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In an article, such concepts as local finance, the value of local self–government, the formation of local finance, a role of formation of local finance of development of the municipality is considered. The practice of formation of local finance and its improvement in the municipality is considered. Authors note that at the moment local self–governments of many municipalities have no enough economic opportunities to influence the execution of the tasks set for them without the aid of publicdoi:10.5281/zenodo.166864 fatcat:2lncdm66kzbdhimwuzoltqaejq