The Budget Levelling Policy in the Russian Federation

The purpose of this research is to examine leveling policy as a tremendous part of fiscal policy and to identify its main methods, tools and objectives for the example of the Russian Federation. The reasons for the high dependence of individual regions on the federal center are also considered. Such factors as availability of mineral resources and production, the level of socio-economic development of the region, demographic and geographical factors and the quality of regional finance management are considered. In order to determine the significance of leveling policy a combination of quantitative and qualitative methods is used. The analysis is based on the Rosstat data and on Federal Budgets of the Russian Federation as well an on data gathered from Germany, Canada and US statistical agencies.As a result, there are proposed opportunities to reduce the number of regions receiving federal non-earmarked support. The results of this analysis can be used for a further investigation of the best financial practices for public services, as well as to identify the most "problematic" areas needed of strengthening of Russian fiscal policy.