Cheremnaya Tatyana

The article addresses the matters related to development of municipalities as an essential factor for efficient implementation of Russian social and economic policy under sanctions. The point to be emphasized is that tendencies of territorial concentration of the economy in different regions, taking into account their competitive advantages supported by the regional disparity in economic development, are typical both for Russia and other states. Besides, the institutional framework as a basis of the development of municipalities is not efficient. All quantitative information given demonstrates the significant financial shortage in municipalities' budgets. The author has developed recommendations on how to solve problems caused by imperfection of the mechanism for the development of municipalities.