Each country has areas with different levels of development - both less and more developed. In order to ensure their uniformity, different types of interbudgetary transfers are used.

In federal countries, which include Russia, effective compensation for the uneven development of regions is ensured through a management system that includes not only central and local authorities, but also intermediate levels of management that exercise powers within specific subjects of the federation.

Thus, interbudgetary transfers are an effective tool for the redistribution of financial resources between all regions of the state to ensure the uniform development of its territories.

Functions of interbudgetary transfers

Interbudgetary transfers come in several types.

But they are all used to achieve the following goals:

• to eliminate imbalances between regions of the country and eliminate social tensions associated with temporary financial downturns;
• to reimburse the budgets of regions that are less developed, and to compensate for funds aimed at ensuring the implementation of tasks of national importance;
• to eliminate the shortcomings of the taxation system.

It can be argued that interbudgetary transfers are the most important part of the budget system, since every year higher authorities have a need to approve contributions to lower budgets to balance their income and expenses.

Forms of interbudgetary transfers

The procedure for distributing financial resources between regions and the main types of transfers are enshrined in the Budget Code of the Russian Federation. According to this document, the main forms of transfers are subsidies, subsidies, subventions and other interbudgetary transfers.

Subsidies

They are provided to territorial units (subjects of the Russian Federation) on a free basis to compensate for the expenses of local funds, or in other words, to co-finance cost obligations to perform tasks determined by the legislation of the Russian Federation and its constituent entities. For example, subsidies can be issued for the development of social infrastructure in regions.

Subsidies can be allocated from the Federal Fund for Co-financing Expenses or from the reserve funds of the Russian government.

Subsidies

They are provided free of charge (without requiring return), and their purpose is not determined in advance.

Subsidies received by a constituent entity of the Russian Federation can be used by it at its own discretion.

Subsidies are allocated from the Federal Financial Support Fund, which is formed on the basis of the lowest level of provision of financial resources to the regions of the Russian Federation. The amount of allocated subsidies is calculated and approved separately for each financial year. These funds make it possible to reduce disproportions in the development of Russian regions.

Subventions

They are provided to the budgets of the constituent entities of the Russian Federation to replenish expenses that are associated with the performance by municipalities of the functions of the central apparatus. Allocated from the Federal Compensation Fund. Distribution of funds from this fund is carried out on the basis of the requirements of regulatory legal acts.

Subventions, like subsidies and subsidies, are provided free of charge.

At the same time, subventions and subsidies are targeted in nature and differ only in the amount of funding (subventions compensate for targeted expenses, and subsidies only compensate for some of them).

Other interbudgetary transfers

Other interbudgetary transfers include a special group of financial resources that appeared in the new Budget Code of the Russian Federation (previously, this form of redistribution of budget funds was not provided for by law). Other interbudgetary transfers are gratuitous and irrevocable. These include, for example, transfers to various closed administrative-territorial units.

All of the above types of transfers can be allocated from the federal budget, local budgets, budgets of constituent entities of the Russian Federation, as well as from extra-budgetary funds (for example, from the Compulsory Medical Insurance Fund).

Transfers from the federal budget

Transfers from the federal budget can be provided in the following forms:

• in the form of subsidies provided to equalize the budget supply of higher-level territorial units (subjects of the Russian Federation);
• in the form of subsidies provided to the budgets of constituent entities of the Russian Federation;
• in the form of subventions provided to the budgets of constituent entities of the Russian Federation;
• in the form of other interbudgetary transfers that are sent to the budgets of constituent entities of the Russian Federation;
• in the form of interbudgetary transfers, which are transferred to the budgets of extra-budgetary public funds.

Transfers from the budgets of the constituent entities of the Russian Federation

Interbudgetary transfers, which are transferred from the budgets of constituent entities of the Russian Federation, can be expressed in certain forms.

Interbudgetary transfers can be expressed:

• in the form of subsidies allocated to equalize the provision of budgets of settlements and subsidies to equalize the provision of budgets of districts or districts;
• in the form of subsidies provided to local budgets;
• in the form of subventions sent to local budgets and budgets of joint-stock companies included in the regions (or territories) to exercise the powers of state authorities of the constituent entities of the Russian Federation;
• in the form of subsidies sent to the federal budget from the budgets of the constituent entities of Russia;
• in the form of other interbudgetary transfers that are provided to various budgets of the financial system of the Russian Federation.

