The principle of the budgetary system unity amid implementation of regional budget independence: A case study of the Chechen Republic

Abstract

Aim. To identify the ways to improve the observance of the principle of unity in the process of formation of the budgetary system of the Russian Federation (RF) on the basis of the analysis of the revenue part of the regional budget of the Chechen Republic.Objectives. To identify problems related to the observance of the principle of unity in the process of forming the budget system of the Russian Federation; to reveal the problem of the socalled chronic income insufficiency in regional and local budgets; to provide evidence of the effectiveness or inefficiency of the current mechanism of inter-institutional financial relations in Russia on the example of the Chechen Republic.Methodology. In the course of the research, the authors used general scientific methods and a number of special ones, including statistical and economic analysis, economic-mathematical and abstract-logical methods, as well as the method of graphical representation of information.Results. The idea is substantiated that the principle of independence of regional budgets should not contradict the principle of unity of the country’s budget system. It is proposed to develop a budget financing mechanism that takes into account not only the difference in providing the region with financial resources for independent development, but also the opportunity to give the funds allocated from the state budget an investment character.Conclusions. The article defines the directions for improving the mechanism while respecting the principle of unity in the process of forming the budget system of the Russian Federation. The country’s budget system should become one of the main sources of investment in the economy of the country and regions.