3.  Definition of the rationability of the management activity of municipal

Implementation of municipal consisting of the provision of services to the local people that is the main function connected to finance case of it. The municipal fi- nance is the motive source of the municipal; inbeing or weak appear of such source are the severe factors affecting the activity of municipal. The municipal finance is the wide conception of all economic sources and activity of the municipal is included herein.

Form of the municipal finance and their use base to the definitive principles. These principles: consist of principles as self-management, independence, clarity and coordination of the local interest by the interest of the republic. The self-ma- nagement principles arose out main point of the municipal. By issuing the right of the free use finance resources, the legislation implements the significant maneuver possibility for them. At the same time, the self-management principle obliges the municipal management and local inhabitants to make more responsible decision in connection with the local finance. Non-rational work could bring deteriorate of their life and problems of their location will be unsolved.

The rationality of the management activity of municipal existed on account of the following:

 Form mutual profitable horizontal (market), vertical (market and non-market), internal and external relation giving possibility of the rational use of the eco-

nomical, social, cultural potential, at the same time all complex of the local resources of both united village and urban residential systems and separate residential locations (initially the large cities) forming the territorial base of municipal;

 Stir up the ownership activity in the small business field of citizens in the mu- nicipal territory;

 Provide of the rational activity of companies participating on the solution of the local problems by the help of the municipal;

 Realization of the investment possibilities of municipal and strengthening the investment attraction;

 Liquidation of inexperience and dissipation;

 Possess the information on the local tax potential and the using them for in- terest and possibilities of citizens;

 Rational use of municipals from resources, its resources and state profits;

 Achieve of the real preference in the field of the form of markets as local ca- pital, labor, service and property;

 Creation of inter municipal unities for liquidation of negative effects of the neighbor municipal and solution of the socio-economic problems and development of municipal economy and infrastructure on the base of it;

Being the independent institution of the municipal right, bases of the local ma- nagement economic finance is the whole of the legal norms regulating the public re- lation in relation with the use of the local finance in connection with the interest of the people of the municipal organization and the local budget, at the same time cre- ation and the use of the municipal property in Azerbaijan.

The followings form the basis of the local management finance system [5, 11, 13]:

1. Municipal property;
2. The local budget and other finance resources of the local management;
3. The property issued to the use of the bodies of the local management being under the state property and other property implied in the law serving the re- payment of the

The analysis of the experiment of the form of the municipal system show that, the municipal system formed in Azerbaijan has been created according to the world standard and improved according to the socio-economic realization in perspective.