Transfers from local budgets and extra-budgetary funds

Transfers from the budgets of local authorities are provided in the following forms:

• in the form of subsidies transferred from the budgets of municipal districts, which are provided to equalize the provision of budgets of settlements;
• in the form of subsidies transferred from the budgets of settlements to the budgets of municipal districts to resolve issues of local significance of an intermunicipal nature;
• in the form of subsidies transferred to the budgets of constituent entities of the Russian Federation for the formation of regional funds for financial support of settlements and municipal areas;
• in the form of other interbudgetary transfers.

Interbudgetary transfers from the Compulsory Medical Insurance Fund are provided in the following forms:

• in the form of subventions transferred to the budgets of territorial compulsory medical insurance funds;
• in the form of other transfers to the budgets of various territorial compulsory medical insurance funds.

Terms of service

The legislation of the Russian Federation defines the procedure for allocating interbudgetary transfers. In particular, the conditions for the provision of each type of transfer are prescribed in the Budget Code of the Russian Federation. These conditions set a number of restrictions.

The main conditions are the following:

• an entity cannot assume new cost obligations if 20% of its budget comes from transfers;
• in case of receiving additional financial resources, the recipient region must carefully observe financial discipline;
• The Accounts Chamber of Russia and the Federal Budget Supervision Service may at any time audit the entity that received the transfers;
• transfers from the budgets of territorial units of the Russian Federation are provided exclusively if local authorities comply with the legislation of the Russian Federation;
• when providing transfers from the budgets of constituent entities of the Russian Federation, potential recipients must have no overdue debts;
• The legislation of the constituent entities of the Russian Federation may establish additional conditions for the provision and receipt of transfers.

BC RF intergovernmental transfers - funds provided by one budget of the budgetary system of the Russian Federation to another budget of the budgetary system of the Russian Federation.

Forms of interbudgetary transfers provided from the federal budget to the budgets of the budget system of the Russian Federation:

1. Subsidies- interbudgetary transfers provided on a gratuitous and irrevocable basis without establishing directions and (or) conditions for their use (aimed at equalizing the budgetary security of the constituent entities of the Russian Federation).
2. Subsidies budgets of the constituent entities of the Russian Federation from the federal budget - interbudgetary transfers provided to the budgets of the constituent entities of the Russian Federation for the purpose of co-financing expenditure obligations arising in the exercise of powers of government bodies of the constituent entities of the Russian Federation on subjects of jurisdiction of the constituent entities of the Russian Federation and subjects of joint jurisdiction of the Russian Federation and constituent entities of the Russian Federation, and expenditure obligations to fulfill the powers of local governments on issues of local importance.
3. Subventions budgets of the constituent entities of the Russian Federation from the federal budget - interbudgetary transfers provided to the budgets of the constituent entities of the Russian Federation for the purpose of financial support for the expenditure obligations of the constituent entities of the Russian Federation and (or) municipalities arising in the exercise of powers of the Russian Federation transferred for implementation to state authorities of the constituent entities Russian Federation and (or) local governments in the prescribed manner.
4. Interbudgetary transfers to the budgets of state extra-budgetary funds.
5. Other interbudgetary transfers to the budgets of constituent entities of the Russian Federation.

Based on Ch. 16 we can highlight the following intergovernmental transfers:

Important! Please keep in mind that:

• Each case is unique and individual.
• A thorough study of the issue does not always guarantee a positive outcome. It depends on many factors.

To get the most detailed advice on your issue, you just need to choose any of the options offered:

1. from the federal budget;
2. from the budgets of the constituent entities of the Russian Federation;
3. from local budgets;
4. from extra-budgetary funds (in particular, the Federal Compulsory Health Insurance Fund).

