The local budget subsidy dependence: Identification and classification

Abstract

Subject. This article tends the approaches to identifying the category of subsidized budget in the Russian Federation and classifying the regions by level of their subsidy dependence. Objectives. The article aims to explore approaches to the interpretation of the category of subsidized budget, propose criteria for categorizing the regional budgets as the subsidy dependent ones, offer an original definition of the local budget subsidy dependence, and on this basis, classify the regions of Russia by level of subsidy dependence. Methods. For the study, I used the methods of comparative, logical, and statistical analyses, and grouping. Results. The article proposes an original definition of budget subsidy dependence and a classification of regions by subsidy dependence level. It also highlights the main problems of Russia's heavily subsidized regions. Conclusions and Relevance. The proposed identification and classification of subsidized regional budgets and analysis of their current state helped reveal the increasing financial dependence of regional budgets on Federal center grants. The results of the study can be used to further explore the area of modification of regulation of inter-budgetary relations based on the type of subsidization of Russia's regions.