Assessment of the debt sustainability of a municipality: consequences of entry into force

Vlasova Natalia Viktorovna

In the summer of 2019, the budget legislation introduces norms aimed at establishing a mechanism for assessing the debt sustainability of regional and local budgets. The consequences of assigning a municipality to a group with a certain level of debt stability (high, medium, low) also vary. At the same time, in the context of taking measures to prevent the spread of a new coronavirus infection, these changes had slightly different results than those that were planned. Thus, the restrictions imposed, for example, affected the right of local self-government bodies to provide additional social support measures for certain categories of the population. The impossibility of providing such previously established measures would predictably have a negative impact on the quality of life of the population living in the territory of the respective municipalities. The above raises the question of correlating the validity of the changes made and their relevance in the relevant time period.

Keywords:budget legislation; assessment of the debt sustainability; municipalities; addressing local issues; additional measures of social support and social assistance for certain categories of citizens