Forms of interbudgetary transfers provided from the budgets of constituent entities of the Russian Federation

Interbudgetary transfers from the budgets of the constituent entities of the Russian Federation to the budgets of the budget system of the Russian Federation are provided in the form of:

• subsidies to equalize the budgetary provision of settlements and subsidies to equalize the budgetary provision of municipal districts (urban districts);
• subsidies to local budgets;
• subventions to local budgets and subventions to the budgets of autonomous okrugs that are part of the territories, regions, for the implementation of the powers of state authorities of the constituent entities of the Russian Federation, transferred on the basis of agreements between the state authorities of the autonomous region and, accordingly, the state authorities of the territory or region, concluded in accordance with the law Russian Federation;
• subsidies to the federal budget from the budgets of the constituent entities of the Russian Federation;
• other interbudgetary transfers to the budgets of the budget system of the Russian Federation.

The forms, procedure and conditions for the provision of interbudgetary transfers to the budgets of intra-city municipalities from the budgets of the constituent entities of the Russian Federation - the federal cities of Moscow and St. Petersburg are established by the laws of these constituent entities of the Russian Federation.

Forms of interbudgetary transfers provided from local budgets

Interbudgetary transfers from local budgets are provided in the form of:

• subsidies from the budgets of municipal districts to equalize the budgetary provision of settlements;
• subsidies transferred from the budgets of settlements to the budgets of municipal districts to resolve issues of local importance of an intermunicipal nature;
• subsidies transferred to the budgets of the constituent entities of the Russian Federation for the formation of regional funds for financial support of settlements and regional funds for financial support of municipal districts (urban districts);
• other interbudgetary transfers.

Forms of interbudgetary transfers provided from the MHIF budget

Interbudgetary transfers from the budget of the Federal Compulsory Health Insurance Fund are provided in the form of:

• subventions to the budgets of territorial compulsory health insurance funds;
• other interbudgetary transfers to the budgets of territorial compulsory health insurance funds.

Basic conditions for providing interbudgetary transfers

Interbudgetary transfers are provided subject to compliance by the relevant government bodies with the budget legislation of the Russian Federation and the legislation of the Russian Federation on taxes and fees.

The terms of provision are reflected in more detail in Art. 130, 136, 142 BC RF.

Interbudgetary relations- these are financial relations between federal authorities, authorities of the constituent entities of the Federation and municipalities on issues of regulation of budgetary legal relations, organization and implementation.

The presence of inter-budgetary relations is determined by the unequal economic development of specific territories. Some of them are rich, others have an important strategic position that determines their importance in the state. Natural resources belong to all citizens. This predetermines the need for redistribution in the interests of the state as a whole, which these resources bring.

In addition, industry has historically grown faster in some regions than in others. In the conditions of the economic crisis of 1992-1998, accompanied by a drop in production by almost 50%, the uneven development of specific regions increased significantly.

Financial aid

• provide budget loans in an amount exceeding 3% of its budget expenditures;
• provide government guarantees in an amount exceeding 5% of its budget expenditures.

Amount of financial assistance to a subject of the Federation is determined on the basis of standards of financial costs for the provision of public services.

These standards must be developed taking into account state social standards, i.e., the volume of services guaranteed by the state.

• expenses transferred from budgets of other levels;
• expenses for federal target programs;
• capital expenditures.

Subjects of the Federation can attract targeted budget loans to finance cash gaps caused by the seasonal nature of income receipts for a period of up to six months on reimbursable and gratuitous terms.

The Russian Federation and the Russian Federation have the right to audit the budget of a constituent entity of the Russian Federation that is a recipient of financial assistance from the federal budget.

If a subject of the Federation receives financial assistance in the amount of more than 50% of the expenditures of its consolidated budget, then an audit of its budget is mandatory.

Financial assistance is provided to the budgets of municipalities from the budgets of the constituent entities of the Federation.

• allocations to equalize the level of minimum budgetary provision;
• subventions to finance targeted expenses;
• budget loans to cover temporary cash gaps that arise in the execution of local budgets.

The audit authorities of the subject of the Federation that provides financial assistance have the right to audit the execution of the budget of the municipal entity that is the recipient of this assistance.

The law on the federal budget may provide for financial assistance not only to the constituent entities of the Federation, but also to the budgets of municipal entities.

Typically, such assistance is provided to finance targeted expenses provided for by federal programs or laws. Federal authorities have the right to audit the expenditure of funds received by municipal budgets from the federal budget.

