Intergovermental Transfers in the Russian Budgetary System

The problem of public finance redistribution among different levels of budgetary system has always been crucial for many countries and Russia is not an exception. The current budgetary system has been shaping there since early 1990s, however, there are still plenty of flaws. One of them is the absence of clear and transparent methodology in allocation several kinds of intergovernmental transfers — subsidies and equalization grants aimed on supporting budgetary balance in regions. For this reason it seems to be opportune to identify key factors, which may have a significant influence on amount of fiscal transfers for regions. Within this research some economic and political factors, such as gross regional product, household income, election results and others will be analysed and compared. After that there would be a forecast on further changes in these variables (factors) for the next five years and in result recommendations for improving allocation mechanisms as well as for optimization budgetary policy in regions will be offered.