Introduction. In the current crisis conditions decline in growth receipt of incomes to local budgets is felt stronger in comparison with the previous year. In relation to this fact it is necessary to mobilise all reserves for local budget extension. Local budgets are one of Russian consolidated budget elements. Nowadays in Russian Federation the role of local government authorities is increasing in economic and cultural construction. They acquired significant rights in the management area of economic, social and cultural construction on a catchment area. For assigned obligations completion the resources are needed, in particular, by way of different inpayment to municipal organisations budgets. Therefore, this research including structural characteristics of Ufa budget analysis, determination of reserves for municipal budget extension increase and extraction of budget outcomes priority directions, is particularly topical. Results of research. Based on economics and statistics methods budget incomes and outcomes of Ufa for the period of 2007–2013 were analysed. The analysis carried out shows that the central problem is the problem of the municipal budget extension, especially in terms of tax and non-tax proceeding. The insufficient social orientation of the municipal budget is concluded. In particular, from 2009, a significant decrease in public health service outcomes was observed, by 15% in average annually. In spite of the fact that Ufa is in the list of cities with high level of environment pollution, outcomes on ecology are insufficient, being an extremely negative factor. Conclusions. In the conclusion, the Ufa budget optimization suggestions were formulated. Disadvantages of change-over to programming method of budgeting were emphasized, a subjectiveness of budget outcomes priority directions was determined. The closed character of information on budget outcomes is also one of the central problems, that makes an estimation of budget outcomes effectiveness more difficult.