THE NEED AND THE WAYS OF IMPROVING OF THE RUSSIAN MODEL OF FISCAL FEDERALISM

This article is reviewing the theoretical basis of budget federalism, its basic elements. Analysis of scientific approaches regarding clarification of the concept of “fiscal federalism” has been provided, and the author understanding of the concept has been justified. In order to improve the Russian model of fiscal federalism the introduction of fiscal equalization has been justified, which is closely connected with the economic, political and legal aspects. In the article the author has described the stages of fiscal equalization. The key to any model of budget federalism are at least four objects of allocation: distribution of revenues; separation of costs; distribution of authorities along with expenditures and revenues; and alignment of fiscal sustainability.

federalism, fiscal federalism, Russian model of fiscal federalism, inter-budgetary relations, fiscal equalization, financial support, subsidies, leveling of budgetary provision, budget revenues, budget expenditures