The article touches upon the problems of increasing the number of subjects performing their budgets with a deficit, increasing the public debt of the subjects, as well as the high level of subsidies for a number regions. The purpose of the article is to find a solution to the problem of insufficient budget provision of the regions. On the example of the Kaluga region, one of the possible ways to increase the budget independence of the regions is considered and conclusions are drawn that regions that do not possess a significant raw material potential can solve the problem of insufficient budget provision by introducing innovative technologies in various sectors of the economy.


The Research article addresses budgets with a deficit, increasing the state debt of the subjects, as well as the high level of subsidization of some regions. The purpose of the research is to find a solution for the regions. One of the possible ways to increase the budget of the Kaluga region; (19659008) Keywords: budget federalism, regions-recipients.

The formation and development of the model of budgetary federalism is significantly influenced by the cultural and historical specifics of the development of the social and economic system of society. The model of budgetary federalism can not be perceived as a technical design of the distribution of income and expenditure between levels of the budget system.

Despite the adopted concept of fiscal federalism from 2005, the practical implementation of the principles of implementing budgetary federalism is characterized by a multiplicity of problems. First of all, this is due to the fact that the transfer of authority to the lower level of government implies the extension of the obligations of the appropriate level of power that do not synchronize with the growth of incomes for proper execution.

The number of entities executing their deficit budget is steadily growing, in turn, the development of such a trend contributes, respectively, to the growth of the state debt of the subjects. In particular, for the period from 2012 to 2016 the volume of state debt of the subjects increased by 1.74 times.

Table 1 – The volume of public debt of the subjects of the  in 2012-2016, thousand rubles

Year The volume of public debt of the subjects of the, thousand rubles
2012 1 351 404 472.69
2013 1 737 462 501.40
2014 2 089 510 880.61
2015 2 318 590 188.93
2016 2 353 191 214.30

Note: compiled by the author on the basis of materials [1].

Despite the complex of measures aimed at stimulating the subjects of the federation to increase tax and non-tax revenues, the situation in the ranking of the regions to the donor regions (self-sufficient) and the recipient regions is not characterized by a positive trend. The share of recipients is growing steadily.

It is generally accepted that the main reason is the existing inequality of tax revenues. Taxes on profit organizations may differ in comparison with different regions more than 400 times, and taxes on personal income more than 27 times, and this is within the same federal district, and if you look at the country as a whole, the indicators will be differentiated more more [2].

Such a ranking is explained by the disproportionate resettlement of the population, which is an objective factor that justifies the so-called regions of outsiders. For example, the resettlement of the population predetermines that  on personal income tax objectively prevails over all others, thereby negating the importance of such a subjective factor in assessing the socio-economic level of the development of the region – as the effectiveness of regional authorities in implementing regional development policies.

The present social differentiation -economic development of regions is solved through the provision of interbudgetary transfers. The result of such a solution to the problem is the highly subsidized nature of a number of regions of the Russian Federation. For example, in the republican budget for 2017 it is stipulated that the volume of gratuitous receipts in 2017 will make up more than 68.4%, of which 56.1% are subsidies [3]. There is also a shortage of tax and non-tax revenues in the Republic of Tyva. The volume of gratuitous revenues in 2017 is planned at the level of more than 80.6% of the total revenue of the regional budget, of which 79.5% are grants [4].

Let’s turn to the republican budgets of the Karachaevo-Cherkess Republic and the Republic of Tyva in 2012 . In 2012, the volume of gratuitous income of the Karachaevo-Cherkess Republic was planned at 75.3% of the total volume of budget revenues of the subject, of which 54.3% were subsidies [5]. In turn, in the Republic of Tyva, the volume of gratuitous revenues was predicted to amount to more than 79.4% of the total budget revenue, of which 91.3% were subsidies [6]. This fact proves that regions for the past five years have not even attempted to increase the share of tax and non-tax revenues in total revenues.

Russia is a country of huge raw material potential and up to certain events we have used this potential with success. But with the fall in world oil prices, and also with the continued high dependence of the federal budget on oil and gas revenues, the problem of balancing the federal budget has become acute. A decrease in federal budget revenues results in a reduction in expenditures and, as a result, a reduction in the volume of interbudgetary transfers that are provided to the lower budgets of the budget system.

The greatest potential for overcoming destructive aspects is the increase in the investment potential of the regions. This approach is focused on ensuring competitiveness not only in the current period, but also in the long term.

An example of an effective policy of the regional authorities to form an investment attractiveness of the region is the Kaluga Region. The main aspects of the regional development policy aimed at increasing the investment potential of the Kaluga region are:

  • cluster development vector;
  • development of industrial parks with a ready infrastructure;
  • minimizing administrative barriers;
  • organization of a unified system of regional development institutions;
  • creation of attractive conditions for doing business in the form of a system of tax privileges and preferences.

Kaluga region is a region with actively developing high technology ary economies. To date, the Kaluga region is the center of development of production clusters that meet the latest trends in modern technologies. Despite the fact that the history of the development of the Kaluga clusters began only 12 years ago with the opening of the Volkswagen plant, at the moment 11% of cars produced in Russia are produced in the territory. In addition to the production of automobiles and automotive components, the region has developed a pharmaceutical and transport and logistics cluster, at the stage of recovery there is a cluster of agrarian industry, a tourist-recreational cluster, and a cluster of high technologies [7].

Such a leap in the development of various industries allowed create additional jobs in the Kaluga region. In particular, over 26,000 jobs have been created over the past 11 years, and another 25,000 jobs are planned to be created within the framework of investment agreements already concluded [8].

It is worth noting that the regional leadership is making a major contribution to the development of the economy of the Kaluga region

In 2016, compared to 2015, the deficit of the regional budget decreased by 33% [9]in 2017 it is planned to reduce the deficit by an additional 37.8%, and starting in 2018, planned ny budget. At the same time, it is expected that the public debt of the Kaluga region will decrease by 39.3% between 2015 and 2019 [10].

It is also important that the increase in tax and non-tax revenues has sustained growth, which 2016, compared to 2015, was 5.7%, and in 2017 is planned to increase by another 1.67% [10].

In order to ensure a balanced development of the regions of the Russian Federation, the Government of the Russian Federation developed the State Program “Regional Policy and Federal relations”. However, as the positive experience of the Kaluga region shows us, the tasks of the region’s economic development, creating conditions for economic growth, raising the standard of living of the population, for example, by increasing the number of jobs, should, first of all, be solved at the regional level.

to replace the vector of justifying the recipient state of regions with insufficient tax and non-tax revenues for the quality of the work of regional authorities in the implementation of regional development policies.

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