The aim of this article is to summarize some financial management regulations which were developed in the process of implementing local self-government reforms in the RF financial and economic spheres. The author analyzes municipal budgets before reforms occurred and then during the implementation of those reforms. Changes regulations that brought the theory and methodology of the management of municipal finance served to eliminate the imbalance between announced objectives and obtained results in the final transition period of reform. The article concludes with suggested innovations that could improve the performance of local self-government budgetary processes and so benefit the RF population.