Interbudgetary transfers

To increase the effectiveness of solving current problems of territorial budgets, interbudgetary transfers play an important role.

Interbudgetary transfers- these are funds from one budget of the Russian Federation transferred to another budget of the budget system of the Russian Federation.

Interbudgetary transfers are carried out through the Federal Fund for Financial Support of the Subjects of the Russian Federation, the Regional Development Fund, the Fund for Reforming Regional and Municipal Finance and the Compensation Fund.

Interbudgetary transfers currently existing in Russia can be divided into the following groups:

• non-targeted (block) subsidies to equalize budgetary security;
• targeted transfers;
• compensation payments.

• Budget loan— a form of financing budget expenditures, which provides for the provision of funds to legal entities or other budgets on a repayable and reimbursable basis;
• Subsidy- these are budget funds provided to the budget of another level of the budget system of the Russian Federation on a free and irrevocable basis. Subsidies are provided from the Federal Fund for Financial Support of Subjects of the Russian Federation. They are provided subject to compliance by state authorities of the constituent entities of the Russian Federation and local government bodies with the budgetary legislation of the Russian Federation and the legislation of the Russian Federation on taxes and fees;
• Subvention- These are budget funds provided to the budget of another level of the budget system.

The intended purpose and composition of interbudgetary transfers are formed on the basis of federal budget expenditures, taking into account changes in budget and tax legislation.

Interbudgetary transfers from the federal budget to the budgets of the budget system of the Russian Federation are provided in the form of:

• subsidies to equalize the budgetary security of the constituent entities of the Russian Federation; subsidies to the budgets of constituent entities of the Russian Federation;
• subventions to the budgets of the constituent entities of the Russian Federation;
• other interbudgetary transfers to the budgets of constituent entities of the Russian Federation;
• interbudgetary transfers to the budgets of state extra-budgetary funds.

The variety of types and types of transfers is due to their purpose in the practice of interbudgetary regulation. Thus, in relations between the central (federal) government and state or municipal governments, transfers usually perform the following functions:

• equalizing the budgetary provision of territories and ensuring uniform access to a guaranteed set of public services throughout the territory;
• compensation to lower budgets for the costs of financing events of national importance, the cost of which exceeds the revenue capabilities of these budgets;
• stimulating in the regions the provision of expanded social benefits to the population in volumes exceeding the level guaranteed by the state, in order to improve their standard of living and social security;
• encouraging the implementation of economic, social and political reforms by lower authorities on their territory;
• reducing social tension in the region, stimulating economic growth.

Interbudgetary transfers are one of the methods of distributing funds between budgets, along with the interest method.

The importance of interbudgetary transfers in Russia is due to the significant concentration of budget revenues at the federal level, as well as the uneven economic development of the constituent entities of the Russian Federation and municipalities.

In accordance with Art. 6 BC RF intergovernmental transfers- these are funds provided by one budget of the budget system of the Russian Federation to another budget of the budget system of the Russian Federation.

Currently, interbudgetary transfers are characterized by gratuitousness and irrevocability of their provision.

The fundamentals of legal regulation of interbudgetary transfers are defined in Chapter. 16 BC RF.

The main forms of interbudgetary transfers are grants, subsidies and subventions.

Subsidy is an interbudgetary transfer provided on a gratuitous and irrevocable basis without establishing directions and (or) conditions for their use.

Subsidy is an interbudgetary transfer provided on a gratuitous and irrevocable basis in order to co-finance the fulfillment of expenditure obligations arising in the exercise of powers falling within the competence of the public legal entity to which the subsidy is provided.

Grants and subsidies are financial assistance to the corresponding budget. At the same time, subsidies are funds provided without specifying the purpose of their use, and subsidies are provided for specific purposes.

Subvention is an interbudgetary transfer provided on a gratuitous and irrevocable basis for the purpose of financially securing expenditure obligations arising when the public legal entity receiving the subvention fulfills the powers of the public legal entity providing the subvention.

In fact, subventions are used to compensate for additional costs that arise for public legal entities in connection with the delegation of powers from one level of the budget system to another.

