unused in 2012;
- budgetary appropriations on realization separate are considered again the accepted obligations (Jacobs, 1985).
Structure of expenses
In 2011 there were accepted state programs of Magicster, directed on creation of comfortable conditions for residence in the capital, which realization began in 2012. In two years it was succeeded to reach much from what was planned in specified programs. Realization of actions of state programs of the city is carried out within activities of the Government of Magicster, defined priorities of a development of the city, based on experience, the general plans and ideology of modernization of the city of Magicster. For improvement of a program and target method of planning and budget performances of the city of Magicster on the basis of the analysis of realization state programs of the city of Magicster in 2012 - 2013 the Government should make a decision on improvement of structure of the state programs of the city. All in all, development of the cities and territories is very perspective direction in the world. Successful work in this direction increases image of the territory, promotes growth of economic activity, allows increasing investment appeal of the city or region and in particular – to raise the cost of the earth and to order commercial building. Work within the uniform program improves quality of accommodation and work in the territory by development of infrastructure and harmonious development of various sectors of commercial real estate. Magicster is a complete organism; therefore the approach to its development should be complex. Unfortunately, recently there was a negative tendency of one-sided understanding of a development of the city from the point of view of number of the square meters of inhabited and commercial real estate put into operation. Thus the damage to the recreational capacity of Magicster is often caused, under building sites in landscape and recreational zones that cause concern and fair indignation of citizens.