In this paper we identify the conditions of formation of the financial base of subjects of Federation, the technique of analysis of the structure, stability of budgets and efficiency of sub-federal budget policy. The purpose of the analysis is the elaboration of the methodical approach to the justification and evaluation of principles and criteria to strengthen fiscal capacities of regions within sub-federal fiscal policy. The study used a system approach, comparative and regression analysis. Performed complex calculations on materials of subjects of RF for 2018 has revealed features of the forming of revenues of regional budgets, as well as to assess the impact of fiscal policy on the federal levels of government on incentives for economic development of the territories. Results of the study can be used in studying the possibilities for the improvement of fiscal policy in the direction of alignment and incentives of sub-national authorities to strengthen their own revenue base. The methodical approach to the study of the influence of sub-federal fiscal policy on territorial development made it possible to characterize the inter-governmental fiscal relations at the sub-national level in terms of overcoming the asymmetry in the budgetary provision of regions, as well as detect the presence of incentives for regions to increase tax and nontax revenues. It is concluded that the improvement of inter-budgetary fiscal relations should include measures to strengthen the own tax capacity of sub-national level. In addition, the measures to prevent the direct relationship between the actual and predictable revenues and expenditure budget and the amount of received grants for leveling the budget supply are necessary.