The Budget Code of the Russian Federation establishes the forms of interbudgetary transfers that can be transferred from one or another level of the budget system (Articles 129, 135, 142 of the Budget Code of the Russian Federation), and also determines the conditions for the provision of interbudgetary transfers. The general condition is compliance by receiving entities with budget and tax legislation. The remaining conditions depend on the size of the transfers received and consist in certain restrictions for the receiving entity of independence in the execution of its budget (Articles 130, 136 of the Budget Code of the Russian Federation). Failure to comply with the conditions for the provision of interbudgetary transfers entails the suspension or reduction of their provision (this mainly concerns grants and subsidies).

Despite the fact that the Budget Code of the Russian Federation determines the specifics of providing interbudgetary transfers in relation to each level of the budget system, certain common features that are characteristic of all interbudgetary transfers can be identified.

1. As a general rule, subsidies are provided to equalize the budgetary security of the lower budget. In this case, they constitute a fund for financial support of a lower public legal entity.

The Russian Federation provides subsidies to the constituent entities of the Russian Federation. Subjects of the Russian Federation provide subsidies to both municipal districts (urban districts) and urban and rural settlements. Municipal districts provide subsidies to urban and rural settlements.

The total amount of subsidies and standards for their distribution between budgets at the federal level are determined by the methodology approved by the Government of the Russian Federation. Subjects of the Russian Federation adopt their own laws on interbudgetary relations in the subject of the Federation. Municipal districts also adopt regulations of representative bodies regulating interbudgetary relations.

The specific amount of subsidies is determined in the law (decision) on the budget.

A feature of subsidies provided by constituent entities of the Russian Federation to municipalities is the possibility of replacing them with additional deductions from personal income tax.

Budget legislation provides for the possibility of allocating certain special types of subsidies. In relation to the federal budget, it is possible to allocate subsidies that reflect individual factors and conditions taken into account when determining the level of estimated budgetary provision of the constituent entities of the Russian Federation. The volume of these subsidies cannot exceed 10% of the volume of subsidies to equalize the budgetary security of the constituent entities of the Russian Federation (clause 7 of Article 131 of the Budget Code of the Russian Federation).

Subjects of the Russian Federation can provide subsidies that are not related to equalizing the budgetary provision of lower budgets (Article 139.1 of the Budget Code of the Russian Federation).

2. Subsidies are allocated to co-finance budget expenses.

The Budget Code of the Russian Federation allocates subsidies transferred to the budgets of lower public legal entities and subsidies transferred to the budgets of higher public legal entities.

The totality of subsidies transferred to the budgets of lower-level entities constitutes the corresponding fund for co-financing expenses. Such subsidies are provided from the federal budget to the budgets of the constituent entities of the Russian Federation, as well as from regional budgets to the budgets of municipal districts (urban districts) and to the budgets of urban and rural settlements.

The goals and conditions for the provision and expenditure of subsidies, the criteria for selecting recipients of subsidies and their distribution among them are established by regulations of legislative (representative) and executive bodies.

The specific distribution of subsidies is established by laws (decision) on the budget and (or) regulatory legal acts of executive bodies adopted in accordance with them.

Subsidies transferred to the budgets of higher public legal entities may be provided as part of regional and local budgets.

Subsidies to the federal budget from the regional budget are provided for the purpose of co-financing the fulfillment of expenditure obligations of the Russian Federation. The goals and conditions for the provision and expenditure of such subsidies are established by agreements between the federal executive body and the highest executive body of state power of the corresponding subject of the Russian Federation (Article 138.1 of the Budget Code of the Russian Federation).

In relation to municipalities, two types of subsidies are provided for regional budgets:

• a) the law of a constituent entity of the Russian Federation may provide for the provision of subsidies to the budget of a constituent entity of the Russian Federation from the budgets of settlements and (or) municipal districts (city districts), in which in the reporting financial year the estimated tax revenues of local budgets exceeded the level established by the law of the constituent entity of the Russian Federation. The specified level cannot be set below two times the average, respectively, for settlements or municipal districts (urban districts) of a given subject of the Russian Federation level per capita;
• b) settlements transfer interbudgetary subsidies to the budget of the municipal district to resolve issues of local importance of an intermunicipal nature. The goals, procedure (methodology) for calculating, transferring and using such subsidies are established by the charter of the municipal district and (or) the municipal legal act of the representative body of the municipal district. The amount of subsidies is approved by the decision of the representative body of the municipal district and the decisions of the representative bodies of settlements on local budgets according to a uniform methodology established for all settlements of a given municipal district.
• 3. Subventions are allocated to the relevant budgets in order to compensate for additional costs arising in connection with the delegation of powers from one level of budget systems to another.

