The issue of subsidization of the financial system of the Russian Federation has been studied by more than one domestic author. Unfortunately, today the majority of regional economies are not able to provide themselves with their own financial resources for the implementation of tasks and goals. Interbudgetary financial flows become a topical solution to this aspect of budget relations. The authors consider the problem of improving the mechanism of inter-budget relations on the example of the Republic of North Ossetia-Alania. The article provides statistical data for the covidual and post-sovidual periods. Highlighting the issue of subsidisation of the subjects of the Russian Federation, the authors analyse the problem of centralisation of budget revenues at both levels – regional and municipal. Concluding that a more sustainable state of the budget can be increased by tax and non-tax revenues, while reducing the share of uncompensated revenues, it is necessary to unlock the economic potential of the region, as well as to strive to achieve economic growth. Separately, the authors point to the importance of financial management as a key factor. Balanced budgets of the subjects and municipalities while restoring financial discipline, a more transparent system of inter-budgetary allocations, a more diversified economic system at the level of the RF subjects are the main tasks, according to the authors, serving as drivers of budgetary improvement.