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Complementarily - Adaptive use tools of intergovernmental relations for the purpose of leveling the socio-economic development of regions

Abstract

Complementarily - Adaptive use tools of intergovernmental relations for the purpose of leveling the socio-economic development of regions

Y.V. Razvadovskaya

Incoming article date: 10.10.2013

The current system of intergovernmental fiscal relations , the trends of its development in Russia , including the alignment process , aimed at smoothing the territorial differentiation of socio- economic development of regions. The main task of any state , regardless of the device is to smooth regional disparities through a reallocation of financial resources. In this case, the stability of intergovernmental fiscal relations between the federal center and the subjects of the federation is largely determined by well-functioning system of fiscal federalism. Currently, the budget process is characterized by serious contradictions that arise during the development phase as well as on the stages of implementation of management decisions. Global experience demonstrates the lack of an optimal model of intergovernmental relations . Vertical alignment is the process of achieving a balance between the commitment of each level of government expenditure with the potential of its revenue sources . The tools include the vertical alignment of the fixing of taxes for a certain level , subventions and subsidies, regulating the distribution of income. The horizontal alignment is aimed at providing a unified standard level of consumption of public services to the residents of different regions of the country. With reference to the Russian economic space horizontal alignment problems are quite complex , since there are strong differences in socio-economic development of the regions due to climatic and historical factors .

Keywords: Complementarily - adaptive tool, budgetary control, fiscal stimulus, active regional policy, economic growth, macroeconomic development