The totality of subventions forms the corresponding compensation fund.

Subventions are provided from the federal budget to the budgets of the constituent entities of the Russian Federation and from regional budgets to local budgets.

Subventions to the budgets of constituent entities of the Russian Federation are distributed in accordance with methods approved by the Government of the Russian Federation.

Subventions to local budgets are distributed in accordance with methods uniform for each type of subvention, approved by the law of the constituent entity of the Russian Federation.

Budget legislation provides for the possibility of providing other interbudgetary transfers (Articles 132.1, 139.1, 142.4, 142.5 of the Budget Code of the Russian Federation). The grounds for their provision are determined in the regulations of legislative (representative) and executive bodies based on the provisions of the Budget Code of the Russian Federation.

• Order of the Ministry of Finance of the Russian Federation dated November 12, 2007 No. 105n “On approval of the Procedure for suspending (reducing) the provision of interbudgetary transfers (except for subventions) from the federal budget in the event of non-compliance by public authorities of the constituent entities of the Russian Federation with the conditions for their provision.”
• Decree of the Government of the Russian Federation of November 22, 2004 No. 670 “On the distribution of subsidies to equalize the budgetary security of the constituent entities of the Russian Federation.”
• See: Order of the Ministry of Finance of the Russian Federation dated October 31, 2007 No. 97n “On General requirements for the procedure for collecting interbudgetary subsidies from local budgets.”

13. Interbudgetary transfers: concept, forms, conditions of provision.

Interbudgetary transfers- funds provided by one budget of the budget system of the Russian Federation to another budget of the budget system of the Russian Federation;

Subsidies- interbudgetary transfers provided on a gratuitous and irrevocable basis without establishing directions and (or) conditions for their use.

Subvention- funds provided to the budget of another level of the budget system of the Russian Federation or to a legal entity on a gratuitous and irrevocable basis for the implementation of certain targeted expenses. A subvention, unlike a subsidy, must be used strictly for its intended purpose and within the prescribed period; otherwise, it must be returned to the authority that provided it.

Subsidy- these are budget funds provided to the budget of another level of the budget system of the Russian Federation, to an individual or legal entity on the terms of shared financing of targeted expenses.

What is common to grants, subventions and subsidies is their gratuitous and irrevocable nature. A distinctive feature of subventions and subsidies is their targeted nature. And subventions and subsidies are differentiated by the amount of funding: subventions fully finance certain targeted expenses, and subsidies are provided on the basis of shared financing of targeted expenses.

Interbudgetary transfers from the federal budget to the budgets of the budget system of the Russian Federation are provided in the form of:

subsidies to equalize the budgetary security of the constituent entities of the Russian Federation;

subsidies to the budgets of constituent entities of the Russian Federation;

subventions to the budgets of the constituent entities of the Russian Federation;

other interbudgetary transfers to the budgets of constituent entities of the Russian Federation;

interbudgetary transfers to the budgets of state extra-budgetary funds.

Subsidies for equalizing the budgetary security of settlements are provided for in the budget of a constituent entity of the Russian Federation in order to equalize the financial capabilities of settlements in the exercise of powers by local governments to resolve issues of local importance based on the number of residents and (or) budgetary security. Subsidies to equalize the budgetary provision of settlements form a regional fund for financial support of settlements.

Subsidies for equalizing the budgetary provision of municipal districts (city districts) are provided for in the budget of a constituent entity of the Russian Federation in order to equalize the budgetary provision of municipal districts (city districts). Subsidies for equalizing the budgetary provision of municipal districts (city districts) form a regional fund for financial support of municipal districts (city districts).

