Intergovernmental relations in the Russian Federation

In the Russian Federation, interbudgetary relations are activities based on the interrelation of the state authorities of the country, subjects, local self-government, and related to the execution and formation of the corresponding budgets. All expenditure-income schemes that are part of the overall system of the state are interrelated. This relationship is determined by intergovernmental fiscal relations.

There are certain principles on which this interaction is based.

Interbudgetary relations are built on the allocation and fixing of the expenditure part of the budgets at specific levels of the system.

A differentiation is also used (approval on an ongoing basis and distribution in accordance with the time frame) of the regulatory revenue side.

An inalienable condition on which interbudgetary relations are built is the equality of the budgetary rights of the subjects (municipalities).

In the conditions of interaction, the equalization of the level of the expense-income minimum security of the subjects (territorial formations) is applied.

Interbudgetary relations reflect the equality of all budgets of the state when interacting with the federal. In addition, equality of local expenditure-income schemes is ensured in connection with the schemes of subjects.

Based on these principles, certain types of spending systems can be transferred from federal financial plans to entities, and from subjects - to territorial entities. Thus, forms of interbudgetary relations are formed.

The principle of equality of expenditure and income schemes involves the use of one method of calculating the norms of financial costs for the provision of municipal and public services, a single order of payment of regional and federal taxes.

The distribution of tax revenues (according to Article 48 of the Budget Code of the Russian Federation) assumes that the amount of these charges of entities should be at least fifty percent of the total amount of revenues in the consolidated budget.

To ensure the expenditure part of the territorial financial schemes it is necessary to have the appropriate incomes.

The inflow of territorial finance can be regulating and own.

Own revenues are established on an ongoing basis in part or in full for the respective budgets. The consolidation of this provision is carried out by the legislation of the Russian Federation. To their own income include tax collections, defined by regulations, gratuitous transfers and so on. This category constitutes the smallest part of the entire inflow of territorial finances.

Regulatory revenues are transferred to local and regional authorities. Thus, the financial support for the execution of the functions of these bodies is being formed. Regulatory revenues are directed to the social and economic development of the territories.

This category includes regional and federal taxes, as well as other payments, which approved the percentage standards of revenues to the budgets of entities and municipalities for the coming financial year. The norms are also established for a long period (from three years) for various types of such incomes.

The category of regulating financial profit consists of transfers (funds coming from funds, regional and federal, support of regions). Their size is calculated according to the formula and methodology established by the government.

In addition, subsidies, subventions and subsidies are used as regulatory revenues. According to experts, these types of financial income are deprived of incentive qualities. The practice of transferring such funds slows down and does not contribute to the formation of an economic initiative of territorial administrations, reducing their influence on the economic development of the region, and reduces financial control.