Decentralization and Tax Federalism: Ways to Develop Local Self-Governance

Abstract

This article discusses the features of implementing tax federalism in a unitary state. The article analyzes the implementation of the fourth level of the budget in the Republic of Kazakhstan, as well as the experience of tax independence of municipalities in the European Union. The article analyzes the weaknesses of the current model of financing local self-government in the Republic of Kazakhstan and the state of self-government in General. It is assumed that the system used for financing the local community does not fully use the economic and investment potential of the territories. It is proposed to introduce elements of an independent fiscal policy at the local government level in the Republic of Kazakhstan to increase the investment attractiveness and self-sufficiency of the fourth-level budgets.