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The article investigates the theoretical and practical aspects of the main parameters of state and self-government structures, its interaction in the process of formation and development of the state, its separation from society. The authors make a general description of the state, local government, social sphere. Attention is paid to the issues of relations between local self-government and institutions of the state, society, institutions of human and citizen' rights and freedoms. The objective factors of the relationship between the state and self-government principles are considered, including the degree of socio-economic maturity of society, the ratio and arrangement of social groups. An attempt to determine the role of the individual in the implementation of the harmonization of human and citizen rights and freedoms with the interests of the state and society has been made there.

Deterioration of public capital in the US has been reported to be in crisis since the mid 1970s. There is an argument which insists that the deterioration is caused by the shortage of expenditure on the maintenance of public capital. The budget allocation for maintenance is not a technological problem. The purpose of this paper is to analyse the following three issues by describing both local and central government behaviour. First, the optimal conditions for the allocation of maintenance expenditure are examined. Secondly, the impact of the differences in preference of residents for public capital used for amenity and maintenance is examined. Finally, we examine the condition for the case where provision of subsidy from the central government to a local government creates a large loss of efficiency.