The problems of formation of an effective system of fiscal federalism in modern Russia are considered. For a number of objective and subjective reasons, inter-budgetary relations between the federal center and the regions are based on an obvious priority in favor of the interests of the federal center. This has an extremely negative effect on the socio-economic development of the country's regions. The article presents an overview of scientific studies devoted to determining the need to use fiscal federalism as a strategic factor ensuring the effective development of the country's regions. The system of fiscal federalism in the USA and Germany, its advantages and disadvantages is analyzed. The author notes that the experience of these countries confirms the need to use fiscal federalism in countries with a large territory and significant differences in the level of economic development between regions. Ensuring the competitiveness of the region and its transition to an innovative development model can become a reality only if the regions, firstly, have the necessary financial resources for this; secondly, if they are independent in making decisions on determining the direction of using these resources. When the system is conserved, when the region is strategically dependent on the opinion of the federal center, it is a dead-end option. The economic situation in the Udmurt Republic is analyzed, which is a typical example of an industrial region in the Urals. In the current century, three programs for the development of the regional economy have been adopted. However, the practical implementation of the programs ran into great difficulties, since Russian regions are unable to ensure the solution of current problems and development for the future due to the lack of the necessary financial resources. In these conditions, the formation of a modern effective system of fiscal federalism should be considered as a problem requiring a mandatory prompt solution. The socio-political situation in the country and the prospects for its development are determined by the state of affairs in the regions. Therefore, the development of fiscal federalism acts as a strategic condition for the development of the national economy as a whole.

Full Text

Published Version
Open DOI Link

Get access to 115M+ research papers

Discover from 40M+ Open access, 2M+ Pre-prints, 9.5M Topics and 32K+ Journals.

Sign Up Now! It's FREE

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call