Competitive advantages of municipal districts via utilization of internal resource

This article concerns concept of competition between municipalities, in which competitive advantage, competitive activity and competitive relations are defined. Internal resources of a municipality are estimated within theory of competition. Most important amongst functions of competition between municipalities are described. Main competitive advantages of municipality and connection to its social development are researched. Typical state of municipal finance in Nizhegorodskaya oblast’ is analyzed, use of internal resources towards achieving additional competitive advantage are estimated. Regularities of income distribution and expenses paid by municipality for different population are discovered. Subset of municipalities is selected from all municipalities of Nizhegorodskaya oblast’. Trend of relationship between municipal earnings and spending is discovered. A set of proposals on modification of tax system, aimed at reduction of dotation as an instrument of forming possibilities of increasing municipal competitiveness is reviewed. Practices, utilizing internal reserves for enhancing quality of open auctions are proposed. Practice of outsourcing social services via open auctions under fiscal stress is explored. Estimation of visible budget economy and contract break risks from the competitive advantage point of view, are carried out, regularities of contract execution (or failure thereof) are discovered.