Problems of Ensuring the Balance of Regional Budgets in The Conditions of Sanctions Pressure

Abstract

Having successfully passed the tests of the pandemic, the Russian economy has faced new challenges. Unprecedented sanctions have been imposed on our country by unfriendly States. They affected the Bank of Russia and are related to the management of reserves and assets, as a result of which more than half are blocked. A number of Russian banks have disconnected from the SWIFT payment system and restricted cross-border transfers. Against the background of such a difficult geopolitical situation, the regional economy and the budget system were under serious threat. However, the «pandemic» experience gained allowed the Government of the Russian Federation, the Parliament, and regional management teams not to react slowly to the events taking place and take the necessary steps to contain external sanctions pressure. Priority actions were aimed at stabilizing the situation in financial markets, tax incentives and reducing regulatory restrictions, import support, speeding up budget procedures and the use of funds from state-owned companies, support for SMEs and system-forming enterprises. The rights of the Government of the Russian Federation have been expanded and the opportunity has been given to direct the funds of the NWF for the purchase of Russian government securities and shares of Russian issuers, to identify specific investment projects in the tourism industry. In addition, legislative norms have been adopted that allow regions to respond quickly to changes in the geopolitical situation and the economic situation and reduce the impact of negative factors on the budget system. This article examines the issues of the state of regional budgets in modern conditions, analyzes the state measures taken to preserve the stability of the budget system, and also suggests mechanisms aimed at further strengthening and stabilizing the situation in the regions to ensure the balance of regional budgets.