At the same time, subsidies for equalizing the budgetary provision of the constituent entities of the Russian Federation form the Federal Fund for Financial Support of the Subjects of the Russian Federation, and the project for the distribution of subsidies for equalizing the budgetary provision of the constituent entities of the Russian Federation between the constituent entities of the Russian Federation is submitted to the State Duma as part of the draft federal law on the federal budget and is approved upon consideration the draft of the said federal law in the second reading.

It can be noted that, in accordance with current methodologies, subsidies for equalizing the budgetary security of the constituent entities of the Russian Federation are distributed according to two principles:

1) the first part of the subsidies is distributed among the constituent entities of the Russian Federation, the level of budgetary provision of which does not exceed 65% of the Russian average level;

2) the second part of the subsidies is distributed among a larger number of regions, the right to receive funds from the Federal Fund for Financial Support of the Subjects of the Russian Federation, for which it is limited to the average level of estimated budgetary security.

As a result, different methods are used to solve the same equalization problem, which leads to a slight decrease in the effectiveness of using subsidies.

Another type of interbudgetary transfers that needs to be highlighted are subsidies to the budgets of the constituent entities of the Russian Federation.

Subsidies have the following characteristics:

Targeted nature of spending;

Availability of conditions for receiving funds;

Obligations of subsidy recipients to ensure co-financing of relevant expenses.

Subsidies to the budgets of the constituent entities of the Russian Federation from the federal budget are understood as inter-budgetary transfers provided to the budgets of the constituent entities of the Russian Federation for the purpose of co-financing expenditure obligations arising in the exercise of powers of public authorities of the constituent entities of the Russian Federation on subjects of jurisdiction of the constituent entities of the Russian Federation and subjects of joint jurisdiction of the Russian Federation and the constituent entities of the Russian Federation , and expenditure obligations to fulfill the powers of local governments on issues of local importance.

The totality of subsidies to the budgets of the constituent entities of the Russian Federation from the federal budget forms the Federal Fund for Co-financing Expenses. The goals and conditions for the provision and expenditure of subsidies to the budgets of constituent entities of the Russian Federation from the federal budget, the criteria for selecting constituent entities of the Russian Federation for the provision of these interbudgetary subsidies and their distribution between the constituent entities of the Russian Federation are established by federal laws and (or) regulatory legal acts of the Government of the Russian Federation for a period of at least three years .

The next characteristics of subsidies are conditions for receiving them:

Submission of a report on the implementation of the program or its stage and a report on the execution of the plan for the use of funds allocated for the implementation of the program;

Implementation of the program or its stage, implementation of the plan for the use of subsidies or its stage;

No disqualification criteria

All this also allows us to consider this interbudgetary transfer as a stimulating mechanism for fiscal federalism.

Subventions to the budgets of the constituent entities of the Russian Federation from the federal budget are understood as inter-budgetary transfers provided to the budgets of the constituent entities of the Russian Federation for the purpose of financial support for the expenditure obligations of the constituent entities of the Russian Federation and (or) municipalities arising in the exercise of powers of the Russian Federation transferred for implementation to government bodies of the constituent entities of the Russian Federation and (or) local government bodies in the prescribed manner.

The totality of subventions to the budgets of the constituent entities of the Russian Federation from the federal budget forms the Federal Compensation Fund.

At the same time, subventions to the budgets of the constituent entities of the Russian Federation from the federal budget are distributed among all constituent entities of the Russian Federation according to a uniform methodology for the corresponding type of subventions in proportion to the population size (certain population groups), consumers of the relevant state (municipal) services, and other indicators, taking into account the standards for the formation of budgetary allocations for the implementation of relevant obligations and objective conditions affecting the cost of state (municipal) services in the constituent entities of the Russian Federation.

Their size for a specific constituent entity of the Russian Federation does not depend on the level of budgetary provision of the consolidated budgets of the constituent entities of the Russian Federation (volume of revenues) and is not included in the own income of regional and local budgets.

The draft distribution of subventions to the budgets of the constituent entities of the Russian Federation from the federal budget between the constituent entities of the Russian Federation is submitted to the State Duma in the draft federal law on the federal budget and is approved when considering the draft of the said federal law in the second reading.