VolRC RAS scientific journal (online edition)
RuEn

Journal section "Territorial economy"

Management of Inter-Budgetary Relations in Russia is an Integral Part of Budget Management

Avetisian I.A.

1 (41), 2018

Avetisian I.A. Management of Inter-Budgetary Relations in Russia is an Integral Part of Budget Management. Territorial development issues, 2018, no. 1 (41). DOI: 10.15838/tdi.2018.2.41.3

DOI: 10.15838/tdi.2018.2.41.3

Abstract   |   Authors   |   References
The article is devoted to the study of topical and most complex issues of regulating inter-budgetary relations in modern Russia and determining its place in budget management. Based on revealing the legal and socio-economic nature of inter-budgetary relations in Russia it is shown that their management takes an independent place in the hierarchical system of budget management being an integral part of it at the same time. Based on the study of the historical aspect of regulating the inter-budgetary management system development in Russia the author justifies the necessity of fundamental changes occurring in the system at different historical stages of the existence of contemporary Russia with the purpose of bringing it into line with the objectives of a specific period of the country’s development. It is proved that the main practical role of inter-budgetary relations management is to ensure the balance of income and expenditures of all budgets of Russia’s budget system, which predetermines its important and independent place in the overall system of budget management. In this regard, the article presents the generally accepted scheme of vertical and horizontal management of inter-budgetary relations in Russia with the corresponding characteristics of their essential features and the role in achieving the balance of budgets at all levels of the country’s budget system. Special attention should also be paid to management of inter-budgetary relations in close connection with budgetary federalism since it is an important financial tool for practical implementation of its principles. The explanation of the nature of budget federalism and its different models in the world practice has helped characterize the specific features of the model of Russian budget federalism. The author demonstrates in detail the existing procedure for managing inter-budgetary relations between Russia’s federal budget and the budgets of Russia’s constituent entities (regional budgets); respectively, between the budgets of Russia’s constituent entities and local budgets through relevant legal regulations, mechanisms, methods and techniques, at the same time highlighting the unresolved challenges and problems of socio-economic and legal nature in the above-mentioned subsystems of inter-budgetary relations management in Russia. It is proved that in modern Russia due to specific internal and external reasons, contrary to the principles of budget federalism, there is excessive centralization of inter-budgetary relations in favor of Russia’s federal budget. The regions’ financial dependence on the federal centre is very high. As a result, Russia’s budget system, in particular, its federal budget, operates as a budget of a unitary state, rather than federal. In this regard, it is emphasized that even the most perfect legal regulations, mechanisms and methods of managing inter-budgetary relations in Russia as an integral part of budget management, cannot solve the issue of ensuring the adequacy of financial resources at all levels of Russia’s budget system and the creation of real budget federalism in our country. The author believes that a fundamental principle of rationalization of inter-budget relations and creation of real fiscal federalism in Russia is the sustainable economic development of all country’s territories and increasing their own taxable capacity. This means that Russia will have to go a long way towards creating real fiscal federalism. But this is necessary as the preservation of the integrity of the Russian state largely affects the successful solution of this problem