Russia is entering a nascent next global economic crisis with a tendency of low economic growth rates and insufficient export demand for raw energy sources. In such conditions, state authorities pose a search for new sources of income for the country as the most important task. One of them may be the development of small and medium-sized enterprises which provide from 50 to 60% of GDP in economically developed countries. Today, Russia has already adopted numerous regulatory documents governing the development and promotion of small business. However, on the municipal level, where small business is actually emerging, there is no incentive for government officials to support it. This is largely due to the basic principles of building a budget system for the distribution of powers between the center, regions, municipalities, as enshrined in the Budget Code of the Russian Federation, and the corresponding financial policy. The purpose of the study is to develop proposals to stimulate the interests of the local administration in the development of small businesses in the current legal field of intergovernmental relations regulated by the Ministry of Finance of the Russian Federation. The study was conducted on the basis of statistics provided by the Office of the Federal Tax Service for the Kursk region and the Finance Committee of the Kursk region. We proved that the main indicator for identifying trends in the development of small business in municipalities may be the dynamics of a single tax levied according to the simplified taxation system. We suggest changes to the laws of the Kursk region to increase the revenue base of budgets of municipalities depending on the dynamics of small business development.